Bombay High Court Allows Amendment of Plaint to Correct Clerical Error in Loan Agreement Exhibit. Court permits substitution of wrong document with correct agreement reflecting 12.5% interest instead of 1% as agreed between parties.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The plaintiff, Kyoorius Communications Private Limited, filed a Commercial Summary Suit against Datalink Multi Trading Private Limited and others for recovery of a loan amount. The plaint was on lodging number and had been served on the defendants, but no writ of summons had been issued. The plaintiff discovered a clerical error in the plaint: the document annexed as Exhibit A, which was the loan agreement, incorrectly stated an interest rate of 1% in clauses 2 and 3, whereas the actual agreed rate was 12.5% as reflected in the correct version of the agreement. The plaintiff filed an Interim Application seeking to amend the plaint by replacing the wrong exhibit with the correct one. The plaintiff's counsel argued that the amendment was merely to correct a clerical mistake and that no defendant would be prejudiced, as the suit sought only the principal amount and the correct interest rate was supported by other exhibits (C, D, and E). The defendant No.2 opposed the amendment, contending that it was not a party to the loan agreement but only an assignee of the principal amount. The court, relying on the principle laid down in Kisandas Rupchand v. Rachappa Vithoba (ILR (1909) 33 Bom. 644), held that the amendment was permissible as it was only to correct a clerical error and no prejudice would be caused to any defendant. The court allowed the amendment application, directing the plaintiff to carry out the amendment within two weeks and serve the amended plaint on the defendants.

Headnote

A) Civil Procedure - Amendment of Pleadings - Clerical Error - Correction of Exhibit - The plaintiff sought to amend the plaint to replace a wrong document annexed as Exhibit A with the correct loan agreement, as the annexed version erroneously mentioned interest at 1% instead of the agreed 12.5%. The court allowed the amendment, noting that no writ of summons had been issued and no defendant would be prejudiced, following the principle in Kisandas Rupchand v. Rachappa Vithoba (ILR (1909) 33 Bom. 644) (Paras 1-4).

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Issue of Consideration

Whether the plaintiff should be permitted to amend the plaint to correct a clerical error by replacing a wrong document annexed as Exhibit A with the correct agreement.

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Final Decision

The court allowed the Interim Application, permitting the plaintiff to amend the plaint by replacing the wrong document annexed as Exhibit A with the correct agreement. The amendment to be carried out within two weeks and the amended plaint to be served on the defendants.

Law Points

  • Amendment of pleadings
  • Clerical error
  • Correction of exhibit
  • No prejudice to defendants
  • Suit on lodging number
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Case Details

2024 LawText (BOM) (01) 145

COMMERCIAL SUMMARY SUIT (L) NO.25020 OF 2023 WITH INTERIM APPLICATION (L) NO.29700 OF 2023

2024-01-10

ABHAY AHUJA, J.

2024:BHC-OS:835

Ms. Kavisha Khanna i/by M/s Hedgehog and Fox LLP for Plaintiff/Applicant, Ms. Nisha Kaba with Mr. Sean Ma and Mr. Jayesh Bagul for Defendant No.2

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Nature of Litigation

Commercial Summary Suit for recovery of loan amount

Remedy Sought

Plaintiff seeks to amend plaint to correct clerical error by replacing wrong document annexed as Exhibit A with correct loan agreement

Filing Reason

Clerical error in annexing wrong document as Exhibit A in the plaint

Issues

Whether the plaintiff should be permitted to amend the plaint to correct a clerical error by replacing a wrong document annexed as Exhibit A with the correct agreement.

Submissions/Arguments

Plaintiff's counsel submitted that the amendment is to correct a clerical error, no writ of summons has been issued, and no defendant would be prejudiced. Defendant No.2 opposed, stating it was not a party to the loan agreement but only an assignee of the principal amount.

Ratio Decidendi

Amendment of pleadings to correct a clerical error is permissible if no prejudice is caused to the opposite party, especially when no writ of summons has been issued and the suit is at an early stage.

Judgment Excerpts

This Interim Application seeks to amend the plaint seeking to correct a clerical error which occurred by annexing a wrong document as Exhibit A and to replace the same. Learned counsel submits that therefore, in view of law settled by this Court way back in the year 1909 in the case of Kisandas Rupchand and ors. Vs. Rachappa Vithoba Shilvant and ors. (ILR (1909) 33 Bom. 644) which decision has been followed in several decisions of this Court as well the the Hon’ble Supreme Court, this Court allow the application to carry out the amendment which is only to bring on record the correct agreement.

Procedural History

Plaintiff filed Commercial Summary Suit (L) No.25020 of 2023 on lodging number. Plaintiff then filed Interim Application (L) No.29700 of 2023 seeking amendment of plaint. The application was heard and allowed on 10 January 2024.

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High Court Bombay High Court Allows Amendment of Plaint to Correct Clerical Error in Loan Agreement Exhibit. Court permits substitution of wrong document with correct agreement reflecting 12.5% interest instead of 1% as agreed between parties.
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