Bombay High Court Allows Amendment of Plaint in Injunction Suit at Appellate Stage — Sham Transaction Declaration Permitted. The court held that amendment seeking declaration that sale deed was nominal and bogus did not change nature of suit and was necessary for determining real controversy under Order 6 Rule 17 CPC.

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

The petitioners, legal heirs of the original plaintiff, filed a writ petition challenging the rejection of their amendment application by the District Court. The original plaintiff had filed a suit for perpetual injunction claiming ownership of the suit property based on a sale deed dated 14th August 1989, alleging that the defendant was interfering with his possession. The trial court dismissed the suit. During the appeal before the District Court, the plaintiff moved an application under Order 6 Rule 17 of the Code of Civil Procedure, 1908 (CPC) to amend the plaint to seek a declaration that the sale deed was nominal, sham, and bogus, representing a money lending transaction. The District Court rejected the application on two grounds: first, that the issue of the sham nature of the sale was already decided against the plaintiff by the trial court, and second, that the amendment would change the nature of the suit. The High Court, after hearing both sides, held that the amendment was necessary for the proper determination of the real controversy between the parties. The court noted that the plaintiff's case throughout was that the sale deed was nominal, and the amendment merely sought to formalize that claim. The High Court also observed that the trial court's finding on the issue was not final and could be reconsidered in appeal. The court allowed the writ petition, set aside the District Court's order, and permitted the amendment subject to payment of costs of Rs. 5,000 to the respondent.

Headnote

A) Civil Procedure - Amendment of Plaint - Order 6 Rule 17 CPC - Appellate Stage - The plaintiff sought to amend the plaint to add a declaration that the sale deed was nominal, sham, and bogus, representing a money lending transaction. The District Court rejected the application on grounds that the issue was already decided against the plaintiff and that the amendment would change the nature of the suit. The High Court held that the amendment was necessary to determine the real controversy and did not change the nature of the suit, as the plaintiff's case was always that the sale deed was nominal. The court allowed the amendment, setting aside the District Court's order. (Paras 3-6)

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Issue of Consideration

Whether the District Court was justified in rejecting the plaintiff's application for amendment of the plaint at the appellate stage to seek a declaration that the sale deed was sham and bogus.

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Final Decision

The High Court allowed the writ petition, set aside the District Court's order dated 30th August 2016, and allowed the amendment application subject to payment of costs of Rs. 5,000 to the respondent.

Law Points

  • Amendment of plaint at appellate stage
  • Order 6 Rule 17 CPC
  • sham transaction
  • nominal sale deed
  • money lending transaction
  • perpetual injunction
  • declaration of title
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Case Details

2017 LawText (BOM) (09) 159

Writ Petition No.6761/2016

2017-09-13

S.C. Gupte, J.

Shri R.G. Kavimandan for petitioners, Shri Bhushan Mohta for respondent

Rambhau Tryambak Khachane (deceased) through L.Rs.

Nandlal Govardhandas Chandak

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Nature of Litigation

Writ petition challenging rejection of amendment application in a civil suit for perpetual injunction.

Remedy Sought

Petitioners sought to amend the plaint to add a declaration that the sale deed dated 14th August 1989 was nominal, sham, and bogus.

Filing Reason

The District Court rejected the amendment application on grounds that the issue was already decided and the amendment would change the nature of the suit.

Previous Decisions

The trial court dismissed the plaintiff's suit for perpetual injunction. The District Court rejected the amendment application during the appeal.

Issues

Whether the District Court erred in rejecting the amendment application under Order 6 Rule 17 CPC. Whether the proposed amendment would change the nature of the suit.

Submissions/Arguments

Petitioners argued that the amendment was necessary to determine the real controversy and did not change the nature of the suit. Respondent opposed the amendment, contending that the issue was already decided and the amendment would change the nature of the suit.

Ratio Decidendi

An amendment seeking a declaration that a sale deed is sham and bogus does not change the nature of the suit if the plaintiff's case from the beginning was that the deed was nominal. Such amendment is necessary for the proper determination of the real controversy between the parties and should be allowed under Order 6 Rule 17 CPC.

Judgment Excerpts

The amendment is necessary for the purpose of determining the real controversy between the parties. The amendment does not change the nature of the suit.

Procedural History

The original plaintiff filed a suit for perpetual injunction which was dismissed by the trial court. The plaintiff appealed to the District Court. During the appeal, the plaintiff filed an amendment application which was rejected by the District Court. The petitioners then filed the present writ petition.

Acts & Sections

  • Code of Civil Procedure, 1908 (CPC): Order 6 Rule 17
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High Court Bombay High Court Allows Amendment of Plaint in Injunction Suit at Appellate Stage — Sham Transaction Declaration Permitted. The court held that amendment seeking declaration that sale deed was nominal and bogus did not change nature of suit and wa...
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