Bombay High Court Allows Amendment of Written Statement in Commercial Suit — Defendant No.4 Granted Leave to Amend Defence to Include Additional Grounds of Challenge to Agreement. Court holds that amendments to written statement are permissible under Order VI Rule 17 CPC even after commencement of trial, provided no prejudice is caused to the plaintiff, and that the test for allowing amendment is more liberal for written statements than for plaints.

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

The present chamber summons was filed by Defendant No.4, Sahrish Constructions Private Limited, seeking leave to amend its written statement in a commercial suit pending before the Bombay High Court. The suit was filed by the plaintiffs, EMCIPI Electronics Private Limited and Ramkishan Singh, against six defendants, including the applicant, seeking specific performance of an agreement dated 30th June 2015. The trial had already commenced, and the applicant sought to incorporate additional grounds challenging the validity and enforceability of the agreement. The plaintiffs opposed the amendment, arguing that it would change the nature of the defence and cause prejudice. The court, after hearing the parties, held that amendments to written statements are governed by a more liberal test than amendments to plaints. The court found that the proposed amendments did not introduce a new case or cause irreparable prejudice to the plaintiffs. The court allowed the chamber summons, granting leave to amend the written statement, subject to payment of costs of Rs. 25,000 to the plaintiffs. The court directed that the amended written statement be filed within two weeks and that the plaintiffs would be entitled to file an additional replication, if necessary. The court also clarified that the amendment would not affect the trial schedule and that the suit would proceed accordingly.

Headnote

A) Civil Procedure - Amendment of Written Statement - Order VI Rule 17 CPC - Liberal Approach - The court considered whether a defendant should be allowed to amend its written statement after trial had commenced. The court held that amendments to written statements are governed by a more liberal test than amendments to plaints, and that the court should allow such amendments unless they cause irreparable prejudice to the plaintiff or are mala fide. The court found that the proposed amendments did not change the nature of the defence and were necessary for determining the real controversy. (Paras 1-10)

B) Commercial Suit - Amendment of Pleadings - Section 16 of the Commercial Courts Act, 2015 - The court noted that the suit was a commercial suit and that the provisions of the CPC apply. The court held that the amendment sought was within the scope of Order VI Rule 17 and did not require any fresh cause of action. The court allowed the amendment subject to payment of costs of Rs. 25,000 to the plaintiff. (Paras 1-10)

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Issue of Consideration

Whether the applicant (Defendant No.4) should be permitted to amend its written statement to incorporate additional grounds challenging the agreement dated 30th June 2015, after the commencement of trial.

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Final Decision

The court allowed the chamber summons, granting leave to amend the written statement subject to payment of costs of Rs. 25,000 to the plaintiffs. The amended written statement to be filed within two weeks. Plaintiffs entitled to file additional replication within two weeks thereafter.

Law Points

  • Amendment of written statement
  • Order VI Rule 17 CPC
  • liberal approach for written statement amendments
  • no prejudice to plaintiff
  • commercial suit
  • leave to amend
  • additional grounds of defence
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Case Details

2019 LawText (BOM) (02) 48

Chamber Summons (Lodging) No.220 of 2019 in Suit No.932 of 2016

2019-02-06

R.D. Dhanuka, J.

Mr.A.M. Dhar I/b Mr.Yuvraj Patil for the Plaintiffs, Ms.Aditi Naikare I/b Mr.Pradeep Thorat for the Defendant Nos.1 to 3, Mr.Atul Daga with Mr.Deepak Jojo I/b Wadia Ghandy & Co. for the Defendant Nos.4 to 6

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Nature of Litigation

Chamber summons seeking amendment of written statement in a commercial suit for specific performance of an agreement.

Remedy Sought

Defendant No.4 sought leave to amend its written statement to incorporate additional grounds challenging the agreement dated 30th June 2015.

Filing Reason

The applicant (Defendant No.4) wanted to add new grounds of defence after the commencement of trial.

Issues

Whether the applicant should be permitted to amend its written statement after commencement of trial. Whether the proposed amendments would cause prejudice to the plaintiffs or change the nature of the defence.

Submissions/Arguments

The applicant argued that the amendments were necessary to bring the real controversy before the court and did not change the nature of the defence. The plaintiffs opposed the amendment, contending that it would cause prejudice and was an attempt to delay the trial.

Ratio Decidendi

Amendments to written statements are governed by a more liberal test than amendments to plaints. The court should allow such amendments unless they cause irreparable prejudice to the plaintiff or are mala fide. The proposed amendments did not change the nature of the defence and were necessary for determining the real controversy.

Judgment Excerpts

The chamber summons is not on board. Taken on board by consent of parties. By this chamber summons, the applicant seeks an order to amend the written statement.

Procedural History

The chamber summons was filed in a pending commercial suit (Suit No.932 of 2016) for specific performance. The trial had commenced. The applicant (Defendant No.4) sought to amend its written statement. The chamber summons was taken on board by consent and heard on 6th February 2019.

Acts & Sections

  • Code of Civil Procedure, 1908 (CPC): Order VI Rule 17
  • Commercial Courts Act, 2015: Section 16
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