IN THE HIGH COURT OF KERALA AT ERNAKULAM
C. JAYACHANDRAN, J.
M/s. SEPC Limited (Formerly Shriram EPC Limited) - Petitioner
Versus
Sri. V.S. Sunilkumar, S/o Sukumaran & Ors. - Respondents
OP(C) No. 1974 of 2023
Decided On : 27-02-2024
Amendment - Recovery of Money - [Order II Rule 2 CPC, Order VI Rule 17 of the CPC, Charan Das v. Amir Khan, L.J. Leach & Co. Ltd. v. Jardine Skinner & Co., A.K. Gupta & Sons Ltd. v. Damodar Valley Corporation, Ganga Bai v. Vijaya Kumar, Vineet Kumar v. Mangal Sain Wadhera, G. Nagamma and Another v. Siromanamma and Another, Ragu Thilak D. John v. S. Rayappan & Ors., Pankaja and Another v. Yellappa, Life Insurance Corporation of India v. Sanjeev Builders Private Limited and Another] - The court allowed the amendment to incorporate a time-barred relief for recovery of money, emphasizing that the amendment did not change the nature or character of the suit and was necessary for determining the real question in controversy. The court cited various legal principles and precedents to support its decision, highlighting that the power to allow an amendment is wide and should be exercised in the interest of justice, even if the relief sought is apparently time-barred. The court emphasized that the purpose of allowing amendments is to avoid multiplicity of litigation and to minimize injustice or prejudice to the other party. The court also noted that delay in applying for amendment alone is not a ground to disallow the prayer and that a liberal approach should be the general rule.
Fact of the Case:
The suit for injunction of the year 2016 was sought to be amended as one for recovery of money in the year 2023. The petitioner, the second defendant, contended that the claim for recovery of money was barred by the law of limitation and that the extensive nature of the amendment sought changed the nature and character of the suit. The first respondent, the plaintiff, argued that the delay in seeking amendment was explained by waiting for the outcome of an agreement recorded in the Minutes of Meeting (MoM) and that the amendment would not alter the nature and character of the suit.
Finding of the Court:
The court found that the amendment to incorporate a time-barred relief for recovery of money was allowed as it did not change the nature or character of the suit and was necessary for determining the real question in controversy. The court emphasized the wide power to allow amendments in the interest of justice and to avoid multiplicity of litigation.
Issues: The main issue centered around whether an amendment to incorporate a time-barred relief for recovery of money can be allowed and whether the delay in seeking amendment should be a ground to disallow the prayer.
Ratio Decidendi: The court held that the power to allow an amendment is wide and should be exercised in the interest of justice, even if the relief sought is apparently time-barred. The court emphasized that the purpose of allowing amendments is to avoid multiplicity of litigation and to minimize injustice or prejudice to the other party. The court also noted that delay in applying for amendment alone is not a ground to disallow the prayer and that a liberal approach should be the general rule.
Final Decision: The Original Petition failed and was dismissed by the court.
The legal document pertains to a case where the court discussed the broad discretion courts have in allowing amendments to pleadings, even if the relief sought is apparently barred by the limitation period. The court emphasized that amendments should be permitted in the interest of justice to avoid multiple litigations and to address the real issues in controversy (!) (!) .
In this case, the plaintiff initially filed a suit for injunction in 2016, which was later sought to be amended in 2023 to include a claim for recovery of money. The defendant argued that the claim was barred by the law of limitation and that the extensive nature of the proposed amendment changed the character of the suit, which should not be permitted. The plaintiff explained that the delay was due to waiting for the outcome of related proceedings and that the amendment was necessary to address the core issue of recovery of dues, which was originally connected to an agreement recorded in the Minutes of Meeting (!) (!) .
The court observed that the amendment did not alter the fundamental nature of the suit, which was essentially a money claim, and that the reliefs sought by injunction were connected to the same underlying facts and cause of action. It also noted that the law permits amendments even if the relief becomes time-barred, provided the amendment does not introduce a new cause of action or fundamentally change the character of the suit. The court highlighted that delays alone are not sufficient grounds for disallowing amendments, especially when the amendments are necessary for the effective adjudication of the dispute and do not cause undue prejudice to the other party (!) (!) .
Furthermore, the court reiterated that amendments should be viewed liberally and that technical objections should be avoided in favor of substantive justice. The discretion to allow amendments is wide, and amendments that seek to incorporate facts already pleaded or that clarify the case are generally favored, even if they relate to reliefs that are time-barred, as long as they do not fundamentally change the nature of the suit or prejudice the other side (!) (!) .
In conclusion, the court dismissed the petition challenging the order allowing the amendment, reaffirming that amendments aimed at determining the true issues in controversy and avoiding multiplicity of litigation should be permitted in the interest of justice, regardless of limitations concerns, provided they do not cause undue prejudice or fundamentally alter the suit's character.
JUDGMENT :
A suit for injunction of the year 2016 is sought to be amended as one for recovery of money as well, in the year 2023. By Ext.P8 order, the same was allowed, holding that the dispute is between the same parties, with respect to the same subject matter and that the amendment would not change the nature and character of the suit. As regards the objection that the amended claim is barred by law of limitation, the learned Sub Judge found that Ext.P4 order of the High Court reserved a right in favour of the plaintiff (first respondent herein) to agitate his claim for money. Besides, it was also found that the petitioner was waiting on the basis of an agreement arrived at between the parties in the aegis of the Minister for Agriculture recorded in the Minutes of Meeting (MoM) dated 13.01.2016; and the question whether the said period is liable to be excluded and whether the plaintiff has got a cause of action for filing the suit for recovery of money can be decided only after evidence. The aggrieved second defendant is the petitioner herein.
2. Heard Sri. Ashok Anchalia and Sri. John Joseph Vettikad, learned counsel for the petitioner, Sri. T.N. Manoj, learned counsel for the first respondent, Sri. Joseph M.P., learned counsel for the second respondent, Sri. Nithin George, learned counsel for the third respondent and Sri. B. Premod, learned counsel for respondents 4 and 5.
3. Learned counsel for the petitioner/second defendant essentially stressed on the contention that the claim for recovery of money is awfully barred by the law of limitation. Such an amendment takes away a valuable defence available to the petitioner/second defendant and hence cannot be allowed, is the submission made. Learned counsel relied upon the following judgments of the Hon'ble Supreme Court, in this regard.
(i) K. Raheja Constructions Limited and Another v. Alliance Ministries and Others [(1995) (suppl.) 3 SCC 17]
(ii) Life Insurance Corporation of India v. Sanjeev Builders Private Limited and Another [(2022) SCC online SC 1128]
and a decision of a learned Single Judge of this Court in
(iii) Kalpana v. Premkumar [FAO (RO) No.100/2013], [ILR 2014 (3) Kerala 708].
4. Based on facts, it was submitted that the suit was filed on 26.02.2016 and the written statement was filed as early as on 05.12.2016. However, Ext.P5 application for amendment was preferred only on 24.02.2023, that is after lapse of about seven years. The present relief sought for recovery of money - sought to be incorporated by amendment - is therefore, hopelessly barred by the law of limitation, is the submission made.
5. Another aspect highlighted by the learned counsel for the petitioner is the extensive nature of the amendment sought for. It was pointed out that as many as 34 additional paragraphs is sought to be incorporated to the plaint by the amendment. Besides, the existing reliefs were sought to be substituted by new reliefs. The amendment sought for, changes the nature and character of the suit, is the third bone of contention to attack Ext.P8 order. It was contended that the plaintiff, by virtue of the subject amendment, was attempting to set up a new case, with a new cause of action and a new relief, which cannot be allowed by any yardstick, as settled by a series of decisions of the Honourable Supreme Court.
6. It was also submitted that the amendment sought for was not bonafide and that it causes serious prejudice to the petitioner, which cannot be compensated adequately in terms of money.
7. As regards Ext.P4 order of this Court in W.P.(C)No.28814/2022, which reserved the first respondent's right to agitate his grievance with respect to non-payment of the outstanding dues, learned counsel would submit that the petitioner herein was not made a party in the said writ petition. It was then contended that the amendment sought for was against the findings in Ext.P7 order of the Additional District Judge, Irinjalakkuda in C.M.A.No.78/2016, which was carried by the first respondent her
G. Nagamma and Another v. Siromanamma and Another
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AI
The power to allow an amendment is wide and should be exercised in the interest of justice, even if the relief sought is apparently time-barred. The purpose of allowing amendments is to avoid multipl....
Court's discretion allows amendments even if time-barred, provided they don't change the suit's nature and serve justice.
(1) Amendment of plaint – Where aspect of delay is arguable, prayer for amendment could be allowed and issue of limitation framed separately for decision.(2) Amendment of written statement – Princip....
Amendments to pleadings are permitted unless they change the suit's nature or introduce time-barred claims, supporting effective adjudication and justice.
The main legal point established in the judgment is that the trial court has the discretion to allow amendments to pleadings at any stage of the proceedings, provided it does not cause injustice or p....
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