Supreme Court Dismisses Appeal in Civil Procedure Code Counter-Claim Dispute. Court Rules Counter-Claim for Injunction Maintainable Even on Different Cause of Action Under Order 8 Rule 6A CPC.

In Favour of Accused
  • 1
Judgement Image
Font size:
Print

Case Note & Summary

This appeal by special leave arose from a judgment and order dated August 1, 1994 of the Punjab and Haryana High Court in Civil Revision No.1272 of 1994. The appellants-plaintiffs filed suit No.896/92 before the Sub-Judge, Amritsar for perpetual injunction to restrain the respondents from interfering with their possession of property bearing Khasra No.456, Purana Bazar, G.T. Road, Beas. The respondents-defendants filed a written statement pleading that they had purchased lands in Khasra No.103/1 situated at Budha Theh, Tehsil Baba Bakala, District Amritsar, Punjab, and were in possession of 18 marlas of that land. They sought a counter-claim of permanent injunction to restrain the appellants from interfering with that possession. The appellants filed an additional written statement under Order 8 Rule 6E CPC disputing the counter-claim averments and contending that the counter-claim was not maintainable. They also filed an application under Order 8 Rule 6C and Section 151 CPC praying to exclude the counter-claim from the written statement. The Subordinate Judge dismissed that application by order dated November 11, 1993. The High Court dismissed the revision with a direction to the trial Court to decide as an issue whether the property in dispute was the same as the subject matter of the counter-claim and to dispose of the suit after recording findings. Hence the appeal before the Supreme Court. The appellant contended that in a suit for injunction, cause of action is based on threat of dispossession, and a counter-claim is referable only to money suits, so the counter-claim should have been excluded. The appellant also challenged the High Court's direction to identify the land. The respondent argued that the object of Rules 6A to 6G CPC is to avoid multiplicity of proceedings and all claims between parties, whether based on same or different cause of action, should be tried in the same proceedings. The Supreme Court examined the provisions of Order 8 Rule 6 and Rules 6A to 6G CPC as inserted by the CPC Amendment Act, 1976. It noted that prior to 1976, Rule 6 limited set-off or counter-claim to money suits, but the amendment conferred a statutory right to set up any right or claim in respect of a cause of action accruing to the defendant against the plaintiff, whether before or after filing of the suit but before the time for delivering defence expires, and whether such counter-claim is for damages or not. The Court held that the language of Rule 6A(1) is wide enough to include independent causes of action not connected with the plaintiff's cause of action, and the only limitation is that the cause of action should arise before the time fixed for filing the written statement expires. The Court relied on Laxmidas Dahyabhai Kabarwala v. Nanabhai Chunilal Kabarwala & Ors. and Mahendra Kumar & Anr. v. State of Madhya Pradesh & Ors. to support the view that a counter-claim is treated as a cross-suit and can be decided in the same suit without relegating the defendant to a fresh suit. The Court held that the counter-claim expressly is treated as a cross-suit with all indicia of pleadings as a plaint including the duty to aver cause of action and pay requisite court fee, and that relegating the defendant to a separate suit would defeat the purpose of the amendment. The Supreme Court found no merit in the appeal and dismissed it with no costs, thereby upholding the maintainability of the counter-claim for injunction in a suit for injunction even on a different cause of action.

Headnote

A) Civil Procedure - Counter-Claim - Maintainability in Injunction Suit - Code of Civil Procedure, 1908, Order 8 Rules 6A to 6G - A defendant in a suit for injunction may set up a counter-claim for injunction, whether relating to the same or a different property; the 1976 amendment removed earlier confinement of set-off/counter-claim to money suits. The trial court and High Court correctly allowed the counter-claim to proceed. Held that counter-claim is maintainable in injunction suit (Paras not mentioned).

B) Civil Procedure - Counter-Claim - Independent Cause of Action - Code of Civil Procedure, 1908, Order 8 Rule 6A(1) - The statutory language "any right or claim in respect of a cause of action accruing with the defendant" is wide enough to include causes of action independent of and unconnected with the plaintiff's cause of action; the only limitation is that the cause of action must accrue before the time fixed for filing the written statement expires. Held that the counter-claim need not relate to the original cause of action and may be set up even after institution of suit (Paras not mentioned).

C) Civil Procedure - Counter-Claim - Cross-Suit Effect and Avoidance of Multiplicity - Code of Civil Procedure, 1908, Order 8 Rule 6A(2) and (4) - A counter-claim has the same effect as a cross-suit, is to be treated as a plaint, and enables the court to pronounce final judgment on both original claim and counter-claim in the same suit. Held that relegating the defendant to a separate suit would defeat the purpose of the amendment and cause multiplicity of proceedings (Paras not mentioned).

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether in a suit for injunction, a counter-claim for injunction in respect of the same or a different property is maintainable, and whether a counter-claim can be made on a different cause of action.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

Appeal dismissed with no costs; counter-claim for injunction held maintainable in suit for injunction even on different cause of action; trial court and High Court orders upheld.

Law Points

  • Order 8 Rule 6A CPC confers statutory right to set up counter-claim independent of plaintiff's claim
  • counter-claim not confined to money suits
  • cause of action need not relate to original cause of action
  • counter-claim treated as cross-suit
  • object is to avoid multiplicity of proceedings
  • cause of action must accrue before time for written statement expires
Subscribe to unlock Law Points Subscribe Now

Case Details

1996 LawText (SC) (05) 70

1996-05-07

K. Ramaswamy, G.B. Pattanaik

Pramod Dayal for appellants; H.N. Salve, N.D. Garg, Rajiv Kr. Garg for respondents

Sh. Jag Mohan Chawla & Anr.

Dera Radha Swami Satsang & Ors.

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Civil suit for perpetual injunction and counter-claim for permanent injunction involving disputes over possession of separate parcels of land.

Remedy Sought

Appellants-plaintiffs sought perpetual injunction to restrain respondents from interfering with possession of property Khasra No.456, Purana Bazar, G.T. Road, Beas; respondents-defendants sought counter-claim of permanent injunction to restrain appellants from interfering with their possession of 18 marlas of land in Khasra No.103/1, Budha Theh, Tehsil Baba Bakala, District Amritsar.

Filing Reason

Appellants claimed threat of dispossession and interference with peaceful possession by respondents; respondents claimed ownership and possession of different land and sought protection.

Previous Decisions

Sub-Judge, Amritsar dismissed appellants' application under Order 8 Rule 6C and Section 151 CPC to exclude counter-claim by order dated November 11, 1993; Punjab and Haryana High Court dismissed Civil Revision No.1272 of 1994 on August 1, 1994, directing trial court to decide as an issue whether the property in dispute is same as counter-claim property and to dispose of suit.

Issues

Whether in a suit for injunction, a counter-claim for injunction in respect of the same or a different property is maintainable Whether a counter-claim can be made on a different cause of action independent of the plaintiff's cause of action

Submissions/Arguments

Appellant contended that counter-claim is referable only to money suits and not maintainable in a suit for injunction; trial court ought to have excluded counter-claim Appellant contended that High Court direction to identify land where counter-claim relates was inconsistent Respondent contended that object of Rules 6A to 6G CPC is to avoid multiplicity of proceedings and all claims, whether same or different cause of action, should be tried together

Ratio Decidendi

Order 8 Rule 6A CPC, as inserted by CPC Amendment Act 1976, confers statutory right on defendant to set up counter-claim independent of plaintiff's claim and cause of action; counter-claim is not confined to money suits, need not arise from same cause of action, and is treated as cross-suit to avoid multiplicity of proceedings; cause of action must accrue before time for filing written statement expires.

Judgment Excerpts

The counter-claim is directed to be treated, by operation of sub-rule (4) thereof, as a plaint governed by the rules of the pleadings of the plaint. The only limitation is that the cause of action should arise before the time fixed for filing the written statement expires. The defendant may set up a cause of action which has accrued to him even after the institution of the suit. In other words, a defendant can claim any right by way of a counter-claim in respect of any cause of action that has accrued to him even though it is independent of the cause of action averred by the plaintiff and have the same cause of action adjudicated without relegating the defendant to file a separate suit.

Procedural History

Appellants-plaintiffs filed suit No.896/92 before Sub-Judge, Amritsar for perpetual injunction; respondents filed written statement with counter-claim; appellants filed additional written statement under Order 8 Rule 6E CPC and application under Order 8 Rule 6C and Section 151 CPC to exclude counter-claim; Sub-Judge dismissed application on November 11, 1993; High Court dismissed Civil Revision No.1272 of 1994 on August 1, 1994 with direction to trial court; appellants filed special leave petition/appeal before Supreme Court; Supreme Court granted leave and dismissed appeal on May 7, 1996.

Acts & Sections

  • Code of Civil Procedure, 1908: Order 8 Rules 6, 6A, 6B, 6C, 6D, 6E, 6F, 6G; Section 151; Order 20 Rule 18
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court Bombay High Court Allows Appeal Against Ad-Interim Order Restraining Invocation of Performance Bank Guarantee — Directs Bank to Pay Proceeds to Beneficiary Without Third-Party Deposit Condition. The court held that a bank guarantee is an independen...
Related Judgement
Supreme Court Supreme Court Grants Divorce on Grounds of Irretrievable Breakdown of Marriage. Landmark Decision Sets Precedent for Dissolution of Marriage in Complex Cases