Amendments to the plaint are permissible to ensure justice, even when a defendant company is dissolved, emphasizing the continuity of liabilities in cases of amalgamation.

1. This is a plaintiff's revision directed against order dt. 4-4-1981 by Sri Kripa Shankar III Addl. Civil Judge Kanpur in Original Suit No. 144 of 1977 by which he rejected the application paper No. 22 Kha 1 of plaintiffs under O.6, R.17 of the Civil P. C. for amendment of the plaint and upheld the objection of respondents paper No. 24 C2.

2. Suit No. 144 of 1977 was filed in the court concerned on 31-3-1977. The plaintiffs were State of U. P. and U. P. State Textile Corporation Ltd.

3. Defendant was M/s. Jaya Shree Textile and Industries Ltd. having its registered office at Rishra, district - Hooghly, West Bengal.

4. The suit was for recovery of Rs. 5,62,558.53P. together with interest pendente lite and future at 12 per cent per annum. Costs of the suit were also claimed.

5. It was alleged that State of U. P. had appointed plaintiff No. 2 its nominee for the supplies of Staple Fibre Yarn by the manufacturers against the allotment and had made various allotments in their favour.

6. Defendant M/s Jaya Shree Textile and Industries Ltd. from 3-8-1974 to 21-10-1974 had supplied to the U. P. State Textile Corporation Ltd. applicant No. 2 certain quantities of staple yarn and applicant No. 2 made payments on the basis of the bills submitted to them by defendant.

7. Subsequently it transpired that the defendant had realised from applicant - plaintiff No. 2 several lacs of rupees in excess which was not at all due to it.

8. Consequently, a notice demanding the excess along with interest was sent to M/s Jaya Shree Textile and Industries Ltd. at their registered office and address and the same was duly served but since no payment was made so the suit was filed in the court of learned IInd Civil Judge, Kanpur.

9. Pending the suit an application was made by M/s Indian Rayon Corporation Ltd. alleging that the said Jaya Shree Textile and Industries Ltd. had been amalgamated with the Indian Rayon Corporation Ltd. under the orders of Calcutta High Court on 21st July 1976 and the Gujarat High Court at Ahmedabad on 13-7-1976 and the said M/s. Jaya Shree Textile and Industries Ltd. stood dissolved by the order of the Calcutta High Court with effect from 18-10-1976 and consequently there was no surviving legal entity and in fact Jaya Shree Textile and Industries Ltd. ceased to exist in the eye of law with effect from 18-10-1976 and the suit filed against the defendant was simply a nullity and liable to be dismissed.

10. On learning about these facts plaintiff sought leave to amend the plaint paper No. 22 Kha 1 under O.6, R.17, C.P.C., on 20-1-1979 by which it was prayed that the liability of defendant related to the period when it was not amalgamated. However, in order to avoid legal complication plaintiffs sought addition of Indian Rayon Corporation Ltd. also as defendant to the suit. This prayer was opposed by defendant on the ground that the suit was filed in the name of non - entity and amounted to a nullity and so no question of any amendment arose.

11. Learned trial Judge found that after the amalgamation of the Company under S.394 sub-cl.(2) of the Companies Act and S.92 sub-cl.(2) of the Companies Act the transferee Company would be liable for all the liabilities of the transferor Company. As the suit was filed initially against a dead Company so such leave to amend could not be allowed.

12. Aggrieved by this decision this revision has been filed.

13. I have heard learned counsel for the parties and perused the record.

14. On behalf of the revisionists it was pointed out that assuming for the sake of argument that the suit was filed against a dead person but when the plaintiff was kept in dark about the order of amalgamation and wa