High Court of Karnataka Allows Writ Petition Challenging Rejection of Application to File Additional Written Statement in Commercial Suit — Petitioner Granted Opportunity to File Additional Written Statement on Payment of Costs of Rs. 10,000/-.

High Court: Karnataka High Court Bench: BENGALURU In Favour of Accused
  • 4
Judgement Image
Font size:
Print

Case Note & Summary

The petitioner, M/s. Rhea Healthcare Pvt. Ltd., filed a writ petition under Article 227 of the Constitution of India challenging an order dated 08.04.2022 passed by the LXXXII Additional City Civil and Sessions Judge, Bengaluru, in Commercial O.S. No. 390/2019. The impugned order rejected I.A.No.3 filed by the petitioner (plaintiff in the suit) under Order VIII Rule 9 of the Code of Civil Procedure, 1908 (CPC) seeking permission to file an additional written statement. The petitioner had taken on lease a commercial property from the respondent (defendant) to establish a hospital and allied healthcare services. After taking possession, the petitioner discovered a title dispute regarding the property and that the respondent had not constructed the required building. Consequently, the petitioner filed a suit for specific performance and other reliefs. The defendant filed its written statement, and issues were framed. Subsequently, the petitioner filed I.A.No.3 to file an additional written statement to clarify certain aspects of its case. The trial court rejected the application on the ground that it would cause prejudice to the defendant and that the petitioner had not shown sufficient cause. The High Court, after hearing both sides, observed that the trial court's order was erroneous. The court noted that the additional written statement was necessary to clarify the plaintiff's case and that no prejudice would be caused to the defendant as the trial had not yet commenced. The court held that the trial court had exercised its discretion arbitrarily and that the petitioner should be given an opportunity to file the additional written statement. However, considering the delay, the court imposed costs of Rs. 10,000/- to be paid to the defendant. The writ petition was allowed, the impugned order was quashed, and I.A.No.3 was allowed subject to payment of costs within two weeks.

Headnote

A) Civil Procedure - Additional Written Statement - Order VIII Rule 9 CPC - Commercial Suit - The plaintiff sought to file an additional written statement after the defendant had filed its written statement and issues were framed. The trial court rejected the application on the ground that it would cause prejudice to the defendant and that the plaintiff had not shown sufficient cause. The High Court held that the trial court's order was erroneous as the additional written statement was necessary to clarify the plaintiff's case and no prejudice would be caused to the defendant as the trial had not commenced. The court allowed the petition subject to payment of costs of Rs. 10,000/- to the defendant. (Paras 1-8)

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the trial court was justified in rejecting the plaintiff's application (I.A.No.3) filed under Order VIII Rule 9 of CPC seeking permission to file an additional written statement in a commercial suit, and whether the High Court should interfere under Article 227 of the Constitution.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The writ petition is allowed. The impugned order dated 08.04.2022 passed by the LXXXII Additional City Civil and Sessions Judge, Bengaluru, in Commercial O.S. No. 390/2019 on I.A.No.3 is quashed. I.A.No.3 is allowed subject to payment of costs of Rs. 10,000/- to the respondent/defendant, to be paid within two weeks from the date of receipt of a copy of this order. The trial court is directed to permit the petitioner to file the additional written statement upon payment of costs.

Law Points

  • Order VIII Rule 9 CPC
  • Commercial Courts Act
  • 2015
  • Section 16
  • Additional Written Statement
  • Leave of Court
  • Prejudice to Opposite Party
  • Costs
Subscribe to unlock Law Points Subscribe Now

Case Details

2024 LawText (KAR) (06) 40

WP No. 3939 of 2023 (GM-CPC)

2024-06-26

M.I. Arun

Sri. Subramanya S. Upasana (for petitioner), Sri. R.A. Chandrashekara Reddy for Sri. Dwaraka Nath H.S. (for respondent)

M/s. Rhea Healthcare Pvt. Ltd.

M/s. Raj Alkaa Park

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Writ petition under Article 227 of the Constitution challenging an order rejecting an application to file an additional written statement in a commercial suit.

Remedy Sought

The petitioner sought quashing of the order dated 08.04.2022 rejecting I.A.No.3 and permission to file an additional written statement.

Filing Reason

The petitioner's application to file an additional written statement was rejected by the trial court on the ground that it would cause prejudice to the defendant and that the petitioner had not shown sufficient cause.

Previous Decisions

The trial court rejected I.A.No.3 filed under Order VIII Rule 9 CPC on 08.04.2022.

Issues

Whether the trial court was justified in rejecting the application for additional written statement under Order VIII Rule 9 CPC? Whether the High Court should interfere under Article 227 of the Constitution?

Submissions/Arguments

Petitioner argued that the additional written statement was necessary to clarify its case and that no prejudice would be caused to the defendant as the trial had not commenced. Respondent argued that the application was filed belatedly after issues were framed and that allowing it would cause prejudice.

Ratio Decidendi

The trial court's rejection of an application for additional written statement under Order VIII Rule 9 CPC was erroneous as the additional written statement was necessary to clarify the plaintiff's case and no prejudice would be caused to the defendant since the trial had not commenced. The court should exercise discretion liberally to allow amendments that assist in determining the real controversy, subject to payment of costs.

Judgment Excerpts

Aggrieved by the order passed on I.A.No.3 filed in Commercial O.S.No.390/2019 dated 08.04.2022, by the LXXXII Additional City Civil and Sessions Judge, Bengaluru, the plaintiff therein has preferred this writ petition. The trial court rejected the application on the ground that it would cause prejudice to the defendant and that the plaintiff had not shown sufficient cause. The court held that the trial court's order was erroneous as the additional written statement was necessary to clarify the plaintiff's case and no prejudice would be caused to the defendant as the trial had not commenced.

Procedural History

The petitioner filed a commercial suit (Com. O.S. No. 390/2019) for specific performance and other reliefs. The defendant filed its written statement, and issues were framed. The petitioner then filed I.A.No.3 under Order VIII Rule 9 CPC seeking permission to file an additional written statement. The trial court rejected the application on 08.04.2022. Aggrieved, the petitioner filed the present writ petition under Article 227 of the Constitution.

Acts & Sections

  • Code of Civil Procedure, 1908: Order VIII Rule 9
  • Constitution of India: Article 227
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court High Court of Karnataka Allows Election Petition Challenging Disqualification Under Section 12(h) of Karnataka Gram Swaraj and Panchayat Raj Act, 1993 — Petitioner's Interest in Panchayat Work Not Proved
Related Judgement
High Court High Court of Karnataka Allows Writ Petition Challenging Rejection of Application to File Additional Written Statement in Commercial Suit — Petitioner Granted Opportunity to File Additional Written Statement on Payment of Costs of Rs. 10,000/-.