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The Amendment of the Plaint, which sought to challenge decree, was time barred and sue diligences was not demonstrated: Supreme Court

In the case of Basavaraj vs. Indira and Others revolves around an appeal in the Supreme Court of India concerning an amendment sought by respondent’s No. 1 and 2 in a partition suit. The primary issue was the permissibility of amending the plaint to include a prayer declaring a compromise decree null and void, particularly considering the timing, nature of the suit, and potential prejudice.

Respondents No. 1 and 2 filed a partition suit for ancestral property, initially making no challenge to an existing compromise decree dated October 14, 2004. Later in the proceedings, they sought an amendment to the plaint, adding a prayer to declare the compromise decree null and void. The Trial Court rejected the amendment, but the High Court allowed it, subject to costs.

Contentions made by Appellant: The appellant argued against the amendment, contending that the suit’s nature had impermissibly changed from partition to a declaration. They emphasized the time-barred nature of the amendment, citing the compromise decree’s passage in 2004. The appellant also raised concerns about potential prejudice and the failure to demonstrate due diligence by the respondents.

Substantial justice will be done to the parties. In support of the arguments, reliance was placed upon a judgment of this Court in Dondapati Narayana Reddy vs. Duggireddy Venkatanarayana Reddy and Others issue was whether the amendments and Avoidance of Multiplicity of Litigations, this case highlighted that amendments which are generally allowed to avoid multiplicity of litigations, but the court must consider whether the application is bona fide or mala fide and held that  Amendments are allowed to avoid multiplicity of litigations and Court needs to consider if the application for amendment is bona fide.

In Pushpa Devi Bhagat vs. Rajinder Singh and Others issues was whether Challenge to Consent Decree, the case clarified that no appeal is maintainable against a consent decree, and the only remedy is to approach the court that recorded the compromise to establish its validity, held that No appeal is maintainable against a consent decree and Consent decree operates as an estoppel and is valid unless set aside by the court

The Supreme Court, for the instant case held on February 29, 2024, upheld the appellant’s contentions. The Court highlighted the time-barred nature of the amendment, the lack of due diligence demonstrated by respondents, and the potential prejudice to the appellant if the amendment were allowed. It set aside the High Court’s order, dismissed the amendment application, and awarded costs of ₹1,00,000 to the appellant.

The Supreme Court, in its judgment, Justice Rajesh Bindal, held that the amendment sought by respondent’s No. 1 and 2 was not permissible. The Court emphasized that the amendment, which sought to challenge a compromise decree, was time-barred, and due diligence was not demonstrated. Additionally, allowing the amendment would cause prejudice to the appellant, as a right had accrued in their favour. The Court set aside the High Court’s order, dismissed the application for amendment, and awarded costs of ₹1,00,000 to the appellant, to be paid by respondents No. 1 and 2 jointly or severally on the next date of hearing before the Trial Court.

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Judgement Reviewed by: Namratha Sharma

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Court cant direct to reject plaint to return it to another court due to lack of jurisdiction : Bombay HC

TITLE : Shreem Electric Limited V Transformers and Rectifiers

CORAM : Hon’ble justice Sandeep V. Marne

DATE :  12th December, 2023

CITATION : Appeal No. 14843 of 2019

FACTS

The order passed by the District court was in challenge for rejection of a Plaint under Order 7 Rule 11 of the CPC. The plaintiff is a manufacturing and supplying unit involved in supplying Turn Key Projects for power stations. The defendant is engaged in power distribution and manufacturing transformers and alleged the petitioners of refusal to fulfill obligations arising from purchase orders. The petitioners initiated a commercial suit against the defendant. The defendant filed an application seeking rejection of plaint under Order 7 Rule 11 of CPC claiming the absence of cause of action and jurisdiction. The district court had returned the plaint to Ahmedabad while maintaining that the plaint cannot be rejected.

LAWS INVOLVED

Order 7 Rule 11 of CPC states that the plaint will be rejected on the following grounds :

  • Where there is no cause of action
  • Where the relief claimed is undervalued and has not been revised upon courts order.
  • Where there is a wrong stamp paper for relief claimed under a properly valued plaint.
  • Where the suit appears to be barred by law
  • Where the plaint is filed in duplicates or fails to comply with the provisions of Rule 9

ISSUES

  1. Whether the return of the plaint to Ahmedabad was justified by the district court?

JUDGEMENT

The court analysed that the district court came to the conclusion that there is a cause of action for filing the suit and has proceeded to reject the Defendant’s application. It was observed that the district court did not give a finding that the court lacked jurisdiction. It stated that just because there is a pending suit in another court, the need to tie the same would be set aside. The court therefore set aside the orders of the District Court.

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Written by- Sanjana Ravichandran

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