IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
A.Santhosh Reddy, J.
Rajakamal Electronics Private Limited and others - Petitioners
Versus
M/s. Sony India Pvt. Ltd. - Respondents
Civil Revision Petition No. 2115 of 2019
Decided On : 27-10-2022
Counter-claim - Civil Procedure - Order VIII Rule 6-A - [SUMMARY OF ACT SECTIONS REFERENCED: Order VIII Rule 6-A of C.P.C.] - The court discussed the provisions of Order VIII Rule 6-A of C.P.C. and its interpretation by referring to legal precedents. It highlighted that the right to file a counter-claim accrues before or after the filing of the suit but before the defendant has raised their defense. The court emphasized that the outer limit for filing a counter-claim is till the framing of the issues. It also noted that the purpose of Order VIII Rule 6-A of C.P.C. is to avoid multiplicity of proceedings and ensure the final resolution of disputes. The court concluded that the proposed counter-claim, filed after the plaintiff's evidence and relating to transactions from 2006 to 2011, was barred by limitation, in line with the provisions of the Limitation Act, 1963.
Fact of the Case:
The plaintiff filed a suit against the defendants for recovery of a sum of money based on goods supplied. The defendants sought permission to file a counter-claim, which was dismissed by the trial Court on the ground of limitation. The defendants challenged this decision through a Civil Revision Petition.
Finding of the Court:
The court found that the trial Court's decision to refuse permission for the defendants to file the counter-claim was not illegal or irregular. It concluded that the proposed counter-claim was barred by limitation and dismissed the Civil Revision Petition.
Issues: The main issue was whether the trial Court's decision to dismiss the application for filing the counter-claim was sustainable in law.
Ratio Decidendi: The court's decision was based on the interpretation of Order VIII Rule 6-A of C.P.C. and the application of the provisions of the Limitation Act, 1963. It emphasized that the right to file a counter-claim accrues before or after the filing of the suit but before the defendant has raised their defense, and that the outer limit for filing a counter-claim is till the framing of the issues. The court also highlighted that the purpose of Order VIII Rule 6-A of C.P.C. is to avoid multiplicity of proceedings and ensure the final resolution of disputes.
Final Decision: The Civil Revision Petition was dismissed, and the defendants were left to avail remedies, if available in law. Miscellaneous applications pending, if any, were closed, and there was no order as to costs.
ORDER :
This Civil Revision Petition is filed to set aside the order, dated 08.07.2019, passed in I.A.No.260 of 2019 in O.S.No.554 of 2014 by the V Senior Civil Judge, City Civil Court, Hyderabad.
2. Heard the submissions of Sri Premkumar Pothina, learned counsel for the petitioners and Sri Vasam Anand Kumar, learned counsel for the respondent. I have perused the material record.
3. The petitioners herein are the defendants (“defendants” for short) and the respondent herein is the plaintiff (“plaintiff” for short), who filed suit in O.S.No.554 of 2014.
4. The facts, which are necessarily be stated as prelude to the order, in brief, are as follows:
“The counter claimant therefore prays that this Hon’ble Court may be pleased to pass a Judgment and Decree in favour of Counter claimants against the defendant/plaintiffs:
(a) To set-off a sum of Rs.5,00,000/- (Rupees Five Lakhs only) along with interest accrued herein from the claim of the plaintiff.
(b) To declare the Counter claim/damages of Rs.10,00,000/- (Rupees Ten Lakhs only) filed by the counter claimants against the plaintiff for Rs.10,00,000/-.
(c) To award costs of the counter claim in the present suit;
(d) And pass such other relief or reliefs as this Hon’ble Court may deem fit and proper in the circumstances of the case”.
5. In the affidavit filed in support of the application, it is averred that defendant No.1-company was the first multi-brand electronic store and it ran successfully for some time and subsequently, its business was deteriorated and decided to withdraw from the business and decided to liquidating in stocks in hand, capital assets and clearing their outstanding debts. The defendants in their written statement reserved their right to file counter-claim. Hence, they sought permission to file the proposed counter claim.
6. The plaintiff filed counter affidavit reiterating its case pleaded in the plaint and has taken a specific plea that the amount being claimed by way of counter-claim relates to the transactions that have taken place prior to 2012. Therefore, counter claim is barred by time. Hence, prayed to dismiss the application.
7. The trial Court, after hearing both sides, dismissed the application filed by the defendants seeking permission to file the counter-claim by observing that the counter claim is barred by limitation.
8. Aggrieved by the said orders, the present civil revision petition is preferred by the defendants stating that the impugned order passed by the trial Court is contrary to law, weight of evidence and probabilities of the case. The trial Court erred in dismissing the application and it has failed to understand that the cause to the petitioners to file counter claim had arisen only after the respondent filed O.S.No.554 of 2014. The trial Court erroneously concluded that the cause of action arose during the period 2006-2011 and it has dismissed the application on the ground of limitation, which is contrary to law.
9. The plaintiff has filed counter affidavit reiterating their case pleaded in the plaint. It is submitted that the impugned order does not suffer from any illegality and that the trial Court has rightly refused to file the counter-claim that the same is barred by time. It is further submitted that the impugned order needs no interference.
10. Learned counsel for the defendants vehemently submits that the cause to file counter claim has been accrued during the cross-examination of PW.1 between 26.08.2011 and 26.02.2019, when the plaintiff filed additional documents in support of his clai
A counterclaim must be raised before issue framing begins; late submissions risk disrupting judicial efficiency and violate procedural rules.
Counter claims must be filed before the settlement of issues in a trial stage; filing after issues are settled is not maintainable.
A counter-claim cannot be permitted after the framing of issues unless exceptional circumstances exist, which were not present in this case.
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