High Court Allows Amendment of Plaint by Liquidator in Suit for Recovery of Property — Newly Discovered Documents Show Ownership by Bank. The court permitted the liquidator to amend the plaint to include facts that the suit property was owned by the bank under a deed of conveyance dated 27th March 1980, holding that the amendment was necessary for the real controversy and no prejudice would be caused.

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

The Liquidator of the Maratha Market People's Co-op Bank Ltd (in liquidation) filed a Chamber Summons seeking amendment of the plaint in Suit No. 2577 of 2012. The plaintiff alleged that after filing the suit, it learned of certain documents relevant to the controversy. In March 2017, during investigations, the plaintiff discovered that the suit property was owned by the bank pursuant to a deed of conveyance dated 27th March 1980 executed between the bank and New India Assurance Company Limited. The plaintiff applied for land records on 7th June 2017, which confirmed this ownership. The plaintiff sought to amend the plaint to incorporate these new facts. The court considered the application under Order VI Rule 17 of the CPC, noting that the amendment was necessary for the determination of the real controversy and that the defendants could be compensated by costs. The court allowed the amendment, subject to payment of costs of Rs. 25,000 to the defendants, and granted the defendants time to file an additional written statement.

Headnote

A) Civil Procedure - Amendment of Plaint - Order VI Rule 17 CPC - Discovery of New Facts - The plaintiff, a liquidator, sought to amend the plaint to include facts that the suit property was owned by the bank pursuant to a deed of conveyance dated 27th March 1980, which came to light only in March 2017 during investigations. The court allowed the amendment, holding that the proposed amendment was necessary for the determination of the real controversy and that no prejudice would be caused to the defendants as they could file an additional written statement. (Paras 1-3)

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Issue of Consideration

Whether the plaintiff/liquidator should be permitted to amend the plaint to incorporate newly discovered facts and documents that show the suit property was owned by the bank.

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Final Decision

The Chamber Summons is allowed. The plaintiff is permitted to amend the plaint as per the schedule annexed to the Chamber Summons. The amendment shall be carried out within two weeks. The plaintiff shall pay costs of Rs. 25,000 to the defendants within two weeks. The defendants are granted four weeks to file an additional written statement.

Law Points

  • Amendment of plaint
  • Order VI Rule 17 CPC
  • discovery of new facts
  • due diligence
  • prejudice to opposite party
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Case Details

2019:BHC-OS:2144

Chamber Summons No. 53 of 2018 in Suit No. 2577 of 2012

2019-01-11

B.P. Colabawalla

2019:BHC-OS:2144

Mr. V. P. Sawant a/w Mr. Nikhil Patil, Ms. Tanaya Patankar, Mr. V. Kakade, Mr. P. M. Jadhav for Plaintiff/Applicant; Mr. V. C. Singh a/w Mr. Vasant Dhawan for Defendant Nos.1,2,3; Mr. Sanjay Kadam, Apeksha Sharma, Sanjil Kadam, Sayalee Rajapurkar i/b Kadam and Co for Defendant No.4

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Nature of Litigation

Civil suit for recovery of property by liquidator of a co-operative bank in liquidation.

Remedy Sought

Amendment of plaint to incorporate newly discovered facts and documents regarding ownership of suit property.

Filing Reason

The plaintiff/liquidator discovered in March 2017 that the suit property was owned by the bank under a deed of conveyance dated 27th March 1980, which was not previously pleaded.

Issues

Whether the plaintiff should be allowed to amend the plaint under Order VI Rule 17 CPC to incorporate newly discovered facts.

Submissions/Arguments

Plaintiff argued that the amendment was necessary for the real controversy and that the facts were discovered only recently despite due diligence. Defendants opposed the amendment, likely on grounds of delay or prejudice.

Ratio Decidendi

Amendment of plaint should be allowed if it is necessary for the determination of the real controversy and no prejudice is caused to the opposite party that cannot be compensated by costs.

Judgment Excerpts

This Chamber Summons has been filed by the Applicant who is the original Plaintiff seeking amendment of the plaint as per the schedule annexed to the Chamber Summons. It is the case of the Plaintiff that after filing of the present suit, the Plaintiff learnt that certain documents are relevant to the subject matter of the present suit and controversy between the parties. The Plaintiff, therefore, seeks to amend the plaint by adding certain new facts which have now come to light and are important for the outcome of the present suit.

Procedural History

The suit was filed in 2012. In March 2017, the plaintiff discovered new facts regarding ownership. On 7th June 2017, the plaintiff applied for land records. The Chamber Summons for amendment was filed in 2018. The court heard the matter and passed the order on 11th January 2019.

Acts & Sections

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