Bombay High Court Allows Amendment of Decree to Correct Name of Judgment Debtor and Sets Aside Attachment of Third Party's Property. Decree holder permitted to amend arbitration award and decree to substitute 'M/s. Sarju International' with 'M/s. Sarju International Ltd.' as the correct judgment debtor; attachment of bank account and property belonging to the third party applicant set aside as they were not the judgment debtor.

High Court: Bombay High Court
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Case Note & Summary

The judgment concerns two chamber summonses arising out of an execution application. The first chamber summons was taken out by the decree holder, M/s. Manmohan Exims Pvt. Ltd., seeking amendment of the pleadings in Arbitration Case No. L/160/2001-2002 and the award/decree passed therein to correct the name of the respondent from 'M/s. Sarju International' to 'M/s. Sarju International Ltd.' The second chamber summons was taken out by M/s. Sarju International Ltd., a third party, seeking to set aside the warrant of attachment dated 1.10.2003 attaching its bank account with Canara Bank and its property 'Sarju House' in Andheri, Mumbai. The court heard counsel for both sides. The court allowed the amendment sought by the decree holder, holding that the misdescription of the judgment debtor could be corrected. Consequently, the court set aside the attachment of the third party's property, as the attachment was against a different entity. The court did not provide detailed reasoning in the oral judgment but granted the reliefs as prayed.

Headnote

A) Civil Procedure - Amendment of Decree - Misdescription of Party - Order 6 Rule 17, Section 152 Code of Civil Procedure, 1908 - The decree holder sought to amend the arbitration award and decree to correct the name of the judgment debtor from 'M/s. Sarju International' to 'M/s. Sarju International Ltd.' on the ground that the original name was a misdescription. The court allowed the amendment, holding that the power to amend pleadings and decrees to correct mistakes is inherent and can be exercised to ensure that the real controversy is adjudicated. (Paras 1-3)

B) Civil Procedure - Attachment of Property - Third Party Rights - Order 21 Rule 58, Section 47 Code of Civil Procedure, 1908 - The third party applicant, M/s. Sarju International Ltd., sought setting aside of attachment of its bank account and property, contending that it was not the judgment debtor. The court held that since the decree was against 'M/s. Sarju International' and not the applicant, the attachment of the applicant's property was illegal and liable to be set aside. (Paras 2-4)

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Issue of Consideration

Whether the decree holder can amend the arbitration award and decree to correct the name of the judgment debtor from 'M/s. Sarju International' to 'M/s. Sarju International Ltd.' and whether the attachment of property belonging to a third party (M/s. Sarju International Ltd.) is valid.

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Final Decision

The court allowed Chamber Summons No.1030 of 2004, permitting the decree holder to amend the pleadings and award/decree to correct the name of the respondent from 'M/s. Sarju International' to 'M/s. Sarju International Ltd.' The court also allowed Chamber Summons No.1489 of 2003, setting aside the warrant of attachment dated 1.10.2003 attaching the bank account and property of M/s. Sarju International Ltd.

Law Points

  • Amendment of decree to correct misdescription of party
  • Order 6 Rule 17 CPC
  • Section 152 CPC
  • Attachment of property of third party
  • Order 21 Rule 58 CPC
  • Section 47 CPC
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Case Details

2005 LawText (BOM) (09) 35

Chamber Summons No.1030 of 2004 in Execution Application No.373 of 2003 in Arbitration Case No.L/160/2001-2002

2005-09-09

A.M. Khanwilkar

Mr. Kamal Katna i/b. M/s. Thakordas & Madgaonkar for the applicants, Mr. V.R. Walavalkar i/b. Mr. Rakesh Jain for the plaintiffs

M/s. Manmohan Exims Pvt. Ltd.

M/s. Sarju International

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Nature of Litigation

Execution proceedings arising out of an arbitration award.

Remedy Sought

The decree holder sought amendment of the arbitration award and decree to correct the name of the judgment debtor. The third party sought setting aside of attachment of its property.

Filing Reason

The decree holder claimed that the judgment debtor was incorrectly named as 'M/s. Sarju International' instead of 'M/s. Sarju International Ltd.' The third party claimed that its property was wrongly attached as it was not the judgment debtor.

Previous Decisions

An arbitration award and decree were passed against 'M/s. Sarju International'. Execution application was filed and warrant of attachment was issued against property of 'M/s. Sarju International Ltd.'

Issues

Whether the decree holder can amend the arbitration award and decree to correct the name of the judgment debtor from 'M/s. Sarju International' to 'M/s. Sarju International Ltd.'? Whether the attachment of property belonging to M/s. Sarju International Ltd. is valid when the decree is against M/s. Sarju International?

Submissions/Arguments

The decree holder argued that the name 'M/s. Sarju International' was a misdescription and should be corrected to 'M/s. Sarju International Ltd.' The third party argued that it is a separate entity and its property cannot be attached for a decree against a different entity.

Ratio Decidendi

The court has inherent power to amend pleadings and decrees to correct misdescription of parties. Attachment of property of a third party who is not the judgment debtor is illegal and must be set aside.

Judgment Excerpts

Heard the counsel for the parties. Perused the pleadings. The Chamber summons taken out by the petitioner is for the following reliefs: a) that the petitioner may be permitted to amend the pleadings in Arbitration Case No.L/160/2001-2002 and award/Decree passed therein against the Respondent namely, M/s.Sarju International Ltd. wrongly mentioned as M/s.Sarju International.

Procedural History

An arbitration award was passed in Arbitration Case No. L/160/2001-2002. The decree holder filed Execution Application No. 373 of 2003. During execution, a warrant of attachment was issued against property of M/s. Sarju International Ltd. The decree holder then filed Chamber Summons No. 1030 of 2004 seeking amendment of the award and decree. M/s. Sarju International Ltd. filed Chamber Summons No. 1489 of 2003 seeking to set aside the attachment. Both chamber summonses were heard together and disposed of by this judgment.

Acts & Sections

  • Code of Civil Procedure, 1908: Order 6 Rule 17, Section 152, Order 21 Rule 58, Section 47
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