Case Note & Summary
The case involves a Second Appeal filed by the original Defendant No.4 against the judgment of the Appellate Court which allowed an amendment to the plaint seeking a declaration of co-ownership. The original suit was filed by the Respondents Nos.1 to 7 (original Plaintiffs) for specific performance of an agreement for sale dated 7th February 1973, entered into by the original Defendant No.2 on behalf of the Plaintiff-firm with the original Defendant No.1. The suit was initially filed only against Defendant No.1. Defendant No.1 claimed that on 17th June 1987, he executed a registered sale deed in favor of the Appellant (original Defendant No.4). The Plaintiffs then sought to amend the plaint to include a declaration that they were co-owners of the property. The Trial Court dismissed the amendment application, but the Appellate Court allowed it. The Appellant challenged this order in the Second Appeal. The substantial question of law was whether the amendment seeking a declaration of co-ownership was barred by limitation under Article 58 of the Limitation Act, 1963. The High Court held that the amendment introduced a new cause of action for a declaration, which was barred by limitation as the right to sue accrued on the date of the agreement (7th February 1973) or at the latest when the sale deed was executed (17th June 1987), and the amendment was sought after the expiry of three years. The Court set aside the Appellate Court's order and restored the Trial Court's order dismissing the amendment application.
Headnote
A) Limitation Act - Amendment of Pleadings - Article 58 - Bar of Limitation - The amendment sought to introduce a declaration of co-ownership in a suit for specific performance of an agreement for sale - The cause of action for the declaration arose on the date of the agreement or when the right to sue first accrued - The amendment was sought after more than three years from the date of the agreement, hence barred by limitation under Article 58 of the Limitation Act, 1963 - Held that the amendment cannot be allowed as it would introduce a new case barred by limitation (Paras 1-10).
Issue of Consideration
Whether the amendment praying for a declaration of co-ownership referred to in paragraph 10 of the Appeal Court Judgment was barred by terms under Section 58 of the Limitation Act?
Final Decision
The Second Appeal is allowed. The order of the Appellate Court dated 11th March 1988 is set aside. The order of the Trial Court dismissing the amendment application is restored.
Law Points
- Amendment seeking declaration of co-ownership is barred by limitation under Article 58 of the Limitation Act
- 1963
- when sought after expiry of three years from the date of the cause of action
- Amendment cannot be allowed to introduce a new case after limitation period has expired
