Supreme Court of India (Division Bench (DB)- Two Judge)

Appeal (Civil), 1323 of 2015, Judgment Date: Jan 30, 2015

                                                              NON-REPORTABLE

                        IN THE SUPREME COURT OF INDIA
                        CIVIL APPELLATE JURISDICTION

                        CIVIL APPEAL NO. 1323 OF 2015
      (Arising out of Special Leave Petition (Civil) No.10161 of 2014)


Mount Mary Enterprises                               .   ... Appellant

                                   Versus

M/s. Jivratna Medi Treat Pvt. Ltd.                      ... Respondent


                               J U D G M E N T

ANIL R. DAVE, J.

            Leave granted.

1.    The appellant, the  original  plaintiff  has  been  aggrieved  by  the
Judgment delivered in Writ Petition No.12099 of 2013 dated 10th March,  2014
by the High Court of Judicature at Bombay.

2.    The facts giving rise to the present litigation in a nutshell  are  as
under:
             The  appellant,  who  has  been  described   as   a   plaintiff
hereinafter, filed a suit against  the  present  respondent,  who  has  been
hereinafter  described  as  a  defendant,  for  specific  performance  of  a
contract in relation to the suit property.  The suit property was  initially
valued at Rs.13,50,000/- (Rupees Thirteen lacs  and  fifty  thousand  only).
The plaintiff, thereafter, realized that market value  of  the  property  in
question was around Rs.1,20,00,000/-  (Rupees  One  Crore  and  Twenty  lacs
only) and therefore, filed an application  for  amending  the  plaint.   The
said  application  for  amendment  was  rejected  by  the  trial  court  and
thereafter, the  aforestated  writ  petition  was  filed  by  the  plaintiff
challenging  the  order  rejecting  the  amendment  application.   The  said
petition  has  also  been  dismissed  and  therefore,  the   plaintiff   has
approached this Court and prayed that the impugned judgment  confirming  the
order rejecting the amendment of the plaint be set aside and  the  plaintiff
be permitted to amend the plaint  so  as  to  state  correct  value  of  the
property in question, which is Rs.1,20,00,000/-.

3.     The  learned  counsel  appearing  for  the  appellant-plaintiff   had
submitted that the amendment application had  been  rejected  by  the  trial
court for the reason that the said amendment was made  at  a  belated  stage
and by virtue of the said amendment, the suit was to be transferred  to  the
High Court on its original side.  It had been  further  submitted  that  the
amendment was made in good faith and by virtue  of  the  said  amendment  no
harm was to be caused to the defendant and the nature of the suit  was  also
not going to be changed.  It had been further submitted that  the  appellant
was also prepared to affix additional court fee stamp as valuation  of  suit
was increased to Rs.1,20,00,000/-.

4.    It had been also submitted by  the  learned  counsel  that  in  normal
circumstances an amendment application is always granted  unless  by  virtue
of the amendment, nature of the suit is changed or some irreparable harm  is
caused to the defendant.  According to him,  in  the  instant  case  neither
nature of the suit was changed nor  was  the  defendant  being  put  to  any
hardship. The amendment was also not likely to cause any  prejudice  to  the
defendant.  The amendment which was sought to be made was  just  and  proper
because actual market value of the said property was Rs.1,20,00,000/-.   For
the aforesaid reasons, it had  been  submitted  by  him  that  the  impugned
judgment confirming the order rejecting the amendment application should  be
set aside and the appellant should be permitted to amend the plaint.

5.    On the other hand, the learned counsel appearing for  the  respondent-
defendant had submitted that  the  amendment  application  was  filed  at  a
belated stage with an oblique motive.  According to  him,  in  pursuance  of
the said amendment, the suit was to be transferred to  the  High  Court  and
only with an intention to see that the  suit  is  transferred  to  the  High
Court on its original side, the plaintiff wanted to amend  the  plaint.   It
had, therefore, been submitted by him that  the  amendment  application  was
rightly rejected  by  the  trial  court  and  the  High  Court  had  rightly
confirmed the said order.

6.    We have heard the learned counsel and have also considered  the  facts
of the case.

7.    In our opinion, as per the provisions of Order 6 Rule 17 of the  Civil
Procedure Code, the amendment application should be normally granted  unless
by virtue of the amendment nature of the suit is changed or  some  prejudice
is caused to the defendant.  In the instant case, the  nature  of  the  suit
was not to be changed  by  virtue  of  granting  the  amendment  application
because the suit was for specific performance  and  initially  the  property
had been valued at Rs.13,50,000/- but as the market value  of  the  property
was actually Rs.1,20,00,000/-,  the  appellant-plaintiff  had  submitted  an
application for amendment so as to  give  the  correct  value  of  the  suit
property in the plaint.

8.    It is also pertinent to note that the defendant had made  an  averment
in para 30 of the written statement filed in Suit No.1955 of 2010  that  the
plaintiff had undervalued the subject matter  of  the  suit.   It  had  been
further submitted in the written statement that  the  market  value  of  the
suit property was much higher than Rs. 14  lacs.   The  defendant  had  paid
Rs.13.5 lacs for the said premises in the year 2002 when the  said  premises
had been occupied by a tenant bank.  Even according to the  defendant  value
of the suit property had been undervalued by the plaintiff  in  the  plaint.
If in pursuance of the averment made in the written statement the  plaintiff
wanted to amend the plaint so as to incorporate correct market value of  the
suit property, the defendant  could  not  have  objected  to  the  amendment
application whereby the plaintiff wanted to  incorporate  correct  value  of
the suit property in  the  plaint  by  way  of  an  amendment.    The  other
contention that the valuation  had  already  been  settled  cannot  also  be
appreciated since the High Court has held that the said issue was yet to  be
decided by the trial Court.

9.    The main reason assigned by the  trial  court  for  rejection  of  the
amendment application was that upon enhancement  of  the  valuation  of  the
suit property, the suit was to be transferred  to  the  High  Court  on  its
original side.  In our view, that is not a reason for  which  the  amendment
application should have been rejected.  With regard to amendment of  plaint,
the following observation has been made by this Court in the case  of  North
Eastern Railway Administration, Gorakhpur v. Bhagwan Das (D) by LRs.  (2008)
8 SCC 511 :
"16.  Insofar as the principles which govern the  question  of  granting  or
disallowing amendments under Order 6 Rule 17 C.P.C.  (as  it  stood  at  the
relevant time) are concerned, these are also well settled.  Order 6 Rule  17
C.P.C. postulates amendment of pleadings at any stage  of  the  proceedings.
In Pirgonda Hongonda Patil v. Kalgonda Shidgonda Patil and others  (1957)  1
SCR 595 which still holds the filed, it was held that all  amendments  ought
to be  allowed  which  satisfy  the  two  conditions:  (a)  of  not  working
injustice to the other side, and (b) of being necessary for the  purpose  of
determining  the  real  questions  in  controversy  between   the   parties.
Amendments should be refused only where the other party cannot be placed  in
the same position as if the pleading had been originally  correct,  but  the
amendment would cause him an  injury  which  could  not  be  compensated  in
costs."

10.   In our opinion, on the basis of the aforestated  legal  position,  the
amendment application made  by  the  plaintiff  should  have  been  granted,
especially in view of the fact that it was admitted by  the  plaintiff  that
the suit property was initially undervalued in the plaint and by  virtue  of
the amendment application, the plaintiff wanted to  correct  the  error  and
wanted to place correct market value of the suit property in the plaint.

11.   For the aforestated reasons, we are of the  view  that  the  amendment
application should not have been rejected by the trial court  and  the  High
Court should not have confirmed the order of rejection.  We, therefore,  set
aside the impugned judgment delivered by the High Court and the order  dated
22nd November, 2013 of the trial court, whereby  the  amendment  application
had been rejected.

12    We allow  the  appeal  and  direct  the  trial  court  to  permit  the
appellant-plaintiff to amend the plaint  as  prayed  for  in  the  amendment
application so as to change valuation of the  suit  property.  There  is  no
order as to costs.


                                       ..............................J
                                                  (ANIL R. DAVE)


                                       ..............................J
                                                  (KURIAN JOSEPH)
NEW DELHI;
JANUARY 30, 2015

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