Bombay High Court Allows Amendment of Written Statement to Include Counterclaim in Specific Performance Suit — No Bar Under Order VIII Rule 6A CPC for Counterclaim Arising After Filing Suit. The court held that a counterclaim arising after the suit but before filing of written statement can be introduced by amendment under Order VI Rule 17 CPC, and such counterclaim is not barred by limitation if filed within three years under Article 113 of the Limitation Act, 1963.

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

The petitioner, Mrs. Ivy Muriet Fonseca, was the defendant in Special Civil Suit No. 85/2001/C filed by the respondent, Mr. Porus Adi Dotor, seeking specific performance of an agreement of sale. The petitioner filed an application for amendment of her written statement dated 25.11.2002, seeking to introduce a counterclaim for specific performance of the same agreement. The trial court partly allowed the amendment by order dated 20.12.2003, but rejected the counterclaim portion. The petitioner challenged that rejection in Writ Petition No.125/2004, which was allowed by this Court on 17.6.2004, directing the trial court to reconsider the amendment application. The trial court then passed the impugned order dated 19.8.2004, again rejecting the counterclaim on the ground that it was barred by limitation and that Order VIII Rule 6A CPC does not permit a counterclaim that arises after the suit. The petitioner filed the present writ petition challenging that order. The High Court held that Order VIII Rule 6A CPC does not bar a counterclaim that arises after the filing of the suit; it only requires that the counterclaim be one which the defendant could have filed at the time of filing the written statement. Since the counterclaim arose before the written statement was filed, it was permissible. The court also held that the counterclaim was not barred by limitation as it was filed within three years of the alleged refusal to perform, under Article 113 of the Limitation Act, 1963. The court allowed the writ petition, set aside the trial court's order, and directed that the amendment be allowed in its entirety.

Headnote

A) Civil Procedure - Amendment of Pleadings - Counterclaim - Order VIII Rule 6A, Order VI Rule 17, Code of Civil Procedure, 1908 - The court considered whether a counterclaim arising after the suit but before filing of written statement can be introduced by amendment. Held that Order VIII Rule 6A does not bar a counterclaim that arises after the suit, and the amendment can be allowed under Order VI Rule 17 if necessary for determining the real controversy. The court allowed the amendment, setting aside the trial court's order which had rejected part of the amendment. (Paras 2-10)

B) Limitation - Counterclaim - Article 113, Limitation Act, 1963 - The court held that the counterclaim for specific performance of an agreement of sale is governed by Article 113 of the Limitation Act, which provides a period of three years from the date when the right to sue accrues. Since the counterclaim was filed within three years of the alleged refusal to perform, it was not barred by limitation. (Paras 11-12)

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Issue of Consideration

Whether a counterclaim which arises after the filing of the suit but before the defendant has filed his written statement can be introduced by way of amendment of the written statement, and whether such amendment is barred by limitation or by the provisions of Order VIII Rule 6A of the Code of Civil Procedure, 1908.

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Final Decision

Writ petition allowed. Impugned order dated 19.8.2004 set aside. The trial court is directed to allow the amendment application in its entirety, including the counterclaim.

Law Points

  • Amendment of pleadings
  • Counterclaim
  • Order VIII Rule 6A CPC
  • Order VI Rule 17 CPC
  • Specific Relief Act
  • 1963
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Case Details

2005 LawText (BOM) (01) 138

Writ Petition No. 520 / 2004

2005-01-20

A.P. Lavande, J.

Mr. S.D. Lotlikar, Senior Advocate with Mr. R.S. Sardesai, Advocate for the petitioner; Mr. Anthony D'Silva, Advocate for the respondent

Mrs. Ivy Muriet Fonseca

Mr. Porus Adi Dotor

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Nature of Litigation

Civil writ petition challenging trial court order rejecting amendment of written statement to include counterclaim for specific performance.

Remedy Sought

Petitioner sought to amend her written statement to include a counterclaim for specific performance of the same agreement of sale.

Filing Reason

Trial court rejected the counterclaim portion of the amendment application on grounds of limitation and that Order VIII Rule 6A CPC does not permit a counterclaim arising after the suit.

Previous Decisions

Trial court partly allowed amendment on 20.12.2003 but rejected counterclaim; High Court in Writ Petition No.125/2004 on 17.6.2004 directed reconsideration; trial court again rejected counterclaim on 19.8.2004.

Issues

Whether a counterclaim arising after the filing of the suit but before the filing of the written statement can be introduced by way of amendment under Order VI Rule 17 CPC? Whether such counterclaim is barred by limitation under Article 113 of the Limitation Act, 1963?

Submissions/Arguments

Petitioner argued that Order VIII Rule 6A does not bar a counterclaim that arises after the suit, and the amendment is necessary for determining the real controversy. Respondent argued that the counterclaim is barred by limitation and that Order VIII Rule 6A only permits counterclaims that existed at the time of filing the suit.

Ratio Decidendi

Order VIII Rule 6A CPC does not bar a counterclaim that arises after the filing of the suit, provided it is filed before the defendant files his written statement. Such a counterclaim can be introduced by amendment under Order VI Rule 17 CPC if it is necessary for the determination of the real controversy. The counterclaim for specific performance is governed by Article 113 of the Limitation Act, 1963, and is not barred if filed within three years of the accrual of the right to sue.

Judgment Excerpts

Order VIII Rule 6A does not bar a counterclaim which arises after the filing of the suit. The counterclaim is governed by Article 113 of the Limitation Act, 1963, and the period of three years begins from the date when the right to sue accrues.

Procedural History

Respondent filed Special Civil Suit No. 85/2001/C for specific performance. Petitioner filed amendment application on 25.11.2002 to include counterclaim. Trial court partly allowed amendment on 20.12.2003, rejecting counterclaim. Petitioner challenged in Writ Petition No.125/2004, which was allowed on 17.6.2004 directing reconsideration. Trial court again rejected counterclaim on 19.8.2004. Petitioner filed present writ petition on 20.1.2005.

Acts & Sections

  • Code of Civil Procedure, 1908: Order VIII Rule 6A, Order VI Rule 17
  • Limitation Act, 1963: Article 113
  • Specific Relief Act, 1963:
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