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IN THE HIGH COURT OF DELHI AT NEW DELHI
VALMIKI J. MEHTA, J.
M/s Vysya Leasing & Finance Ltd. - Plaintiff
Versus
M/s Amrit Lal Bajaj & Co. & Anr. - Defendants
CS (COMM) Nos. 421 & 424 of 2016
Decided On : 28-11-2017
Amendment - Commercial Suit - Order VI Rule 17, Order XI Rule 12 and 14, Section 151, Section 30, Order XVI Rule 14, Section 35 CPC - The judgment discusses the applications for amendment of the written statement, change of plaintiff's name, and the defense of legal heirs. The court rejects the amendments sought by the defendants, allowing the plaintiff's application for change of name. The court emphasizes the need to adhere to strict timelines in commercial suits and dismisses the defendants' applications with costs.
Fact of the Case:
The case involves suits for recovery of amounts due to dishonored cheques issued by the deceased defendant. The legal heirs of the deceased defendant filed applications for amendment of the written statement and change of plaintiff's name.
Finding of the Court:
The court found that the amendments sought by the defendants were an abuse of process of law and were filed to delay the disposal of the suits. The court allowed the plaintiff's application for change of name and imposed costs on the defendants for filing frivolous applications.
Issues: The main issues revolved around the validity of the amendments sought by the defendants and the change of plaintiff's name. The court also addressed the defense of legal heirs under Sections 50 and 52 CPC.
Ratio Decidendi: The court emphasized the need to adhere to strict timelines in commercial suits and rejected the amendments sought by the defendants. The court allowed the plaintiff's application for change of name and dismissed the defendants' applications with costs.
Final Decision: The court dismissed the defendants' applications for amendment of the written statement and change of plaintiff's name, allowing the plaintiff's application for change of name and imposing costs on the defendants for filing frivolous applications.
Valmiki J. Mehta, J.
(I) I.A. No.15039/2016 (under Order VI Rule 17 CPC) filed by legal heir no.1 of deceased defendant no.2 in CS(COMM) No.421/2016
I.A. No.15037/2016 (under Order VI Rule 17 CPC) filed by legal heir no.1 of deceased defendant no.2 in CS(COMM) No.424/2016
(II) I.A. Nos.12315/2016 & 10097/2017 (under Order XI Rule 12 and 14 CPC read with Section 151 CPC) filed by legal heir of deceased defendant no.2 in CS(COMM) No.421/2016
I.A. Nos.12435/2016 & 10093/2017 (under Order XI Rule 12 and 14 CPC read with Section 151 CPC) filed by legal heir of deceased defendant no.2 in CS(COMM) No.424/2016
(III) I.A. No.10098/2017 (under Section 30 CPC read with Order XVI Rule 14 CPC) by legal heir no.1 of deceased defendant no.2 in CS(COMM) No.421/2016
I.A. No.10094/2017 (under Section 30 CPC read with Order 16 Rule 14 CPC) by legal heir no.1 of deceased defendant no.2 in CS(COMM) No.424/2016
(IV) I.A. No.2371/2017 (under Section 151 CPC) by plaintiff in CS(COMM) No.421/2016
I.A. No.2373/2017 (under Section 151 CPC) by plaintiff in CS(COMM) No.424/2016
1. By this order, the aforesaid applications at SI Nos. (I) to (III) filed by one of the defendants in the suit are being disposed of. The applications filed by plaintiff at SI No. (IV) are also being disposed of. Defendants in the suit are legal heirs of the original defendant no.2/Sh. Rajesh Bajaj - a stock broker. Defendant no.1 in the suit was the sole proprietorship concern of Sh. Rajesh Bajaj namely M/s Amrit Lal Bajaj & Co. Sh. Rajesh Bajaj was sued as defendant no.2 in the suit. On the death of Sh. Rajesh Bajaj, his legal heirs have been substituted and who are the present defendants in the suit. The applications at SI Nos. (I) to (III) are filed by Mrs. Sapna Bajaj, the wife of late Sh. Rajesh Bajaj/defendant no.2 and who is impleaded as legal heir no.1 of the deceased Sh. Rajesh Bajaj.
2. CS(COMM) No.421/2016 is a suit for recovery of Rs.14 lacs along with interest. CS(COMM) No.424/2016 is a suit for recovery of Rs.1.52 crores along with interest. The original numbers of the suits were CS(OS) Nos.549/2007 and 2010/1997. The plaintiff in both the suits is the same namely M/s Vysya Leasing & Finance Ltd. By the suits, recovery of the amounts are sought on account of the plaintiff/company having sold certain shares of companies under a package deal to the original defendant no.2/Sh. Rajesh Bajaj. For the sale price, the defendant no.2/Sh. Rajesh Bajaj had issued cheques which were dishonoured, and hence the subject suits came to be filed.
3. Both the suits were filed way back in the year 1997 with CS(OS) No.549/2007 being filed in District Court but was called for decision to this Court by consolidating the same with the suit being CS(OS)No.2010/1997 i.e. new CS(COMM) No.424/2016. Numbering of the suits given in this Court earlier have changed on account of the suits being commercial matters and therefore on passing of Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015 fresh numberings were given to these two suits by categorizing the suits as commercial matters.
4. So far as CS(COMM) No.424/2016 is concerned, the cheque which was issued by Sh. Rajesh Bajaj was cheque no. 279628 dated 1.9.1994 for the amount of Rs.1.10 crores. As regards CS (COMM) No.421/2016 the cheque which was issued was cheque no. 279649 dated 23.9.1994 for Rs. 10 lacs. Both the cheques were drawn on Citi Bank, New Delhi.
5. As per the written statement filed by Sh. Rajesh Bajaj in both the suits, the main defence which was taken was that the subject cheques were given in blank to the plaintiff only as collateral security and that in fact the plaintiff was not the owner of the subject shares which were said to be sold to defendant no.2/Sh. Rajesh Bajaj. It was also pleaded that the suits are not maintainable because it was when the ticket of Sh. Rajesh Bajaj/stock broker was sold of the Delhi Stock Exchange, it was then that the amounts of the suits had to be r
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