Bombay High Court Dismisses Revocation of Leave Under Clause 12 Letters Patent and Allows Amendment to Plaint on Jurisdiction. Court holds that jurisdiction is determined by plaint averments as a whole and subsequent amendment cannot cure lack of jurisdiction at the time of filing.

High Court: Bombay High Court
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Case Note & Summary

The plaintiff, Infrastructure Leasing & Financial Services Limited, filed a suit in the Bombay High Court for recovery of Rs. 3,72,87,086/- with interest against DSQ Holding Ltd. and others. The defendants took out Chamber Summons No. 1759 of 2003 seeking revocation of leave granted under Clause 12 of the Letters Patent, arguing that no part of the cause of action arose within the court's jurisdiction. The plaintiff took out Chamber Summons No. 139 of 2004 seeking amendment of paragraph 23 of the plaint to add averments regarding jurisdiction. The court considered both summons together, noting that if the court had jurisdiction at the time of filing, the defendants' summons would fail; if not, the plaintiff's amendment would be ineffective. The court examined the plaint averments and found that the suit was for recovery of money lent and advanced, and the loan agreement was executed in Mumbai, which is within the court's jurisdiction. Therefore, the court held that it had jurisdiction and dismissed the defendants' summons for revocation of leave. Consequently, the plaintiff's amendment was allowed as it was not necessary to cure any defect. The court emphasized that jurisdiction is determined by the plaint as a whole and subsequent amendment cannot confer jurisdiction retrospectively.

Headnote

A) Civil Procedure - Jurisdiction - Clause 12 Letters Patent - Determination of jurisdiction - The court must examine the plaint averments as a whole to determine if any part of the cause of action arose within its jurisdiction. If no part of the cause of action arose within jurisdiction, leave under Clause 12 cannot be granted. (Paras 1-3)

B) Civil Procedure - Amendment of Plaint - Jurisdictional Averments - Subsequent amendment cannot confer jurisdiction retrospectively - If the court lacked jurisdiction at the time of filing, an amendment adding jurisdictional facts cannot cure the defect. (Paras 1-3)

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Issue of Consideration

Whether the Court had jurisdiction to entertain the suit as on the date of filing and obtaining leave under Clause 12 of the Letters Patent, and whether subsequent amendment to the plaint can cure lack of jurisdiction.

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Final Decision

Chamber Summons No. 1759 of 2003 (defendants' summons for revocation of leave) is dismissed. Chamber Summons No. 139 of 2004 (plaintiff's amendment) is allowed.

Law Points

  • Jurisdiction under Clause 12 Letters Patent
  • Determination of jurisdiction based on plaint averments
  • Amendment of plaint to cure jurisdictional defects
  • Revocation of leave for lack of jurisdiction
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Case Details

2005 LawText (BOM) (03) 18

Chamber Summons No. 1759 of 2003 and Chamber Summons No. 139 of 2004 in Suit No. 3086 of 2003

2005-03-09

S.U. Kamdar, J.

Mr. A.K. Abhyankar with Ms. Hemani Jhariya for Defendant Nos. 1 & 2; Mr. Virag V. Tulzapurkar i/by Negandhi Shah & Himaytullah for plaintiff

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Nature of Litigation

Civil suit for recovery of money and declaration

Remedy Sought

Plaintiff seeks recovery of Rs. 3,72,87,086/- with interest and declaration that amount is due

Filing Reason

Recovery of loan amount

Issues

Whether the Bombay High Court had jurisdiction to entertain the suit as on the date of filing and obtaining leave under Clause 12 of the Letters Patent? Whether the plaintiff can amend the plaint to add jurisdictional averments to cure lack of jurisdiction?

Submissions/Arguments

Defendants argued that no part of cause of action arose within Bombay jurisdiction, hence leave should be revoked. Plaintiff argued that the loan agreement was executed in Mumbai, giving jurisdiction, and sought amendment to clarify.

Ratio Decidendi

Jurisdiction of the court under Clause 12 of the Letters Patent is determined by the plaint averments as a whole. If any part of the cause of action arises within the court's jurisdiction, leave can be granted. Subsequent amendment cannot confer jurisdiction retrospectively if it was lacking at the time of filing.

Judgment Excerpts

If this Court had jurisdiction then consequently Chamber Summons No. 1759 of 2003 must fail and if this Court had no jurisdiction as on the date of the filing of the suit then Chamber Summons No. 139 of 2004 must succeed and the leave has to be revoked. If there was no jurisdiction to the Court on the date of the filing of the suit then by virtue of subsequent amendment in paragraph 23 of the plaint which deals with jurisdictional issue, the plaintiff cannot add the averments so as to give this Court jurisdiction which was not existing as on the date when leave was obtained under clause 12 of the Letters Patent.

Procedural History

Plaintiff filed Suit No. 3086 of 2003 for recovery. Defendants took out Chamber Summons No. 1759 of 2003 for revocation of leave under Clause 12. Plaintiff took out Chamber Summons No. 139 of 2004 for amendment of plaint. Both summons heard together.

Acts & Sections

  • Letters Patent (Bombay): Clause 12
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