Case Note & Summary
The present interim application was filed by defendant no.7, Ganesh Lakhaji Chudasama, seeking amendment of his written statement in a commercial suit pending before the Bombay High Court. The plaintiff, Geekay Enterprises, a registered partnership firm, had filed Commercial Suit No. 117 of 2021 against multiple defendants including Ganesh Builders and its partners. The suit pertained to certain commercial transactions. Defendant no.7 sought to amend his written statement to incorporate additional facts regarding the execution of an agreement and payment of consideration, which he claimed were inadvertently omitted. The plaintiff opposed the amendment on the ground that it would introduce a new cause of action and cause prejudice. The court, after hearing both sides, noted that the trial had not yet commenced and that the amendment sought was in the nature of additional defence. The court held that no prejudice would be caused to the plaintiff as the amendment did not change the nature of the suit and the plaintiff would have an opportunity to respond. The court allowed the amendment subject to payment of costs of Rs. 10,000 to the plaintiff. The court also directed that the amended written statement be filed within two weeks.
Headnote
A) Civil Procedure - Amendment of Pleadings - Order VI Rule 17 CPC - Prejudice - The court considered whether amendment of written statement should be allowed when trial has not commenced and no prejudice is caused to the plaintiff. Held that amendment can be allowed at any stage before trial to determine real questions in controversy, provided no prejudice is caused to the other side (Paras 10-15). B) Commercial Law - Amendment of Written Statement - Section 16 of Commercial Courts Act, 2015 - The court examined the interplay between Order VI Rule 17 CPC and Section 16 of the Commercial Courts Act, which restricts amendments after commencement of trial. Since trial had not commenced, the restriction did not apply (Paras 12-14). C) Civil Procedure - Amendment of Pleadings - New Cause of Action - The court held that amendment introducing new facts does not necessarily introduce a new cause of action if it is in the nature of additional defence. The test is whether the amendment changes the nature of the suit or causes prejudice (Paras 16-18).
Issue of Consideration
Whether the applicant/defendant no.7 should be permitted to amend his written statement to incorporate additional facts and grounds of defence, and whether such amendment would cause prejudice to the plaintiff or introduce a new cause of action.
Final Decision
The court allowed the interim application and permitted defendant no.7 to amend his written statement subject to payment of costs of Rs. 10,000 to the plaintiff. The amended written statement to be filed within two weeks.
Law Points
- Amendment of pleadings
- Order VI Rule 17 CPC
- Commercial Courts Act 2015 Section 16
- Prejudice to opposite party
- Cause of action
- Limitation
