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Tuesday, January 17, 2012
amendment of plaint rejected , high court order set aside, lower court order upheld as correct= upheld the power that in deserving cases, the Court can allow delayed amendment by compensating the other side by awarding costsThe entire object of the amendment to Order VI Rule 17 as introduced in 2002 is to stall filing of application for amending a pleading subsequent to the commencement of trial, to avoid surprises and that the parties had sufficient knowledge of other’s case. It also helps checking the delays in filing the applications.
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 561 OF 2012
(Arising out of SLP (C) No. 8985 of 2011
J. Samuel and Others .... Appellant (s)
Versus
Gattu Mahesh and Others .... Respondent(s)
J U D G M E N T
P. Sathasivam, J.
1) Leave granted.
2) This appeal is filed against the final judgment and order
dated 08.02.2011 passed by the High Court of Andhra
Pradesh at Hyderabad in Civil Revision Petition No. 5162 of
2010 whereby the High Court while setting aside the order
dated 20.10.2010 passed by the II Additional District Judge,
Karimnagar at Jagtial, allowed the revision petition filed by the
respondents herein.
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3) Brief Facts:
a) The Diocese at Karimnagar was incorporated on
12.03.1978 from its parent Diocese of Dornakal. On
22.08.1985, the Retired Diocesan Treasurer and Property
Secretary, Karimnagar, issued a publication in the paper to
auction the land bearing Survey No. 43, admeasuring Ac. 3.31
gts. situated at Mission Compound, Dharmapuri Road, Jagtial
and the last date to receive the tenders was fixed as
05.09.1985. On 13.09.1985, the sealed tenders were opened
and Gattu Mahesh-Respondent No. 1 herein and Kotha
Mohan-Respondent No. 2 herein, Managing Partners in M/s
Jagath Swapna & Co. put tenders for an amount of
Rs. 24,55,569/- along with a DD for an amount of
Rs.2,45,556/- which is 10% of the EMD. They being the
highest bidders, their tenders were accepted.
b) The contract for sale of property was entered into
between the Respondent Nos. 1 and 2 herein with Karimnagar
Diocese on 27.09.1985. It was mentioned in the contract that
Karimnagar Diocese agreed to receive Rs. 2,50,000/- on or
before 08.11.1985 because the land under sale was under
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dispute and the balance amount was to the paid by the
respondents herein only after getting final dropping of the land
acquisition proposal by the Municipality, Jagtial and sanction
of layout by the Municipality, Jagtial. On 03.04.2003,
Respondent Nos. 1 and 2 herein issued a legal notice to
Karimnagar Diocese informing that the land acquisition
proceedings were dropped on 05.05.1986 and the sanction of
layout by the Municipality, Jagtial was completed on
28.12.1989 and to execute and register the sale deed in their
favour as per the agreement dated 27.09.1985.
c) In the absence of adequate response from Karimnagar
Diocese, Respondent Nos. 1 and 2 filed O.S. No. 9 of 2004 in
the Court of II Additional District Judge, Karimnagar at Jagtial
for specific performance of the contract of sale and for
perpetual injunction. During the pendency of the suit,
Karimnagar Diocese filed written statement pointing out the
inherent defects, namely, absence of mandatory requirements
of Section 16(c) of Specific Relief Act and Form 47, Appendix
`A' of the Code of Civil Procedure, 1908. On 24.09.2010,
respondent Nos. 1 and 2 herein filed I.A. No. 1078 of 2010 in
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O.S. No. 9 of 2004 under Order VI, Rule 17 of the Code
seeking amendment of the plaint to incorporate specific
pleading in compliance of the above section of the Specific
Relief Act and the Code on the ground that the same was
missed due to typographical error. On 04.10.2010,
Karimnagar Diocese filed counter affidavit resisting the
application.
d) By order dated 20.10.2010, the II Additional District
Judge dismissed the application for amendment filed by the
Respondent Nos. 1 and 2 herein. Aggrieved by the order, the
Respondents herein approached the High Court by filing Civil
Revision Petition being No. 5162 of 2010. The High Court, by
impugned order dated 08.02.2011, allowed the amendment
sought for by the Respondent Nos. 1 and 2 herein.
e) Aggrieved by the said decision, the respondents have
preferred this appeal by way of special leave petition before
this Court.
4) Heard Mr. A. Subba Rao, learned counsel for the
appellants and Mr. K. Swami, learned counsel for the
respondents.
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5) The only point for consideration in this appeal is whether
the High Court is right in allowing the application filed under
Order VI Rule 17 CPC for amendment of the plaint which was
filed after conclusion of trial and reserving the matter for
orders.
6) Based on the agreement dated 27.07.1985 which relates
to sale of 3 acres and 31 gunthas of land in Survey No. 43
situate in Mission Compound, Dharmapuri Road at Jagtial for
a consideration of Rs.24,55,569/-, the respondents/plaintiffs
filed the said suit for specific performance. Since we have
already mentioned factual details, there is no need to refer the
same excepting the details relating to the petition filed under
Order VI Rule 17. After filing written statement by the
contesting defendants, the trial of the suit commenced and
admittedly both parties adduced the evidence on their behalf
and arguments on behalf of both the sides were heard and
completed on 22.09.2010. On that day, the Court reserved
the matter for orders. Meanwhile, on 24.09.2010, the
respondents herein filed a petition praying for amendment of
the plaint. In support of the said application, plaintiff No.2
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has filed an affidavit stating that in para 11of the plaint he has
stated about the legal notice issued on 03.04.2003 to
defendant Nos. 1 to 7 for specific performance of agreement of
sale dated 27.09.1985 and there was no reply for it. In para 3
of the affidavit, the deponent has stated that by type mistake,
the following sentences have missed. After para 11 of the
plaint, the following para 12 may be added. "We are and has
been and still is ready and willing specifically to perform the
agreement of sale dated 27.09.1985 on our part of which the
defendants have, had noticed. I am ready with the balance
amount as per agreement of sale dated 27.09.1985. I submit
the para nos. 12-18 of the plaint may be changed as 13 to 19."
The only reason given by the plaintiffs praying for amendment
and inclusion of the above averment in the plaint is "type
mistake". It is also stated that it happened in spite of their
due diligence.
7) The above claim was resisted by the appellants herein by
filing detailed counter affidavit. Apart from disputing the
merits of the claim of the plaintiffs, with regard to the petition
under Order VI Rule 17 they specifically stated that after
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passing several stages in the protracted trial, the final
arguments of the plaintiff in the suit were heard on
20.09.2010. The defendants have also filed their written
arguments on 22.09.2010 wherein the inherent defect of
plaintiff i.e. absence of averments of mandatory requirements
of Section 16(c) Explanation (ii) and Form 47 Appendix A of
CPC was pointed out. Even after this, further argument was
made by both the parties and the counsel for the plaintiff
informed the court that no further time is required and the
matter may be posted for judgment. In view of the same, the
learned trial Judge posted the matter to 04.10.2010 for
judgment. Only at this juncture i.e. on 24.09.2010, plaintiffs
came up with the present petition seeking amendment to
incorporate specific pleading in compliance with Section 16 (c)
of the Specific Relief Act and Form 47 of Appendix A CPC on
the ground that the same was missed due to "type mistake" in
spite of due diligence. Though the said claim was not
acceptable by the trial Court, the High Court allowed the
plaintiff to amend the plaint as prayed for.
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8) Before considering the acceptability or otherwise of the
reasoning of the High Court, it is useful to refer Order VI Rule
17 CPC.
"17. Amendment of pleadings.- 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 controversy between the parties.
Provided that no application for amendment shall be
allowed after the trial has commenced, unless the Court
comes to the conclusion that in spite of due diligence, the
party could not have raised the matter before the
commencement of trial."
The said provision was omitted by the Civil Procedure Code
(Amendment) Act, 1999. Section 16 of the Amendment Act
reads as under:
"16. Amendment of Order 6 - In the First Schedule, in Order
6,--
***
(iii) Rules 17 and 18 shall be omitted."
After stiff resistance by the litigants and the members of the
bar, again Order VI Rule 17 was re-introduced with proviso
appended therein. As per the said proviso, no application for
amendment shall be allowed after the trial has commenced.
However, there is an exception to the said rule, i.e., if the court
comes to the conclusion that in spite of due diligence, the
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party could not have raised the matter before the
commencement of the trial, such application for amendment
may be allowed.
9) Before proceeding further, it is also useful to refer
Section 16(c) of Specific Relief Act which reads as under:
"16. Personal bars to relief.- Specific performance of a
contract cannot be enforced in favour of a person-
(a) xxx
(b) xxx
(c) who fails to aver and prove that he has performed or has
always been ready and willing to perform the essential terms
of the contract which are to be performed by him, other than
terms the performance of which has been prevented or
waived by the defendant.
Explanation.- For the purposes of clause (c),-
(i) where a contract involves the payment of money, it is not
essential for the plaintiff to actually tender to the defendant
or to deposit in Court any money except when so directed by
the Court;
(ii) the plaintiff must aver performance of, or readiness and
willingness to perform, the contract according to its true
construction."
It is clear that in a suit for specific performance of a contract,
unless there is a specific averment that he has performed or
has always been ready and willing to perform the essential
terms of the contract, the suit filed by him is liable to be
dismissed. In other words, in the absence of the above said
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claim that he is always ready and willing to perform his part of
the contract, the decree for specific performance cannot be
granted by the Court.
10) In this legal background, we have to once again
recapitulate the factual details. In the case on hand, Suit O.S.
No. 9 of 2004 after prolonged trial came to an end in
September, 2010. The application for amendment under
Order VI Rule 17 CPC was filed on 24.09.2010 that is after the
arguments were concluded on 22.09.2010 and the matter was
posted for judgment on 04.10.2010. We have already
mentioned that Section 16(c) of the Specific Relief Act
contemplates that specific averments have to be made in the
plaint that he has performed and has always been willing to
perform the essential terms of the Act which have to be
performed by him. This is an essential ingredient of Section
16(c) and the form prescribes for the due performance. The
proviso inserted in Rule 17 clearly states that no amendment
shall be allowed after the trial has commenced except when
the court comes to the conclusion that in spite of due
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diligence, the party could not have raised the matter before the
commencement of the trial.
11) As stated earlier, in the present case, the amendment
application itself was filed only on 24.09.2010 after the
arguments were completed and the matter was posted for
judgment on 04.10.2010. On proper interpretation of proviso
to Rule 17 of Order VI, the party has to satisfy the Court that
he could not have discovered that ground which was pleaded
by amendment, in spite of due diligence. No doubt, Rule 17
confers power on the court to amend the pleadings at any
stage of the proceedings. However, proviso restricts that
power once the trial has commenced. Unless the Court
satisfies that there is a reasonable cause for allowing the
amendment normally the court has to reject such request. An
argument was advanced that since in the legal notice sent
before filing of the suit, there is reference to readiness and
willingness and the plaintiff has also led in evidence, nothing
precluded the court from entertaining the said application
with which we are unable to accept in the light of Section 16(c)
of the Specific Relief Act as well as proviso to Order VI Rule 17.
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The only reason stated so in the form of an affidavit is
omission by "type mistake". Admittedly, it is not an omission
to mention a word or an arithmetical number. The omission is
with reference to specific plea which is mandated in terms of
Section 16(c) of the Specific Relief Act.
12) The primary aim of the court is to try the case on its
merits and ensure that the rule of justice prevails. For this the
need is for the true facts of the case to be placed before the
court so that the court has access to all the relevant
information in coming to its decision. Therefore, at times it is
required to permit parties to amend their plaints. The Court's
discretion to grant permission for a party to amend his
pleading lies on two conditions, firstly, no injustice must be
done to the other side and secondly, the amendment must be
necessary for the purpose of determining the real question in
controversy between the parties. However to balance the
interests of the parties in pursuit of doing justice, the proviso
has been added which clearly states that: no application for
amendment shall be allowed after the trial has commenced,
unless the court comes to the conclusion that in spite of due
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diligence, the party could not have raised the matter before the
commencement of trial.
13) Due diligence is the idea that reasonable investigation is
necessary before certain kinds of relief are requested. Duly
diligent efforts are a requirement for a party seeking to use the
adjudicatory mechanism to attain an anticipated relief. An
advocate representing someone must engage in due diligence
to determine that the representations made are factually
accurate and sufficient. The term `Due diligence' is specifically
used in the Code so as to provide a test for determining
whether to exercise the discretion in situations of requested
amendment after the commencement of trial.
14) A party requesting a relief stemming out of a claim is
required to exercise due diligence and is a requirement which
cannot be dispensed with. The term "due diligence" determines
the scope of a party's constructive knowledge, claim and is
very critical to the outcome of the suit.
15) In the given facts, there is a clear lack of `due diligence'
and the mistake committed certainly does not come within the
preview of a typographical error. The term typographical error
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is defined as a mistake made in the printed/typed material
during a printing/typing process. The term includes errors
due to mechanical failure or slips of the hand or finger, but
usually excludes errors of ignorance. Therefore the act of
neglecting to perform an action which one has an obligation to
do cannot be called as a typographical error. As a consequence
the plea of typographical error cannot be entertained in this
regard since the situation is of lack of due diligence wherein
such amendment is impliedly barred under the Code.
16) The claim of typographical error/mistake is baseless and
cannot be accepted. In fact, had the person who prepared the
plaint, signed and verified the plaint showed some attention,
this omission could have been noticed and rectified there
itself. In such circumstances, it cannot be construed that due
diligence was adhered to and in any event, omission of
mandatory requirement running into 3 to 4 sentences cannot
be a typographical error as claimed by the plaintiffs. All these
aspects have been rightly considered and concluded by the
trial court and the High Court has committed an error in
accepting the explanation that it was a typographical error to
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mention and it was an accidental slip. Though the counsel for
the appellants have cited many decisions, on perusal, we are
of the view that some of those cases have been decided prior to
the insertion of Order VI Rule 17 with proviso or on the
peculiar facts of that case. This Court in various decisions
upheld the power that in deserving cases, the Court can allow
delayed amendment by compensating the other side by
awarding costs. The entire object of the amendment to Order
VI Rule 17 as introduced in 2002 is to stall filing of application
for amending a pleading subsequent to the commencement of
trial, to avoid surprises and that the parties had sufficient
knowledge of other's case. It also helps checking the delays in
filing the applications. [vide Aniglase Yohannan vs.
Ramlatha and Others, (2005) 7 SCC 534, Ajendraprasadji
N. Pandey and Another vs. Swami Keshavprakeshdasji N.
and Others, Chander Kanta Bansal vs. Rajinder Singh
Anand, (2008) 5 SCC 117, Rajkumar Guraward (dead)
through LRS. vs. S.K.Sarwagi and Company Private
Limited and Another, (2008) 14 SCC 364, Vidyabai and
Others vs. Padmalatha and Another, (2009) 2 SCC 409,
15
Man Kaur (dead) By LRS vs. Hartar Singh Sangha, (2010)
10 SCC 512.
17) In the light of the above discussion, we are in entire
agreement with the conclusion arrived by the Trial Court and
unable to accept the reasoning of the High Court. Accordingly,
the order dated 08.02.2011 passed in Civil Revision Petition
No. 5162 is set aside.
18) The civil appeal is allowed with no order as to costs.
.................................................J.
(P. SATHASIVAM)
...............................................J.
(J. CHELAMESWAR)
NEW DELHI;
JANUARY 16, 2012.
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