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2023 Supreme(Online)(Bom) 25653

HIGH COURT OF BOMBAY
Manish Pitale, J
Khanna Rayon Industries Pvt. Ltd. – Appellant
Versus
Swastik Associates & Ors. – Respondent
Commercial Suit No. 316 of 2020



Advocates:
For the Appellants/Petitioners: Mr. Sharan Jagtiani, Ms. Saurabhi Agrawal, Ms. Sheetal Shah, Mr. Jeyhaan Carnac, Ms. D.D. Bitra
For the Respondents: Mr. Ashish Kamat, Mr. Mohit Khanna, Mr. Paresh Shah, Ms. Leena Mirasee

The court ruled that amending pleadings in commercial suits must comply with stricter standards under the CPC as amended by the Commercial Courts Act to ensure expeditious dispute resolution.

Headnote:(A) Code of Civil Procedure, 1908 - Order VI Rule 17 - Amendment of plaint - Application for amendment to introduce documents in a commercial suit must satisfy the rigorous requirements of Order XI of the CPC, as modified by the Commercial Courts Act, 2015 - Amendment can be allowed if necessary to resolve real issues in controversy, but must meet statutory requirements regarding document disclosure. (Paras 1, 19-23)

(B) Legal Standards for Amendment - Pre-trial amendments should normally be granted, but amendments that involve document introduction must confirm to stricter standards in commercial disputes, emphasizing compliance with legislative intent behind amendments to ensure speedy resolution of cases. (Paras 19, 20)

(C)

Facts of the case:
The applicant/plaintiff sought to amend pleadings in a commercial suit, focusing on introducing additional documents and modifying defendants, with contention on minor documents' admissibility. (Paras 2-6)

Findings of Court:
The amendment concerning additional documents failed as it did not establish reasonable cause for prior non-disclosure, despite some amendments being allowed without serious dispute. (Paras 37-39)

Issues: The main issue was whether the proposed amendment, along with introducing documents already within the party's control, met the rigorous standards set by the amended CPC. (Paras 19, 20)

Ratio Decidendi: The court held that interrogation into the intent and necessity of amendments is essential, with a clear division of requirement set by the CPC amendments and commercial parameters. (Paras 19, 20, 35)

Result: The application is only partly allowed as per Exhibit “J”, the amendment at Exhibit “S” is rejected.

Table of Content
1. amendment application introduces additional documents. (Para 1 , 2 , 3 , 6)
2. court discusses the necessity and impacts of amendments. (Para 4 , 5 , 22 , 32)
3. arguments focus on procedural compliance. (Para 7 , 10 , 11 , 15)
4. emphasis on adherence to order xi in commercial suits. (Para 19 , 20 , 25)
5. application granted in part; some amendments allowed. (Para 37 , 39)

P.C.:

1. In the light of the rival submissions, the question that arises for consideration in this application filed under Order VI Rule 17 of the Code of Civil Procedure, 1908 (hereinafter referred to as the CPC for the sake of brevity) for amendment of plaint in a commercial suit, is that when such a proposed amendment seeks to place on record documents, whether the rigors of Order XI of the CPC, as amended by the Commercial Courts Act, 2015, would apply and to what extent. Considering the specific mandate of the amended Order XI of the CPC applicable to Commercial Courts, whether the stringent requirements specified under the same can be a factor for consideration when the proposed amendment of the plaint in a commercial suit seeks to place on record documents that were admittedly in the power, custody, control or possession of the Plaintiff at the time of filing of the suit.

2. The Plaintiff in the present case filed the present suit, which is admittedly a commercial suit, seeking specific performance of a development agreement read with a deed of addenda executed between the parties. The controversy revolves around the entitlement of the plaintiff to certain parking spaces in the property, that are subject matter of the development agreement. The Applicant /Plaintiff is seeking amendment of the plaint in term of Exhibits “J” and “S” annexed to the application. As regards proposed amendment as per Exhibit “J”, the Plaintiff proposes to delete Defendant No. 4 and to add in his place Defendant Nos. 4a and 4b. The Plaintiff further seeks to add Defendant Nos. 9 and 10 after Defendant No. 8, also seeking amendment in the pleadings to justify such deletion and addition of Defendants. There is no serious dispute raised on behalf of the Defendants with respect to the proposed amendment as per Exhibit “J”.

3. The real dispute pertains to the amendment as proposed under Exhibit “S” annexed to the application. As per the original Exhibit “S”, the Plaintiff sought addition of sub paragraph (y) after paragraph no. 5(x) in the original plaint and also sought addition of prayer clause a-1, seeking further specific relief in respect of the car parking spaces.

4. It is relevant that during the course of hearing of the present application, on 19th June, 2023, this Court expressed its opinion about not being inclined to allow amendment of the plaint and the prayer clause as proposed vide Exhibit “S” on behalf of the Plaintiff. In this situation, the learned Senior Counsel appearing for the Plaintiff, on instructions, submitted that an opportunity may be granted to substitute Exhibit “S” to place before this Court modified proposal to add sub paragraph No. (y) after paragraph no. 5(x) of the plaint. Accordingly, when this application came up for hearing, the modified proposed amendment as per substituted Exhibit “S” was pressed into service on behalf of Plaintiff. As per the modified proposal, sub paragraph No. (y) after paragraph no. 5(x) of the plaint was truncated and the proposed prayer clause (a-1) was completely deleted. In other words, the modified proposed amendment to the plaint stood reduced to a proposal to place on record two documents as Exhibits “M-1” and “M-2”, with the contents of the proposed sub paragraph paraphrasing the contents of the said documents proposed to be placed on record.

5. The document proposed to be placed on record at Exhibit “M-1” is a letter dated 30th August, 2019 addressed by the Defendant No. 1 to the Plaintiff and the document sought to be placed on record at Exhibit “M-2” is a chart prepared by the Plaintiff as regards

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