# A. K. GUPTA AND SONS v. DAMODAR VALLEY CORPORATION

- **Citation:** [1966] 1 S.C.R. 796
- **Court:** Supreme Court of India
- **Decided:** 1965-09-10
- **Bench:** A. K. Sarkar, RAGllUBAR DAYAL, V. Ramaswami
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/a-k-gupta-and-sons-v-damodar-valley-corporation-3625
- **Pages:** 21

## Headnote

Code of Civil Procedure (Act V of 1908), s. 153 0. 2 r. 2 and O. 6,
r. 17-Amendment of plaint-When may be allowed.
The appellant filed a suit against the respondent claiming a declaration
that, on a proper interpretation of one of the clauses of the contract '
between them, the appellant was enti!led to an enhancement
of
20%
over the tendered raies.
'!be plain! stated, that work had
been
dono
o_nder the contract and that the value of the suit for purposes of jurisdiction was Rs. 65,000, but as it was a suit for a decJara1ion only, coun
fees on that basis had been paid.
The appellant also reserved the right
to sue later for the amount
found
due.
The
re9pondent
contested
the suit on the ground 1hat the suit was no: maintainahl·~ in the form
in which it was framed, and disputing the correctness of the interpretation
of the clause suggested by the appellant stated that it was ever
ready and willing and was still willing to pay the legitimate dues of the
appellant. The issue regarding maintainabili.ty of lhe suit was not pressed by
the respondent at the hearing;
and the other issue regardin~ the interpretation of the clause of 1he contract having been decided by the trial
court in favour of the appellant, the suit was decreed and leave
waa
gran:ed undc' 0. 2. r. 2, Civil Proc-,dure Code, 1908, to me later for
the amount due.
On appeal the issue as to rnain1ainability was rcsu~
cita!ed and 1he High <:ourr decided it in the respondent's favour because
of the proviso to s. 42 of the Specific Relief Act, 1877, and also held
that the trial court was not righ: in granting l·>avc under 0. 2, r. 2.
The
High Court rejected
a
petition
for amending
1he
pl:iint
hy
including a prayer for a decree for Rs. 65.000 or such other amount as
may he found due on proper accounl being taken then
made
by
the
appellant on the ground rhat the claim for money was time-barred long
before the petition for amendment 1,1,·as made and because 1here w..!re no
special circums1ancc.s justifying the graat of the am~11dment.
HfLD: (Per Sarkar and Ramaswami. JJ.) (i) If there wa.
any
case \vhcre lhe respondenl was not entitled to the hcncfit of the law
of limitation, the instant case was that one.
It was a case in which
the claim for money was in substance in the plain! from the beginning
though it had not formally b·,en made and so the respondent could not
legitimately claim that the amendment
would
prejudicially
affect
his
right under the law of limitation, for really he had no such right.
(801
A-CJ
A party is not allowed to set up a new case or a new causr. of action
by amendment. but it is well recognised that 1,1,·here the amendment doea
not constitute the addition of a new cause of action or r;iise a new caSC",
but amounts to no more than a different or additional approach to the
facts alrcadv on the record, the amendment will be allowed even after the
Mpiry of 1he statutory period of limitation.
The expression "ne;y cause
of actio11." in this context means, a new claim made on a new basis eooatituted bv new facts, and "new case" means a new set of iCc:ts. 1799 F-H;
800 B-DJ
The amendment was necessary for a decision of the real dispute between the partie~ which wa~ : what were their rights und~r the contrD.ct;
and that dispute was clearly involved in the plaint as originally framed.
A
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B
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H
A
B
c
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D
E
F
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A. K. GUPTA V. D. V. C.
797
It was the contract which formed the cause of action on which
the
1uit was based and the amendment sought to introduce a claim based
on the same cause of action, that is, the same contract and introduced
no new case or facts. Indeed, the facts on which the money claim sought
to be added was based, were not in dispute, and the absence of details
of work was not a legitimate ground for refusing the amendment.
The
respondent had notice of the amount of claim, was fuJly aware that the
ultimato object of the appellant in filing the suit was to obtain payment
of that amount, and had specifically expressed in the written st

## Text

_Characters 0–39,865 of 53,812. This is a partial read: ask again with offset=39865 for what follows._

A. K. GUPTA AND SONS
v.
DAMODAR VALLEY CORPORATION
September 10, 1965
(A. K. SARKAR, RAGllUBAR DAYAL AND V. RAMASWAMI, JJ.)
Code of Civil Procedure (Act V of 1908), s. 153 0. 2 r. 2 and O. 6,
r. 17-Amendment of plaint-When may be allowed.
The appellant filed a suit against the respondent claiming a declaration
that, on a proper interpretation of one of the clauses of the contract '
between them, the appellant was enti!led to an enhancement
of
20%
over the tendered raies.
'!be plain! stated, that work had
been
dono
o_nder the contract and that the value of the suit for purposes of jurisdiction was Rs. 65,000, but as it was a suit for a decJara1ion only, coun
fees on that basis had been paid.
The appellant also reserved the right
to sue later for the amount
found
due.
The
re9pondent
contested
the suit on the ground 1hat the suit was no: maintainahl·~ in the form
in which it was framed, and disputing the correctness of the interpretation
of the clause suggested by the appellant stated that it was ever
ready and willing and was still willing to pay the legitimate dues of the
appellant. The issue regarding maintainabili.ty of lhe suit was not pressed by
the respondent at the hearing;
and the other issue regardin~ the interpretation of the clause of 1he contract having been decided by the trial
court in favour of the appellant, the suit was decreed and leave
waa
gran:ed undc' 0. 2. r. 2, Civil Proc-,dure Code, 1908, to me later for
the amount due.
On appeal the issue as to rnain1ainability was rcsu~
cita!ed and 1he High <:ourr decided it in the respondent's favour because
of the proviso to s. 42 of the Specific Relief Act, 1877, and also held
that the trial court was not righ: in granting l·>avc under 0. 2, r. 2.
The
High Court rejected
a
petition
for amending
1he
pl:iint
hy
including a prayer for a decree for Rs. 65.000 or such other amount as
may he found due on proper accounl being taken then
made
by
the
appellant on the ground rhat the claim for money was time-barred long
before the petition for amendment 1,1,·as made and because 1here w..!re no
special circums1ancc.s justifying the graat of the am~11dment.
HfLD: (Per Sarkar and Ramaswami. JJ.) (i) If there wa.
any
case \vhcre lhe respondenl was not entitled to the hcncfit of the law
of limitation, the instant case was that one.
It was a case in which
the claim for money was in substance in the plain! from the beginning
though it had not formally b·,en made and so the respondent could not
legitimately claim that the amendment
would
prejudicially
affect
his
right under the law of limitation, for really he had no such right.
(801
A-CJ
A party is not allowed to set up a new case or a new causr. of action
by amendment. but it is well recognised that 1,1,·here the amendment doea
not constitute the addition of a new cause of action or r;iise a new caSC",
but amounts to no more than a different or additional approach to the
facts alrcadv on the record, the amendment will be allowed even after the
Mpiry of 1he statutory period of limitation.
The expression "ne;y cause
of actio11." in this context means, a new claim made on a new basis eooatituted bv new facts, and "new case" means a new set of iCc:ts. 1799 F-H;
800 B-DJ
The amendment was necessary for a decision of the real dispute between the partie~ which wa~ : what were their rights und~r the contrD.ct;
and that dispute was clearly involved in the plaint as originally framed.
A
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H
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B
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D
E
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A. K. GUPTA V. D. V. C.
797
It was the contract which formed the cause of action on which
the
1uit was based and the amendment sought to introduce a claim based
on the same cause of action, that is, the same contract and introduced
no new case or facts. Indeed, the facts on which the money claim sought
to be added was based, were not in dispute, and the absence of details
of work was not a legitimate ground for refusing the amendment.
The
respondent had notice of the amount of claim, was fuJly aware that the
ultimato object of the appellant in filing the suit was to obtain payment
of that amount, and had specifically expressed in the written statement,
its willingness to pay the appellant's legitimate dues.
[800 F-H; 802 C,
D-EJ
]. T. Leash & Co. v. Jardine Skinner & Co. [1957] S.C.R. 438; Pirgortda
Hongonda Patil v. Ka/gonda Shidgonda Patil, [1957] S.C.R. 595.
Charan Das v. Amin Khan, L.R. 47 I.A. 255, applied.
Per Raghubar Dayal, J. (Dissenting) : An amondment which would
enable a plaintiff to make a claim which has become time barred is as
a rule to be refused and the Court would exercise its special power to
allow such amendment only when there are special circumstances in the
case.
Such special circumstances can be said to exist only when
the
amended claim was at least intended to be made by the plaimi!I who had
given in the plaint all the necessary facts to establish the claim but had,
due to clumsy drafting, not been able to express himself clearly in the
plaint and to couch his relief in the proper legal form.
Such circumstances justify an amendment not really as a judicial concession to the
plaintiff to save him from any possible loss but on the ground that the
original claim in the plaint, though defe.ctively stated, really amounted
to the claim sought to be made by the amendmerrt, so that, it does not
in reality offend against the law of limitation but serves the interests of
justice. [813 H; 814 A-CJ
The plaint gave none of the facts which were necessary for getting
a decree for Rs. 65,000 or which might justify a decree for accounting.
To allow the amendment of the plaint would necessarily lead tu a further
request for
furnishing details about the work <lone and the defendant
being afforded an opportunity to put in a further written statemcnL.
In
fact, it would nece9Sitate a de novo trial on the auestion as to the amount
due t<> the plaintiff. When the plaintiff could -not get the relief of the
amended claim on the facts mentioned in the plaint as originally filed,
the cause of action
for a
decree
for
Rs.
65,000
was
different
from the cause of action on which the suit for declaration was founded.
It could not be said that the plaintiff intended to sue the defendant for
the recovery of Rs. 65,000 but failed to express himself clearly in the
plaint and that therefore he should be allowed to make the plaint precise
and clear in that regard. The fact that he re,erved his right to sue for
the amount indicates that he did not intend to sue for the amount; and
the fact that the trial court gave him laive to sue later does not justify
the amendment, because, leave can be given by the court under 0. 2, r. 2
only when the plaintiff omitted to sue for a certain relief arising out of
the same cause of action. [814 G; 815 B-D, F, G-H; 816 A-BJ
(ii) Per Raghubar Dayal, J : The High Court was not in error in
allowing the respondent to raise the objection as to the maintainability of
the suit on account of the appellant not asking for further relief.
[806
CJ
It was incumbent on the trial court not to make a declaration unless
further relief had been prayed for even if the objection was not raised
by the party. Further, it could not be said that the objection was not
raised by the respondent in the trial court merely becauser it did not press
the contention.
[805 H; 806 A-Bl
7118
SUPREME COURT REPORTS
(1966] l S.C.R.
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 18 of A
1963.
Appeal from the judgment and decree, dated January 19,
1961 of the Patna High Court in Appeal from Original Decree
No. 253 of 1955.
Niren De, Additional Solicitor-General and D. N. Mukherjee
B
for the appellants.
Kanhaiyaji and S. P. Varma, for the respondent.
The Judgment of SARKAR and RAMASWAMI JJ. was delivered
by SARKAR J. RAGHUBAR DAYAL,
J.
delivered
a
dissenting c
Opinion.
Sarkar, J.
The question raised in this appeal is whether the
High Court was in error in refusing permission to the appellant
to amend its plaint.
We think it was.
The appellant had done work for the respondent under a
D
contract which only specified the rates for different categories of
work.
The contract contained
the
following
clause :
"This
quotation is based on prevailing labour rate of Rs.
1-4-0 per
cooly but if there is increase of labour rate of more than 10%
in any particular month, the proportionate increase in rate will
be charged".
Subsequent to the making of the contract there
E
was an increase in the labour rate per cooly by 20%.
The
appellant claimed that under the clause it was entitled to the
whole amount of the increase while the respondent coniended that
it was entitled to a part of it only.
This was the only dispute
between the parties in respect of the contract.
There
was no
F
other dispute either concerning the quantity or quality of the work
done or otherwise howsoever.
The appellant filed a suit against the respondent only claiming a declaration that on a proper interpretation of the clause it
was entitled to an enhancement of 20% over the tendered rates
as the sole difference between the parties was about the interG
pretation.
The plaint stated that work had been done under
the contract and that the value of the suit for purposes of jurisdiction was Rs. 65,000, but as it was a suit for a declaration only
court fees on that basis had been paid.
The respondent in its
written statement challenged the appellant's interpretation of the
clause but did not dispute any material fact or that the only dis11
putc was about the interpretation.
The written statement concluded by saying that the respondent "was ever ready and wilting
'
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A. K. GUPTA v. D. v. c. (Sarkar, J.)
799
A and is still ready and willing to pay the legitimate dues to the
plaintiff."
c
D
Before the learned trial Judge several issues were raised but
it is necessary to mention only two.
One issue was as to the
maintainability of the suit in the form in which it had been framed
and the other issue was as to the proper interpretation of the
clause.
The first of these issues was not pressed at the hearing.
The other issue having been decided by the trial Court in favour
of the appellant, the suit was decreed.
The other issues which
had been raised, had also not been pressed.
The Court had
further given the appellant leave under 0. 2 r. 2 of the Code of
Civil Procedure to sue later for the amount due under the contract.
The respondent then went up in appeal to the High Court at
Patna.
There the issue as to the maintainability of the suit was
resuscitated and pressed and it was decided in the respondent's
favour because of the terms of the proviso to s. 42 of the Specific
Relief Act, 1877.
The correctness of this view is not challenged
in this Court.
In the result the High Court dismissed the suit.
' Now, the appellant had in view of the High Court's decision
as to the maintainability of the suit, sought its leave to amend
the plaint by adding an extra relief in the following words : "That
E a decree for Rs. 65,000 or such
oth.~r amount which may be
found due on proper account being taken may be passed in
favour of the plaintiff against the defendant". The amendment
having been refused the present appeal has been preferred.
F
G
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It is not in dispute that at the date of the application for
amendment, a suit for a money claim under the contract was
barred.
The general rule, no doubt, is that a party is not allowed
by amendment to set up a new case or a new cause of action
particularly when a suit on the new case or cause of action is
barred: Weldon v. Neale.(')
But it is also well recognised that
where the amendment does not constitute the addition of a new
cause of action or raise a different case, but amounts to no more
than a different or additional approach to the same facts, the
amendment will be allowed even after the expiry of the statutorv
period of limitation : see Charan Das v. Amir Khan(' I and L. J.
Leach & Company Ltd. v. Jardine Skinner and Co.(8 )
The principal reasons that have led to the rule last mentioned
are, first, that the object of Courts and rules of procedure is to
{I) 19 Q.B.D. 394.
(l) L.R. 47 I.A. 255.
(3) [1957] S.C.R. 438.
800
SUPREME
COURT
REPORTS
[1966] I S.C.R.
decide the rights of the parties and not to punish them for their
A
mistakes (Cropper v. Smith)(') and secondly, that a party is
strictly not entitled to rely on the statute of limitation when what
is sought to be brought in by the amendment can be said in
substance to be already in the pleading sought to be amended
Kisandas Rupchand v. Rachappa Vithoba(') approved in Pirgonda Hongonda Patil v. Kalgonda Shidgonda Patil(').
The expression "cause of action" in the present context does
not mean "every fact which it is material to be proved to entitle
B
the plaintiff to succeed" as was said in Cooke v. Gill(') in a
different context, for if it were so, no material fact could ever be
amended or added and, of course, no one would want to change C
or add an immaterial allegation by amendment.
That expression
for the present purpose only means, a new claim made on a new
basis constituted by new facts.
Such a view was taken in Robinson v. Unicos Property Corporation Ltd.(') and
it seems to
us to be the only possible view to take.
Any other view would
make the rule futile.
The words "new case" have been underD
stood to mean "new set of ideas" : Doman v. J. W. Ellis & Co.
Ltd.('). This also seems to us to be a reasonab:e view to take.
No amendment will be allowed to introduce a new set of ideas
to the prejudice of any right acquired hy any party by lapse of
time.
Now, how does the present case stand on these principles 1 Does
the amendment introduce a new cause of action or a new case 1
We do not think it does.
The suit was on the contract. It sought
the interpretation of a clause in the contract only for a decision
of the rights of the parties under it and for no other purpose.
It
was the contract which formed the cause of action on which the F
suit wa~ based.
The amendment seeks to introduce
a
claim
based on the same cause of action, that is, the same contract.
It
introduces no new case or facts.
Indeed the facts on which the
money claim sought to be added is based are not in dispute.
Even
the amount of the claim now sought to be made by amendment, was
mentioned in the plaint in stating the valuation of the suit for the G
purpose of jurisdiction.
The respondent had notice of it.
It is
quite clear that the interpretation of the clause was sought only for
quantifyin~ the money claim.
In the written statement the respondent specifically expressed its willingness to pay the appellant's
legitimate dues which could only mean such amount as might be
H
(I} (t 884) 26 Ch. D. 700,710-t
(3) (1957] S.C.R. 595, 603
(5) (1962] 2 All E.R. 24.
(2) (t909) I.L.R. 33 Born. 644, 651.
(4) (!873) L.R. 8 C. P. !07, 1!6
(6) (19621 f Alf E.R. 303.
•
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A. K. GUPTA v. D. v. c. (Sarkar, I.)
801
due according to the rates applicable on a proper interpretation
of the clause.
The respondent was fully aware that the ultimate
object of the appellant in filing the suit was to obtain the payment
of that amount.
It was equally aware that the amount had not
been specifically claimed in the suit because the respondent had
Jed the appellant to believe that it :would pa~ what~ver the c.ourt
legitimately found to be due.
It m fact said so m the wntten
statement. If there was any case where the respondent was not
entitled to the benefit of the law of limitation, the yresent is that
one.
The respondent cannot legitimately claim that the amendment will prejudicially effect his right under that law for really
he had no such right.
It is a case in which the claim for money
was in substance in the plaint from the beginning though it had
not formally been made.
This, therefore, seems to us to be pre-eminently a case for
allowing the amendment.
The authorities also lead us to the same
view.
In L. J. Leach & Co.'s case(') a suit for damages for
conversion was by amendment allowed to be converted into a suit
for damages for breach of contract after that claim had become
barred, the necessary facts, as in the case in hand, being already
in the plaint.
In Charan Das's case(') an amendment adding a
claim for possession after a suit for such claim had become barred
was allowed in a suit which originally had only claimed a declaraE
tion of a right to pre-empt. In the last mentioned case, the plaintiff had in spite of warning at the earliest stage refused to make
the amendment which he later sought and got.
It was, therefore,
a case where the plaintiff had initially deliberately refused to make
a claim and an amendment being allowed later permitting that
drum to be raised after it had become barred.
It was in a sense
a stronger case than the present one where the plaintiff had omitted
F
G
H
to make the claim initially on a wrong notion and a wrong le<>al
advice.
Punishing of mistakes is, of course, not administrati~ri
of justice.
It is true that the plaint does not set out the detruls of the
work done.
But there never was any dispute about them. Indeed
the respondent had prepared a final bill of the appellant's dues
for the work done under the contract and the appellant had
accepted that bill as correct except on the question as to the proper
rate chargeable under the clause.
Strictly the details of the work
done were not necessary in the plaint for it would be a waste of
time of a court to go into them, it not being unusual to direct an
enquiry by a Commissioner or a subordinate officer about such
(1) [1957] S.C.R. 438
(2) L.R. 47. LA. 2.55.
L8Sup.C.I./65-8
802
SUPREME COURT
REPORTS
(1966] l S.C.R.
-Oetails when, as in the present case, the items of work done are
A
innumerable.
It would be enough in such cases to file the details
before the authority making the enquiry.
Besides, in Pirgonda
Hongonda Patil's case('), in a suit for a declaration of title, this
Court permitted an amendment setting out the detailed facts on
which the title was claimed after the suit had become time barred.
The absence of the details of the work does not furnish a legitimate
B
ground for refusing the amendment.
It may be that as a result of the amendment, if the respondent
chooses to raise a controversy about the work done, that is, about
the quantity, quality and other things concerning it, which it had
never raised so long, the matter will have to be gone into.
That c
again would not justify a refusal of leave to amend.
It would not
mean any waste of time or money or any duplication of work.
That investigation would now be made for the first
time and
nothing done so far would become futile.
Such an enquiry was
indeed directed in L. J. Leach & Co.'s case(').
The amendment sought is necessary for a decision of the real
D
dispute between the parties which is, what are their rights under
the contract? That dispute was clearly involved in the plaint as
originally framed.
All the necessary basic facts had been stated.
Only through a misconception a relief which could be asked on
those facts had not been asked.
It would not have been necessary
E
to ask for it unless the respondent had at a late stage taken the
point that the suit should fail without more in the absence of
that relief.
We find the present ca~e indistinguishable from Chara11
Das's case{1).
We would for these reasons allow the appeal.
The case would
go back to the High Court with a direction to it to allow the
F
amendment sought and then to decide the correct interpretation of
the disputed clause and thereafter, if the occasion arose, to ascertain the amount due by a proper enquiry to be made either by the
High Court or by the trial Court as the High Court may think fit.
The High Court may, if the appellant asks for it, also allow an
(j
amendment setting out the particulars making up the claim of
Rs. 65,000 introduced by the amendment, that is, quantity, rate
etc. of the work done.
The appellant will get the costs in thi~
Court.
The question of subsequent costs will be decided by the
High Court.
The judgment of the High Court in so far a~ it
refused the amendment is set aside but the rest of that judgment
8
will stand.
(t) 11957] S.C.R. 595.
(2) [1957] S.C.R. 438.
(3) L.R. 47 I.A. 255.
I
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B
c
D
A. K. GUPTA V. D. V. C. (Daya/, J.)
803
Raghubar Dayal, J. This appeal, on certificate granted by the
High Court of Patna, is against the judgment and decree dismissing the appellant's suit for a declaration on the ground that the
plaintiff had not asked for consequential relief.
The High Court
rejected the application presented to it for amendment of the plaint.
The question for determination is whether the High Court was
right in rejecting the application for amendment.
The plaintiff sued for a declaration that it was entitled to
enhancement of 20 % over the tender rates for the different categories of excavation work as detailed in para 13 of the plaint in
connection with the work of excavation in foundation of the Tilaiya
Dam at Katni, P. S. Koderma, in the district of Hazaribagh.
Paragraphs 1 and 2 of the plaint read :
"1. That the plaintiff did excavation on work of
different categories as contractor in connection with the
excavation in foundation of the Tilaiya Dam at Katni in
the district of Hazaribagh, P. S. Koderma.
The contractor's letter of 24th September 1949 (Annexure A)
eventually became the tender for such work.
2. Paragraph of the contractor's letter stated :
'This quotation is based on prevailing labour rate of
Rs. 1-4-0 per cooly but if there is increase of labour
E
rate of more than 10% in any particular month, the proportionate increase in rate will be charged'."
Paragraphs 3 to 11 state facts which indicate that the plainti11 had
asked for tho increase of the labour rate per cooly by 20% and that
the enhanced rates approved by the Corporation-defendant were
F
not accepted by the plaintiff. Paragraph 12 states that the plaintiff
asked for payment under protest to which the defendent was not
agreeable.
Paragraph 13 mentions the enhanced rates to which
the plaintiff considers himself entitled according to the proper
interpretation of clause 17 of the tender.
Paragraph 14 of the
plaint reads :
G
"As the difference between the parties is a bout the
interpretation of clause 17 of the letter of the contractor
dated 24-9-1949 the plaintiff is advised to file the suit in
the declaratory form.
H
The plaintiff reserves the right under 0. 2, r. 2 of the
Code of Civil Procedure to omit to sue in respect of
amount that may be found due upon the interpretation
placed by the plaintiff upon the said clause 17 ·which
interpretation it is submitted is the proper interp1etation.
804
SUPREME
COURT
REPORTS
[1966] I S.C.R.
The plaintiff reserves the right to sue later on tor the
A
amount found due to him."
?aragraph 15 states that the cause of action arose on December 6.
1951 when the Corporation refused to allow the incre:~se of 20%.
Paragraph 16 gives the value of the suit for the purp•Jse of jurisdiction to be Rs. 65,000 and said that court-fees of Rs. 20-10-4
B
was paid as the suit was for declaration.
Paragraph 17 said that
the plaintiff claimed (i) leave under 0. 2, r. 2, C.P.C.; and (ii)
that it be declared that the plaintiff is entitled to enhancement of
20% over the tendered rates for the different cat~goncs of e.xcavation work as detailed in paragraph 13 of the plaint in connectio~
with the work of excavation in foundation of tht> Tilaiya Dan:
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The plaint contained 3 annexures.
Annexure A was the letter which ultimately constituted the
lender.
The schedule to the tender described the class and descrip·
lion of work to be executed, unit of calculation and the rate of
payment.
Annexure B was the letter from the plaintiff to the
Executive Engineer dated March 11, 1950 stating the difficulties
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in the performance of the contract.
Anne:imre C was the letter
from the Executive Engineer dated March 15-16, 1950 conveying
the approval of an enhancement of I 0% in the rate over the
tendered rate for the excavation work from the date onward.
Annexure D is the letter from the plaintiff to the Corporation E
dated December 26, 1951 disputing the interpretation of the
Corporation.
It is clear from the plaint and its enclosures that the dispute
between the parties was about the rate to be paid for the different
categories of work and that the plaintiff did not deliberately sue
to recover the amount that might be found due upon the interF
pretation placed by the plaintiff upon the said clause 17.
Paragraph 13 of the written statement filed by the defendant
stated that the defendant did not admit the later part of the statement in para 14 of the plaint which related to the
plainlitrs
reserving his right to sue later for the amount found due at the G
enhanced rate.
The defendant, inter alia, contested the suit on
the ground that the suit was not maintainable in the form in which
it had been framed. Paragraph 16 of the written statement stated
that the Corporation was ever ready and willing and was still
willing to pay the legitimate dues to the plaintiff.
Issue No. 2 of the issues framed m the case was : 'Is the suit
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maintainable in its present form ?'
The trial Court stated in its
judgment:
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"The defendant also pleaded that the plaintiff has
no cause of action, the suit is not maintainable in the
present form and the court-fees paid
is insufficient.
But these allegations were not pressed at the time of
hearing."
805
It accepted the contention for the plaintiff that it was entitled
to over-all increase by 20% in accordance with cl. 17 of the
tender. It further said :
"No objection has been pressed as to the plaintiff's
prayer regarding leave under 0. 2, r. 2, C.P.C. That
must therefore be allowed."
It accordingly decreed the suit.
On appeal, the High Court accepted the respondent's contention that in view of the proviso to s. 42 of the Specific Relief Act
the suit for mere declaration was not maintainable and that the
trial Court was not right in granting permission under r. 2 ( 3) of
0. 2, C.P.C. to the plaintiff to institute another suit for the amount
to which the plaintiff be entitled after the declaration sought for
in the suit had been granted. The prayer for amending the
plaint was rejected as the money claimed had become time..
barred Jong before the prayer was made during the arguments
before the High Court and as there existed no special circumstances to justify the grant of the amendment against the interest•
of the defendant-respondent.
The High Court therefore allowed
the appeal and dismissed the suit.
It however granted leave to
appeal as the requirements of art. 133(1)(a) of the Constitution
were satisfied.
Learned counsel for the appellant has contended that there
exists such special circumstances in the case which would have
justified, in the interests of justice, the grant of the application for
amendment of the plaint and, in the alternative, contended that
the High Court should not have allowed the respondent to object
to the maintainability of the suit on the basis of the proviso to
'· 42 of the Act and if the Court had allowed such an objection
it should have, as a matter of course, allowed the application for
amendment.
I propose to dispose of the second contention first.
The contention about the maintainability of the suit was based on s. 42
of the Act and had to be allowed.
The Court could not make a
declaration unless further relief had been prayed for.
It was
incumbent on the Court to comply with this requirement of law,
806
SUPREME COURT REPORTS
( 1966] 1 S.C.R.
even if not raised by the party, when it was clear that further
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relief could be claimed in the suit.
Further, in this
particular
case, it cannot be said that no objection had been raised on this
ground by the respondent up to the stage of the appeal in the
High Court.
In paragraph 2 of the written statement, the respondent questioned the maintainability of the suit in the form in
which it was instituted.
Issue No. 2 was framed in that connecB
tion.
The contention was not given up by the respondent.
It
was simply not pressed on his behalf, possibly, because it felt
strong on the contention on the basis of which the declaration was
sought.
I therefore do not consider the High Court in error in
allowing the respondent to raise the objection to the maintainability of the suit on account of the plaintiff not having asked
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for the further relief.
It does not however follow that the appellant must have been
allowed, as a matter of course, to amend the plaint by adding
a claim for recovery of the amount found due.
The various cases relied on in support of this contention are
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cases in which the fresh relief claimed by way of amendment was
not affected by the law of limitation and the objection to the
maintainability of the suit had not been taken at an early stage
of the suit. Reference need not be made to all those ca'cs except
to the one reported as Rukhmabai v. Vila Laxminarayan( 1 )
in
which this Court observed :
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"It is a well-settled rule of practice not to dismiss
suits automatically but to allow the plaintiff to make
necessary amendment if he seeks to do so."
Neither the question of limitation arose in that case nor did the
Court consider it necessary for the plaintiff to have asked for
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consequential relief.
The above observation cannot be taken to
be a pronouncement in connection with amendments sought in
the pleadings when they be with respect to claims which had
become time-barred.
It is now well-settled that the Court has power to allow
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amendments in connection with claims which had become time.-
barred, if special circumstances exist and it be in the interests of
justice.
This is not disputed for the respondent.
The real dispute between the parties is whether the c'rcumstances of the
case come within the principle laid down in the various cases.
This necessarily leads to a consideration of the circumstances and
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the amendments sought in those cases.
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(I) (1960) 2 S.C.R. 253, lSS.
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807
Before referring to the cases, I may set out the provisions
of the Code which empower the Court to allow amendment of
pleadings. Section 153 and O. 6, r. 17, deal with the matter.
Section 15 3 reads :
"The Court may at any time, and on such terms as
to costs or otherwise as it may think fit, amend any
defect or error in any proceeding in a suit; and all
necessary amendments shall be made for the purpose
of determining the real question or issue raised by or
depending on such proceeding."
Rule 17 of 0. 6 reads:
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"The Court may at any stage of the proceedings
allow either party to alter or amend his pleadings in
such manner and on such terms as may be just, and all
such amendments shall be made as may be necessary
for the purpose of determining the real questions in
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controversy between the parties."
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These indicate that the amendment should be in such manner
as may be just and that, as a rule, all such amendments shall
be made as be necessary for the purpose of determining the real
questions in controversy between the parties. No
amendment
would be just if it so prejudices the interests of the other party
for which that party cannot get any relief from the Court.
The
amendments which must be allowed can be those in the absence
of which the Court may not be able to determine the real question
in controversy between the parties.
The real question in controversy must be gathered only from the plaint and to some
extent from the allegations in the written statement. If the
point to be decided as a result of the amendment is not covered
by the controversy raised by the plaint and the written statement,
the amendment is not to be allowed necessarily, for the simple
reason that it is unnecessary for determining the real questions in
controversy between the parties.
The Court has to decide the
G suit instituted before it and with respect to the controversies
raised in it.
It follows that the amendments to be allowed relate
to such matters which, due to bad drafting of the plaint. could
not be clearly and precisely expressed, though the parties did
really intend to have those matters determined by the Court. The
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object of the amendment of the pleadings is to clarify the pleadings for bringing into prominence the real controversy between
the parties and not for helping a party by making such amendments which be beneficial to him in connection with some dispute
808
SUPREME COUllT REPORTS
[1966] I S.CR.
between the parties, a
dispute which has
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been really
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taken to the Court for decision and which the parties did not
really intend to be decided in that suit. This seems to me to be
the real basis for an order of the Court in connection with such
amendments sought by a party in its pleadings as would raise a
claim which has become time-barred.
None of the cases referred to by the parties hold differently.
The cases which are to be considered in this connection arc :
Kisandas Rupchand v. Rachappa
Vithoba('); Charan Das v.
Amir Khan( 2 ); L. J. Leach & Co.
Ltd. v.
Jardine Skinner
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& Co.( 1); and Pirgonda Hongonda Patil v. Kalgonda Shidgonda
Patil('). Reference to Kisandas's case(') is necessary as some c
of the observations in that case were approved by this Court in
the last case(').
In Kisandas's case('), the plaintiff sued for dissolution of
partnership and accounts alleging that in pursuance of the partner5hip agreement they had delivered Rs. 4,001 worth of cloth to the
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defendants.
The Court found that the alleged agreement was
not a partnership agreement bui evidenced the advance of a simple
loan by the plaintiffs to the defendants.
The trial Court held
that the plaintiffs had really delivered cloth worth Rs. 4,00 I to
the defendants, but dismissed the suit as no decree for dissolution
of partnership and for accounts could be 1:iven and the plaintiff E
had not asked to amend the plaint. In the first Anpellate Court
the plaintiffs-appellants accepted the findings of the trial Court
that no partnership was constituted by the agreement and prayed
for leave to amend by adding a prayer for
the
recovery of
Rs. 4,00 I. The appellate Court was of opinion that the plainF
tiffs had from the first intended to sue only for the recovery of
money but had been mi<led by their pleader, allowed the amendment to be made and ultimately decreed the claim for Rs. 4,001.
On the date of the amendment, it may be noted, most of the
claim had become time-barred.
In the second appeal, Batchelor
J., said at p. 651 :
"Falling back, then, upon the words of the Rule, I
cannot follow the argument that there would be any
injustice to the appellants in allowing the amendment,
for the only effect of it is to enforce their liability for
a debt which was claimed, disputed, and found to be
due long before the defence of limitation was available."
(t) I.LR. 33 Born. 644.
(3) Jt957] S.C.R. 43S.
(2} LR. 47 I.A. 25l.
(4) [1957] S.C.R. 59S.
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809
A Earlier, after referring to the provisions of 0. 6, r. 17, he had
said at p. 649 :
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"From the imperative character of the last sentence
of the rule it seems to me clear that, at any stage of the
proceedings, 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."
These observations have been approved by this Court in Patifs
case(') where the Court said, at p. 604 :
"The same principles, we hold, should apply in the
present case.
The amendments do not really introduce
a new case, and the application filed by the appellant
himself showed that he was not taken by surprise; nor
did he have to meet a new claim set up for the first
time after the expiry of the period of limitation."
Batchelor J., further said, at p. 652 (Kisandas's case) (2), after
referring to certain statements of the plaintiff in the trial Court :
"It is difficult to imagine how the plaintiff could
have more clearly professed that, whatever may have
been the attitude of his obstinately unskilful pleader, he
for his part had no concern with the alleged partnership,
but was suing simply to recover his debt.
I
think,
therefore, that the Subordinate Judge would have been
well advised if he had paid more attention to the substance of the suit before him, and taken command of
it himself rather than handed over the conduct of the
suit to a manifestly inexpert pleader; had he taken
this view of his duty as presiding Judge,
the slight
technical difficulty which stood in his way would have
been easily removed."
In Patil' s case ( 1) amendment was allowed in the following
circumstances.
The plaintiff had obtained a decree for possession
against defendant No. 2.
He
was
obstructed
during
execution proceedings by defendant No. 1.
His objection under
0. 21, r. 97 was dismissed and therefore he filed a suit under 0. 21,
r. 103 for a declaration that he was entitled to recover possession
of the suit properties from defendant No. 1.
The contents of
(I) (1957] S.C.R. 595,
(2) I.L.R. 33 Bom. 644.
810
SUPREME COURT
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(1966) 1 S.C.R.
the plaint did not give the facts or the grounds on which the
plaintiff based his title to the properties in suit as against defendant No. I.
ThL~ difficulty was pointed out by defendant No. 1
and subsequently the plaintiff asked for permission to give further
and better particulars of the claim made in the plaint.
This
application was rejected by the trial Court.
The trial Court did
not allow this prayer and dismissed the suit.
The High Court
allowed the amendment of the plaint and this Court agreed with
the order of the High Court.
It is clear, as was observed by
the Court at p. 604, that this was not a case where a new claim
was made by the amendment but was a case where the incomplete
particulars given in the plaint were sought to be made complete
by giving further particulars.
The main object of the plaintiff
was to get a declaration of his right
to
possession
against
defendant No. I.
It was to achieve this object that he instituted
the suit.
He did not specify how he had a right to that property
as against defendant No. I who was said to have no right to
refuse delivery of pos.session to him.
The only principle which
can be deduced from this case is that amendment of the plaint
can be allowed to make the plaint complete in particulars which
would help in determining the real dispute between the parties,
as raised by the plaint itself as originally presented.
Before dealing with Charan Das' case(') reference may be
made to the case reported as Mohummud Zahoor Ali Khan
v.
Mus.rnmat Thakooranee R111ta Kaer(') which has been referred
to in Clinran Das' cast('). In this case the plaintiff brought a
suit against several persons on the allegations that defendant No. 1
had borrowed certain money on a simple money bond executed
on August 9, 1856 and that the other defendants claimed her
property and that therefore the suit be decreed against defendants
and the property mentioned in the plaint, with interest to date
of realisation.
Defendant No. I had also executed another bond
on November 28, 1857 to secure a further advance and had
thereby pledged her zamindari estate to the plaintiff.
The s•.1it
was however not based on the second bond.
The Privy Council
found that the suit should be dismissed against defendants oilier
than defendant No. I and that it was open to the defendant to
ask for a decree for payment of an amount due on the bond
against defendant No. I. but could not claim a decree against
the property on the basis of the second bond.
In that connection
it was observed at p. 4 73 :
(I) LR. 47 I A. 255.
(2) II M.l.A. 468.
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