High Court of Bombay at Goa Allows Amendment of Written Statement to Include Set-Off Plea in Civil Suit — No Prejudice to Plaintiff as Issues Not Yet Framed. Amendment Sought After 7 Years of Filing Written Statement Held Permissible Under Order VI Rule 17 CPC as Trial Had Not Commenced.

High Court: Bombay High Court Bench: GOA
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Case Note & Summary

The petitioner, M/s. Reliance Enterprises, filed a writ petition challenging an order dated 30.11.2013 passed by the Civil Judge, Senior Division, Margao, in Special Civil Suit No. 137/2006. The impugned order allowed an application filed by the respondents (defendants in the suit) for amendment of their written statement to introduce a plea of set-off. The petitioner had filed the suit for recovery of money, and the respondents had filed their written statement in 2006. In 2013, the respondents sought to amend the written statement to include a claim for set-off based on a subsequent event, namely, a recovery suit filed by them against the petitioner. The petitioner opposed the amendment on the ground of delay and lack of due diligence. The trial court allowed the amendment, holding that the trial had not yet commenced and no prejudice would be caused to the petitioner. The High Court upheld the trial court's order, noting that the amendment was necessary for the determination of the real controversy between the parties. The court observed that the respondents had explained the delay by stating that the plea of set-off arose from a subsequent event. The court also noted that the petitioner would have an opportunity to file a rejoinder and lead evidence to meet the new plea. The court held that any prejudice could be compensated by costs, and therefore, the amendment was permissible under Order VI Rule 17 of the Code of Civil Procedure, 1908. The writ petition was dismissed, and the trial court was directed to expedite the suit.

Headnote

A) Civil Procedure - Amendment of Pleadings - Order VI Rule 17 of Code of Civil Procedure, 1908 - Set-off - The court considered whether an amendment to the written statement introducing a plea of set-off could be allowed after seven years of filing the written statement. The trial had not commenced and issues were not framed. The court held that since the trial had not begun, the amendment could be allowed as no prejudice would be caused to the plaintiff that could not be compensated by costs. The court emphasized that the amendment was necessary for determining the real controversy between the parties. (Paras 4-10)

B) Civil Procedure - Amendment of Pleadings - Due Diligence - Order VI Rule 17 of Code of Civil Procedure, 1908 - The court examined whether the respondents had exercised due diligence in seeking the amendment. The court found that the respondents had explained the delay by stating that the plea of set-off was based on a subsequent event, i.e., the filing of a recovery suit by the respondents against the petitioner. The court accepted this explanation and held that the amendment was sought in good faith. (Paras 7-9)

C) Civil Procedure - Amendment of Pleadings - Prejudice - Order VI Rule 17 of Code of Civil Procedure, 1908 - The court considered whether allowing the amendment would cause prejudice to the petitioner. The court noted that the petitioner would have an opportunity to meet the new plea by filing a rejoinder and leading evidence. The court held that any prejudice could be compensated by costs, and therefore, the amendment was allowed. (Paras 8-10)

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Issue of Consideration

Whether the amendment of written statement seeking to introduce a plea of set-off after seven years of filing the written statement should be allowed when the trial has not yet commenced and no prejudice is caused to the plaintiff.

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Final Decision

The High Court dismissed the writ petition and upheld the trial court's order allowing the amendment of the written statement. The court directed the trial court to expedite the suit.

Law Points

  • Amendment of pleadings
  • Set-off
  • Order VI Rule 17 CPC
  • Prejudice
  • Trial commencement
  • Due diligence
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Case Details

2014 LawText (BOM) (04) 172

WRIT PETITION NO. 117 OF 2014

2014-04-09

S. B. SHUKRE, J.

2014:BHC-GOA:969

Mr. Y. V. Nadkarni and Ms. D. Shirgam for the petitioner; Mr. C. A. Coutinho and Mr. S. Redkar for the respondents

M/s. Reliance Enterprises, represented by its Sole Proprietor, Shri Sitaram V. Narvekar

M/s. Wonder World, a registered Partnership Firm, through its Managing Director, Shri H. Umeshchandra Hegde; Smt. Shobha U. Hegde; Ms. Sahana U. Hegde; Ms. Sahitya U. Hegde

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Nature of Litigation

Civil writ petition challenging an order allowing amendment of written statement to include a plea of set-off.

Remedy Sought

Petitioner sought to quash the order dated 30.11.2013 allowing the respondents' amendment application.

Filing Reason

The petitioner contended that the amendment was belated and lacked due diligence, and would cause prejudice.

Previous Decisions

The trial court allowed the amendment application on 30.11.2013.

Issues

Whether the amendment of written statement to introduce a plea of set-off after seven years is permissible under Order VI Rule 17 CPC when trial has not commenced. Whether the respondents exercised due diligence in seeking the amendment. Whether allowing the amendment would cause prejudice to the petitioner.

Submissions/Arguments

Petitioner argued that the amendment was sought after seven years of filing the written statement, without due diligence, and would cause prejudice. Respondents argued that the plea of set-off arose from a subsequent event (filing of a recovery suit by them) and that no prejudice would be caused as the trial had not commenced.

Ratio Decidendi

An amendment to pleadings can be allowed at any stage before the commencement of trial if it is necessary for determining the real controversy and no prejudice is caused that cannot be compensated by costs. The requirement of due diligence under Order VI Rule 17 CPC is satisfied if the party explains the delay, especially when the amendment is based on a subsequent event.

Judgment Excerpts

This petition challenges the order passed on 30.11.2013 in Special Civil Suit No. 137/2006 by Civil Judge, Senior Division, Margao, thereby allowing the application filed by the respondents for amendment of their written statement. The case of the petitioner is that the amendment application filed by the respondents on 19.3.2013 seeking to set up a plea of set-off against the demand of the plaintiff in a suit for recovery of money is belated and lacks due diligence. The trial court has allowed the amendment on the ground that the trial has not yet commenced and no prejudice would be caused to the plaintiff. I find that the trial court has correctly exercised its discretion in allowing the amendment.

Procedural History

The petitioner filed Special Civil Suit No. 137/2006 for recovery of money. The respondents filed their written statement in 2006. On 19.3.2013, the respondents filed an application for amendment of the written statement to include a plea of set-off. The trial court allowed the application on 30.11.2013. The petitioner challenged this order by filing Writ Petition No. 117 of 2014 before the High Court of Bombay at Goa, which was dismissed on 9.4.2014.

Acts & Sections

  • Code of Civil Procedure, 1908: Order VI Rule 17
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