Bombay High Court Allows Amendment of Written Statement in Commercial Suit — Defendant No.4 Permitted to Amend Pleadings to Include Defence of Non-Maintainability Due to Lack of Cause of Action. Amendment Sought to Add Preliminary Objection That Suit Is Not Maintainable as No Cause of Action Arose Within Territorial Jurisdiction of the Court Under Section 16 of the Code of Civil Procedure, 1908.

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

The judgment concerns a Chamber Summons filed by Defendant No.4 (Sahrish Constructions Private Limited) in a commercial suit (Suit No.932 of 2016) pending before the Bombay High Court. The plaintiffs, EMCIPI Electronics Private Limited and Ramkishan Singh, had filed the suit against six defendants, including the applicant. The applicant sought leave to amend its written statement to incorporate a preliminary objection that the suit was not maintainable for want of cause of action within the territorial jurisdiction of the Bombay High Court. The plaintiffs opposed the amendment, arguing that it was belated and would cause prejudice. The Court, after hearing the parties, allowed the amendment subject to payment of costs of Rs. 10,000 to the plaintiffs. The Court reasoned that the amendment raised a pure question of law regarding territorial jurisdiction, which was necessary for determining the real question in controversy. The Court noted that no prejudice would be caused to the plaintiffs as they could file a rejoinder to the amended written statement. The Court also observed that the plaintiffs had not filed any rejoinder to the original written statement. The amendment was allowed to avoid multiplicity of proceedings. The Court directed that the amended written statement be filed within two weeks and that the plaintiffs file a rejoinder within four weeks thereafter.

Headnote

A) Civil Procedure - Amendment of Pleadings - Order VI Rule 17 of the Code of Civil Procedure, 1908 - Leave to amend written statement - The applicant sought to add a preliminary objection that the suit was not maintainable as no cause of action arose within the territorial jurisdiction of the Bombay High Court. The Court held that the amendment was necessary for determining the real question in controversy and that no prejudice would be caused to the plaintiffs as they could file a rejoinder. The amendment was allowed subject to costs of Rs. 10,000. (Paras 1-10)

B) Commercial Suit - Cause of Action - Territorial Jurisdiction - Section 16 of the Code of Civil Procedure, 1908 - The proposed amendment raised a pure question of law regarding territorial jurisdiction. The Court noted that the plaintiffs had not filed any rejoinder to the original written statement and could do so now. The amendment was allowed to avoid multiplicity of proceedings. (Paras 5-10)

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Issue of Consideration

Whether the applicant (Defendant No.4) should be permitted to amend its written statement to incorporate a defence that the suit is not maintainable for want of cause of action within the territorial jurisdiction of this Court.

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Final Decision

The Chamber Summons is allowed. The applicant is permitted to amend the written statement as per the draft annexed to the chamber summons. The amended written statement shall be filed within two weeks from today. The plaintiffs are at liberty to file a rejoinder within four weeks thereafter. The applicant shall pay costs of Rs. 10,000 to the plaintiffs within two weeks.

Law Points

  • Amendment of pleadings
  • Order VI Rule 17 CPC
  • cause of action
  • territorial jurisdiction
  • commercial suit
  • prejudice
  • delay
  • latches
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Case Details

2019 LawText (BOM) (03) 68

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

Sahrish Constructions Private Limited (Defendant No.4)

EMCIPI Electronics Private Limited and Ramkishan Singh (Plaintiffs)

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Nature of Litigation

Chamber summons seeking amendment of written statement in a commercial suit.

Remedy Sought

The applicant (Defendant No.4) sought leave to amend its written statement to incorporate a preliminary objection that the suit is not maintainable for want of cause of action within the territorial jurisdiction of the Bombay High Court.

Filing Reason

The applicant wanted to raise a defence that no cause of action arose within the territorial jurisdiction of the court, which was not pleaded earlier.

Issues

Whether the applicant should be permitted to amend its written statement to incorporate a defence that the suit is not maintainable for want of cause of action within the territorial jurisdiction of this Court.

Submissions/Arguments

The applicant argued that the amendment was necessary to raise a pure question of law regarding territorial jurisdiction and that no prejudice would be caused to the plaintiffs. The plaintiffs opposed the amendment, contending that it was belated and would cause prejudice.

Ratio Decidendi

Amendment of pleadings under Order VI Rule 17 CPC should be liberally allowed if it is necessary for determining the real question in controversy and does not cause prejudice to the opposite party. A pure question of law, such as territorial jurisdiction, can be raised by way of amendment even at a later stage to avoid multiplicity of proceedings.

Judgment Excerpts

By this chamber summons, the applicant seeks an order to amend the written statement filed by the applicant. The amendment is necessary for determining the real question in controversy between the parties. No prejudice would be caused to the plaintiffs as they can file a rejoinder to the amended written statement.

Procedural History

The suit was filed in 2016. The applicant (Defendant No.4) filed a written statement. Subsequently, the applicant filed Chamber Summons (Lodging) No.220 of 2019 seeking amendment of the written statement. The chamber summons was taken on board by consent of parties and heard on 6th February 2019.

Acts & Sections

  • Code of Civil Procedure, 1908: Order VI Rule 17, Section 16
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