Bombay High Court Allows Amendment of Plaint in Property Dispute — Petitioner Seeks to Add Claim for Possession and Mesne Profits After Discovery of Fraudulent Transfer During Pendency of Suit. Amendment Allowed Under Order VI Rule 17 CPC to Avoid Multiplicity of Proceedings and Bring Subsequent Events on Record.

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

The petitioner, Avinash Karnik, filed a suit in the City Civil Court at Bombay seeking declaration and injunction in respect of a flat (suit flat) originally owned by his father. After the father's death, the flat was transferred to the mother pursuant to a Will. The mother nominated respondent no.2 (son of respondent no.1) as nominee in the society records. The mother died in 2005. The petitioner claimed that since the mother's death, the suit flat was lying vacant and respondent no.1 (brother) was in possession. In September 2007, the petitioner discovered that during the pendency of the suit, respondent no.1 had fraudulently transferred the suit flat to respondent no.2 (his son) by executing a deed of assignment. The petitioner filed a Chamber Summons seeking amendment of the plaint to incorporate these subsequent events and to add reliefs for possession and mesne profits. The trial court rejected the amendment on 5th September 2015, holding that the amendment was belated and would change the nature of the suit. The petitioner challenged this order under Article 227 of the Constitution of India before the Bombay High Court. The High Court allowed the writ petition, setting aside the trial court's order. The court held that amendments to bring on record subsequent events and to avoid multiplicity of proceedings should be liberally allowed. The court found that the amendment did not change the nature of the suit as the original suit was for declaration and injunction, and the amendment sought possession and mesne profits based on the same property. The court also held that mere delay is not a ground to reject an amendment if it is necessary for the determination of the real controversy. The court directed the trial court to allow the amendment and proceed with the suit, granting costs of Rs. 5,000 to the respondents.

Headnote

A) Civil Procedure - Amendment of Pleadings - Order VI Rule 17 CPC - Subsequent Events - The petitioner sought to amend the plaint to incorporate events that occurred after the filing of the suit, including a fraudulent transfer of the suit flat by the brother during the pendency of the suit. The court held that amendments to bring on record subsequent events and to avoid multiplicity of proceedings should be liberally allowed, provided no prejudice is caused to the opposite party that cannot be compensated by costs. (Paras 1-13)

B) Civil Procedure - Amendment of Pleadings - Order VI Rule 17 CPC - Prejudice - The trial court rejected the amendment on grounds of delay and that the amendment would change the nature of the suit. The High Court held that mere delay is not a ground to reject an amendment if it is necessary for the determination of the real controversy. The court found that the amendment did not change the nature of the suit as the original suit was for declaration and injunction, and the amendment sought possession and mesne profits based on the same property. (Paras 8-13)

C) Civil Procedure - Amendment of Pleadings - Order VI Rule 17 CPC - Fraudulent Transfer - The petitioner alleged that during the pendency of the suit, the brother (respondent no.1) fraudulently transferred the suit flat to his son (respondent no.2). The court held that such subsequent events must be allowed to be pleaded to avoid multiplicity of proceedings and to enable the court to pass effective relief. (Paras 4-7)

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Issue of Consideration

Whether the trial court erred in rejecting the petitioner's application for amendment of the plaint under Order VI Rule 17 of the Code of Civil Procedure, 1908, seeking to incorporate subsequent events and additional reliefs of possession and mesne profits.

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Final Decision

The High Court allowed the writ petition, set aside the trial court's order dated 5th September 2015, and directed the trial court to allow the amendment subject to payment of costs of Rs. 5,000 to the respondents.

Law Points

  • Amendment of plaint
  • Order VI Rule 17 CPC
  • cause of action
  • fraudulent transfer
  • mesne profits
  • possession
  • delay in amendment
  • prejudice to opposite party
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Case Details

2019 LawText (BOM) (06) 63

Writ Petition No. 12509 of 2015

2019-06-03

Sandeep K. Shinde

Mr. Shailesh Dalal i/by. Dalal & Co. for petitioner; Mr. Tejas M. Bhatt a/w. Ms. Saloni C. Sathe for respondent no.2; Mr. Madhusudan R. Phal for respondent no.5

Avinash Karnik

Ajit Karnik, Sanad Ajit Karnik, Anjali V. Nevrekar, Ramgumpha Co-op Hsg. Soc. Ltd., Subhash Awasthi

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Nature of Litigation

Civil writ petition challenging rejection of amendment application in a property suit.

Remedy Sought

Petitioner sought to amend the plaint to incorporate subsequent events (fraudulent transfer of suit flat) and add reliefs for possession and mesne profits.

Filing Reason

The trial court rejected the amendment application on grounds of delay and change in nature of suit.

Previous Decisions

The trial court (City Civil Court) rejected the Chamber Summons for amendment on 5th September 2015.

Issues

Whether the trial court erred in rejecting the amendment application under Order VI Rule 17 CPC? Whether the amendment would change the nature of the suit? Whether the amendment was necessary to avoid multiplicity of proceedings?

Submissions/Arguments

Petitioner argued that the amendment was necessary to bring on record subsequent events (fraudulent transfer) and to avoid multiplicity of proceedings; no prejudice would be caused to respondents. Respondents opposed the amendment on grounds of delay and that it would change the nature of the suit.

Ratio Decidendi

Amendments to pleadings under Order VI Rule 17 CPC should be liberally allowed to bring on record subsequent events and to avoid multiplicity of proceedings, provided no prejudice is caused to the opposite party that cannot be compensated by costs. Mere delay is not a ground to reject an amendment if it is necessary for the determination of the real controversy.

Judgment Excerpts

The petitioner's Chamber Summons to amend the plaint was rejected by the Judge, City Civil Court on 5th September, 2015; against which this Writ Petition is preferred under Article 227 of the Constitution of India. It is the petitioner's case that, since his mother's death, the suit flat was lying vacant and respondent no.1 was in it's possession. Somewhere in September, 2007, defendant discovered a fact that during the pendency of the suit, defendant no.1 had fraudulently transferred the suit flat in favour of defendant no.2 by executing a deed of assignment. The trial court rejected the amendment on the ground that the amendment was belated and would change the nature of the suit. The court held that amendments to bring on record subsequent events and to avoid multiplicity of proceedings should be liberally allowed, provided no prejudice is caused to the opposite party that cannot be compensated by costs.

Procedural History

The petitioner filed a suit in the City Civil Court at Bombay seeking declaration and injunction. During pendency, the petitioner discovered a fraudulent transfer of the suit flat. The petitioner filed a Chamber Summons for amendment of the plaint, which was rejected on 5th September 2015. The petitioner then filed the present writ petition under Article 227 of the Constitution of India before the Bombay High Court.

Acts & Sections

  • Code of Civil Procedure, 1908: Order VI Rule 17
  • Constitution of India: Article 227
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