Bombay High Court Dismisses Petition Challenging Amendment of Plaint in Unfair Trade Practice Suit — Amendment Allowed to Bring Subsequent Resolution on Record Under Order 6 Rule 17 CPC.

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

The petitioner, City and Industrial Development Corporation Ltd. (CIDCO), filed a writ petition under Article 227 of the Constitution of India challenging an order dated 4th April 2016 passed by the 4th Civil Judge, Senior Division, Thane, which allowed the respondent-plaintiff's application under Order 6 Rule 17 of the Code of Civil Procedure, 1908 (CPC) for amendment of the plaint. The original suit was filed on 13th March 2002 by the respondent (M/s Preet Sonal Investments & Finance Co. Pvt. Ltd. and its director) against CIDCO seeking a declaration of unfair trade practice under Section 36A of the Monopolies and Restrictive Trade Practices Act, 1969, along with damages and other reliefs. During the pendency of the suit, CIDCO passed a resolution in 2009 concerning the plot that was the subject matter of the suit. The resolution allegedly contained a condition that the plaintiff must withdraw the suit unconditionally. Based on this resolution, the plaintiff filed an application under Order 12 Rule 6 CPC for a decree on admission. CIDCO opposed that application, arguing that there was no pleading in the original plaint regarding the resolution. Consequently, the plaintiff filed the amendment application under Order 6 Rule 17 CPC to incorporate the resolution and consequential reliefs. The trial court allowed the amendment, holding that it was necessary for the just and effective adjudication of the case and that no prejudice would be caused to CIDCO since the resolution was passed by CIDCO itself. Aggrieved, CIDCO filed the present writ petition. The High Court, after hearing both sides, dismissed the petition, upholding the trial court's order. The court noted that the amendment was based on a subsequent event (the resolution) and was relevant for the plaintiff's claim for a decree on admission. The court also observed that the amendment did not change the nature of the suit and that CIDCO would have an opportunity to contest the amended plaint. The petition was dismissed with no order as to costs.

Headnote

A) Civil Procedure - Amendment of Pleadings - Order 6 Rule 17 CPC - Subsequent Events - The plaintiff sought amendment to bring on record a resolution passed by the defendant during pendency of suit, which allegedly contained admissions regarding re-allotment of plot and withdrawal of suit - The trial court allowed the amendment - Held that amendment was necessary for effective adjudication and did not cause prejudice to defendant as it was based on defendant's own resolution (Paras 1-8).

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Issue of Consideration

Whether the trial court erred in allowing amendment of the plaint under Order 6 Rule 17 CPC to incorporate a subsequent resolution passed by the defendant, which was relevant for the plaintiff's claim for decree on admission under Order 12 Rule 6 CPC.

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Final Decision

The High Court dismissed the writ petition, upholding the trial court's order allowing amendment of the plaint. No order as to costs.

Law Points

  • Amendment of pleadings
  • Order 6 Rule 17 CPC
  • subsequent events
  • admission under Order 12 Rule 6 CPC
  • unfair trade practice
  • Monopolies and Restrictive Trade Practices Act
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Case Details

2018 LawText (BOM) (10) 47

Writ Petition No. 4379 of 2016

2018-10-16

R.D. Dhanuka, J.

Mr. R.S. Apte, Senior Advocate i/b Mr. Ashutosh M. Kulkarni for Petitioner; Mr. Akhilesh Dubey a/w Mr. Nishant Tripathi, Mr. Vaibhav Bandgor, Mr. Somnath Iyer i/b M. Tripathi & Co. for Respondents

City and Industrial Development Corporation Ltd.

M/s Preet Sonal Investments & Finance Co. Pvt. Ltd. & Anr.

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Nature of Litigation

Civil writ petition under Article 227 of the Constitution of India challenging an order allowing amendment of plaint under Order 6 Rule 17 CPC.

Remedy Sought

Petitioner (original defendant) sought to quash the trial court's order allowing amendment of plaint.

Filing Reason

The trial court allowed the plaintiff's application to amend the plaint to incorporate a resolution passed by the defendant during pendency of suit, which the defendant opposed.

Previous Decisions

The trial court (4th Civil Judge, Senior Division, Thane) allowed the amendment application (Ex.40) on 4th April 2016.

Issues

Whether the trial court erred in allowing amendment of plaint under Order 6 Rule 17 CPC to incorporate a subsequent resolution passed by the defendant. Whether the amendment was necessary for effective adjudication and did not cause prejudice to the defendant.

Submissions/Arguments

Petitioner argued that the amendment was not necessary and would change the nature of the suit. Respondent argued that the amendment was based on a subsequent event (resolution) and was necessary for seeking decree on admission under Order 12 Rule 6 CPC.

Ratio Decidendi

Amendment of pleadings under Order 6 Rule 17 CPC can be allowed to bring on record subsequent events that are relevant for effective adjudication, especially when the amendment is based on the opposing party's own resolution and does not cause prejudice.

Judgment Excerpts

By this petition filed under Article 227 of the Constitution of India, the petitioner (original defendant) has impugned the order dated 4th April, 2016 passed by the 4th Civil Judge, Senior Division, Thane allowing the application (Ex.40) filed under Order 6 Rule 17 of the Code of Civil Procedure, 1908 thereby allowing the amendment of the plaint filed by the respondent (original plaintiff).

Procedural History

Suit filed on 13th March 2002. During pendency, defendant passed a resolution in 2009. Plaintiff filed application under Order 12 Rule 6 CPC for decree on admission. Defendant opposed citing lack of pleading. Plaintiff then filed amendment application under Order 6 Rule 17 CPC, which was allowed by trial court on 4th April 2016. Defendant filed writ petition under Article 227 challenging that order. High Court dismissed petition on 16th October 2018.

Acts & Sections

  • Code of Civil Procedure, 1908: Order 6 Rule 17, Order 12 Rule 6
  • Monopolies and Restrictive Trade Practices Act, 1969: Section 36A
  • Constitution of India: Article 227
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High Court Bombay High Court Dismisses Petition Challenging Amendment of Plaint in Unfair Trade Practice Suit — Amendment Allowed to Bring Subsequent Resolution on Record Under Order 6 Rule 17 CPC.
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