Bombay High Court Allows Amendment in Specific Performance Suit Despite Earlier Rejection — Change in Compensation Amount Constitutes New Fact. The court held that a subsequent enhancement of compensation by the Arbitrator is a change in circumstances justifying a fresh amendment application under Order VI Rule 17 CPC.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Accused
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Case Note & Summary

The petitioner/plaintiff filed a suit for specific performance of an agreement to sale dated 07.04.2007 for land admeasuring 1H 98R. During pendency, 4800 sq. meters of suit land was acquired by National Highway Authority and compensation of Rs.10,56,000/- was determined. The plaintiff filed an amendment application at Exhibit-12 to incorporate the compensation amount, which was rejected on 05.08.2011 and remained unchallenged. Subsequently, the Additional Divisional Commissioner cum Arbitrator enhanced the compensation to Rs.72,24,356/- vide order dated 06.12.2018. The plaintiff filed another amendment application at Exhibit-103 seeking to incorporate the enhanced amount. The Trial Court rejected it on 09.12.2020 on the ground that similar amendment was earlier rejected. The High Court held that the earlier rejection was based on the compensation amount of Rs.10,56,000/-, but the subsequent enhancement to Rs.72,24,356/- constitutes a change in circumstances. The court observed that the amendment is necessary for effective adjudication and allowed the petition, setting aside the impugned order and permitting the amendment subject to costs of Rs.5,000/-.

Headnote

A) Civil Procedure - Amendment of Pleadings - Order VI Rule 17 CPC - Res Judicata - Change in Circumstances - The plaintiff sought amendment to incorporate enhanced compensation amount determined after earlier rejection of similar amendment - Held that the subsequent enhancement of compensation by the Arbitrator constitutes a change in circumstances, making the second amendment application maintainable despite earlier rejection (Paras 5-7).

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Issue of Consideration

Whether a second application for amendment of plaint seeking to incorporate enhanced compensation amount is barred by res judicata when a similar amendment was earlier rejected.

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Final Decision

The High Court allowed the writ petition, set aside the impugned order dated 09.12.2020, and permitted the amendment subject to payment of costs of Rs.5,000/- to the respondent.

Law Points

  • Amendment of pleadings
  • Order VI Rule 17 CPC
  • Res judicata
  • Change in circumstances
  • New cause of action
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Case Details

2022 LawText (BOM) (11) 8

Writ Petition No.1661 of 2021

2022-11-29

Sandeep V. Marne

Mr. Shailesh P. Brahme for Petitioner, Mr. A. S. Sawant for Respondent

Mohammad Iqbal Yakubji

Hari Shankar Mokale

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Nature of Litigation

Civil writ petition challenging rejection of amendment application in a suit for specific performance of agreement to sale.

Remedy Sought

Petitioner/plaintiff sought to amend plaint to incorporate enhanced compensation amount determined by Arbitrator.

Filing Reason

The Trial Court rejected the second amendment application on ground that similar amendment was earlier rejected.

Previous Decisions

Earlier amendment application (Exhibit-12) was rejected on 05.08.2011 and remained unchallenged.

Issues

Whether the second amendment application is barred by res judicata due to earlier rejection of similar amendment. Whether change in compensation amount constitutes a change in circumstances justifying fresh amendment.

Submissions/Arguments

Petitioner argued that the enhanced compensation amount is a new fact and the amendment is necessary for effective adjudication. Respondent contended that the amendment is based on same set of facts and earlier rejection operates as res judicata.

Ratio Decidendi

A subsequent enhancement of compensation by the Arbitrator constitutes a change in circumstances, making a second amendment application maintainable despite earlier rejection of a similar amendment. The principle of res judicata does not bar amendment when new facts have arisen.

Judgment Excerpts

The earlier amendment application was rejected on 05.08.2011 and the order remained unchallenged. The compensation amount was enhanced from Rs.10,56,000/- to Rs.72,24,356/- as per order dated 06.12.2018. The Trial Court rejected the second amendment application on the ground that similar amendment was earlier rejected. The subsequent enhancement of compensation by the Arbitrator constitutes a change in circumstances. The amendment is necessary for effective adjudication of the suit.

Procedural History

Suit for specific performance filed. First amendment application (Exhibit-12) rejected on 05.08.2011. Compensation enhanced by Arbitrator on 06.12.2018. Second amendment application (Exhibit-103) rejected on 09.12.2020. Writ petition filed challenging the rejection.

Acts & Sections

  • Code of Civil Procedure, 1908 (CPC): Order VI Rule 17
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