Bombay High Court Allows Appeal Against Dismissal of Amendment Application - Article 137 of Limitation Act Does Not Apply to Amendment of Pleadings Under Order 6 Rule 17 CPC. The court held that the right to apply for amendment arises when the need is discovered, not on filing of written statement, and allowed the amendment to avoid multiplicity of proceedings.

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

The appeal arose from an order of the Learned Single Judge of the Bombay High Court dismissing a Chamber Summons for amendment of the written statement as barred by limitation under Article 137 of the Limitation Act, 1963. The suit was instituted in 1998 by the Respondents (Plaintiffs) seeking declarations regarding shares and immovable property. The Appellants (Defendants) filed their written statement on 20 November 2006. On 19 January 2010, they filed a Chamber Summons seeking to amend the written statement. The Learned Single Judge held that Article 137 applies to applications for amendment of pleadings and that the right to apply arose on the day following the filing of the written statement, i.e., 21 November 2006. Since the application was filed beyond three years, it was dismissed as time-barred, though the Judge noted that but for the limitation bar, he would have allowed the amendment. The Defendants appealed, and the Plaintiffs filed cross-objections against the observation that the amendment would have been allowed. The Division Bench reversed the Single Judge's decision, holding that Article 137 does not apply to applications for amendment of pleadings under Order 6 Rule 17 CPC. The court reasoned that the right to apply for amendment arises when the need for amendment is discovered, not on the date of filing the written statement. The amendment sought to explain existing facts and did not introduce new facts. The court allowed the amendment to avoid multiplicity of proceedings and to do complete justice between the parties, setting aside the order of the Learned Single Judge and allowing the Chamber Summons.

Headnote

A) Civil Procedure - Amendment of Pleadings - Limitation - Article 137 of Limitation Act, 1963 does not apply to applications for amendment of pleadings under Order 6 Rule 17 CPC - The court held that the right to apply for amendment arises when the need for amendment is discovered, not on the date of filing the written statement - The application for amendment was filed within reasonable time and was not barred by limitation - Held that the Learned Single Judge erred in applying Article 137 to the amendment application (Paras 2-14).

B) Civil Procedure - Amendment of Written Statement - Multiplicity of Proceedings - Order 6 Rule 17 CPC - The court allowed the amendment to avoid multiplicity of proceedings and to do complete justice between the parties - The amendment sought to explain existing facts and did not introduce new facts - Held that the amendment should be allowed as it would not cause prejudice to the opposite party (Paras 15-18).

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Issue of Consideration

Whether Article 137 of the Limitation Act, 1963 applies to an application for amendment of pleadings under Order 6 Rule 17 of the Code of Civil Procedure, 1908, and if so, whether the Chamber Summons for amendment of the written statement was barred by limitation.

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Final Decision

The appeal is allowed. The order of the Learned Single Judge dated 7 December 2011 is set aside. The Chamber Summons No.106 of 2010 is allowed. The Appellants are permitted to amend the written statement in terms of the draft amendment annexed to the Chamber Summons. The amendment shall be carried out within four weeks. The cross-objections are dismissed.

Law Points

  • Article 137 of Limitation Act
  • 1963 does not apply to applications for amendment of pleadings under Order 6 Rule 17 CPC
  • Amendment of written statement can be allowed at any stage to avoid multiplicity of proceedings
  • Right to apply for amendment arises when the need for amendment is discovered
  • not on filing of written statement
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Case Details

2013 LawText (BOM) (02) 38

APPEAL NO.200 OF 2012 IN CHAMBER SUMMONS NO.106 OF 2010 IN SUIT NO.2256 OF 1998 WITH CROL NO.4 OF 2012

2013-02-27

Dr. D.Y. Chandrachud, A.A. Sayed

Mr. Dinyar D. Madon, Senior Advocate with Mr. Mayur Khandeparkar, Mr. Girish Kedia and Mr. M. Agre for the Appellants; Ms. Sonal i/b. Goenka Law Associates for the Respondents.

Mr. Vijay Agarwal & Ors.

Harinarayan G. Bajaj & Ors.

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Nature of Litigation

Civil appeal against order dismissing Chamber Summons for amendment of written statement as barred by limitation.

Remedy Sought

The Appellants (Defendants) sought amendment of their written statement to explain existing facts.

Filing Reason

The Chamber Summons was filed because the Appellants needed to amend their written statement to clarify certain facts already on record.

Previous Decisions

The Learned Single Judge dismissed the Chamber Summons as barred by limitation under Article 137 of the Limitation Act, 1963, but noted that but for the bar, he would have allowed the amendment.

Issues

Whether Article 137 of the Limitation Act, 1963 applies to an application for amendment of pleadings under Order 6 Rule 17 of the Code of Civil Procedure, 1908. Whether the Chamber Summons for amendment of the written statement was barred by limitation. Whether the amendment should be allowed on merits.

Submissions/Arguments

The Appellants argued that Article 137 does not apply to applications for amendment of pleadings and that the right to apply arises when the need for amendment is discovered, not on the date of filing the written statement. The Respondents argued that the application was barred by limitation as it was filed beyond three years from the date of filing the written statement.

Ratio Decidendi

Article 137 of the Limitation Act, 1963 does not apply to applications for amendment of pleadings under Order 6 Rule 17 of the Code of Civil Procedure, 1908. The right to apply for amendment arises when the need for amendment is discovered, not on the date of filing the written statement. Amendment of pleadings should be allowed to avoid multiplicity of proceedings and to do complete justice between the parties, provided no prejudice is caused to the opposite party.

Judgment Excerpts

Article 137 of the Schedule to the Limitation Act applies to all applications made to a civil court. The question is whether an application for amendment of pleadings is an application within the meaning of Article 137. The right to apply for amendment of a written statement arises when the need for amendment is discovered, not on the date of filing the written statement. The amendment sought to explain existing facts and did not introduce new facts. The Learned Single Judge was of the view that but for the bar of limitation, he would have allowed the amendment.

Procedural History

The suit was instituted in 1998. The plaint was amended on 31 January 2006. The written statement was filed on 20 November 2006. The Chamber Summons for amendment of the written statement was filed on 19 January 2010. The Learned Single Judge dismissed the Chamber Summons on 7 December 2011. The Defendants appealed, and the Plaintiffs filed cross-objections. The Division Bench heard the appeal and cross-objections and delivered judgment on 27 February 2013.

Acts & Sections

  • Code of Civil Procedure, 1908: Order 6 Rule 17
  • Limitation Act, 1963: Article 137
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