High Court of Calcutta
Prasenjit Mandal, J.
Saket Khaitan – Appellant
Versus
J. Thomas Investment Services Pvt. Ltd. – Respondent
CO. No. 2733 of 2008
Decided on : Apr 18, 2011
CIVIL PROCEDURE CODE - Rejection of Plaint - Order 7 Rule 11 and Order 1 Rule 10 of the CPC - Necessary Parties - Proper Impleadment - Interpretation - The court held that the impugned order allowing the application under Order 7 Rule 11 and under Order 1 Rule 10 of the CPC filed by the defendant No.2 cannot be supported as the plaintiff has clearly stated in the plaint how the defendants are involved in the matter of the investment and repayment of loan by the defendants to the plaintiff.
Fact of the Case:
The plaintiff invested money with the defendants and filed a suit for recovery of money. The defendants filed applications under Order 7 Rule 11 and Order 1 Rule 10 of the CPC for rejection of the plaint and deletion of the names of certain defendants. The trial court allowed the application for deletion of the names of the defendants and dismissed the other application.
Finding of the Court:
The court held that the trial court erred in allowing the application for deletion of the names of the defendants as the plaintiff had clearly stated in the plaint how the defendants were involved in the matter of the investment and repayment of loan.
Issues: Whether the impugned order allowing the application under Order 7 Rule 11 and under Order 1 Rule 10 of the CPC filed by the defendant No.2 can be supported.
Ratio Decidendi: The court held that the impugned order cannot be supported as the plaintiff has clearly stated in the plaint how the defendants are involved in the matter of the investment and repayment of loan.
Final Decision: The court set aside the findings and conclusion of the trial court on the application under Order 7 Rule 11 and under Order 1 Rule 10 of the CPC filed by the defendant No.2 and dismissed the application.
Prasenjit Mandal, J.
1. THESE two applications are disposed of by this common judgment as both the applications relate to the common question of law.
2. FOR convenience, I am discussing the CO. No. 2733 of 2008 first. This application is at the instance of the plaintiff and is directed against the order dated May 27, 2008 passed by the learned Civil Judge (Senior Division), Ninth Court, Alipore in Money Suit No.79 of 2007 thereby disposing of the two applications; one under Order 7 Rule 11 and under Order 1 Rule 10 of the CPC filed by the defendant No.2 and the other under Order 7 Rule 10 and 11 of the CPC filed by the defendant No. 1.
3. THE plaintiff/petitioner herein invested money with the defendant Nos. 1and2 to the tune of Rs.17 lac with interest payable at the rate of 24% per annum. THE defendant No. 1 cannot function independently and it is under the control and guidance of the defendant No.2. THE defendant Nos.3 to 17 are the directors of the two companies. After investment, some repayment was made to the petitioner and the plaintiff was yet to get a sum of Rs.7,11,044.10. THE defendant did not repay the balance amount as per terms of the agreement between the parties and, as such, the plaintiff instituted the suit for recovery of money to the tune of Rs.7,11,044/-, interest and other reliefs.
4. THE defendants entered appearance and they are contesting the said suit. Thereafter, the above two applications were filed on. behalf of the defendant Nos. 1 and 2 as stated above praying for rejection of the plaint. Alternatively, deletion of the name of the defendant Nos.2 to 17 on the ground stated in the petition. THE plaintiff filed an objection against that petition. Upon hearing both the sides in details, the learned Trial Judge allowed the application under Order 7 Rule 11 and Order 1 Rule 10 of the CPC of the defendant No.2 directing the deletion of the name of the defendant Nos.2 to 17 from the cause title of the instant suit. The other petition under Order 7 Rule 10 and 11 filed by the defendant No. 1 was disposed of holding that the suit is not barred by limitation. Being aggrieved, this application has been preferred.
5. NOW, the point for consideration is whether the impugned order should be sustained.
6. UPON hearing both the sides and on consideration of the materials on record I am of the view that in order to dispose of the applications under Order 7 Rule 11 and Order 1 Rule 10 and another one under Order 7 Rule 10 and 11 of the CPC, the plaint in its present form along with the annexures are to be looked into. There is no scope of looking after the defence version at all. Therefore, whether the learned Trial Judge was justified in disposing of the said two applications in the manner as stated above, the prime consideration is the averments as made in the plaint. If, on perusal of the averments made in the plaint, it appears that the plaintiff was not required to add the defendant Nos.2 to 17 as parties to the suit, they may be excluded from the plaint. On the other hand, if on perusal of the plaint, as a whole, it appears that the plaintiff has stated functions or parts played by the defendants with regard to the claim of the plaintiff and that they did so with regard to the claim of the plaintiff in the suit, then the question of deletion of the name of the defendant Nos.2 to 17 does not arise at all. Similarly, if on perusal of the plaint, it appears that all the defendant s, are involved in the matter as alleged in the plaint, then the question of all wing the application under Order 7 Rule 11 of the CPC does not arise. The learned Advocate for the plaintiff has referred to the decisions of Gunendra Kumar Das v. Dura Steamship Ltd. and Anr. reported in AIR 1989 Calcutta 398 and submits that unless a written statement is filed, the question whether the defendant is necessary party, cannot be decided. The plaint cannot be rejected on the ground that the defendants are maliciously impleaded, before th
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