1989 JTR(SC) 637
1990 AllCJ 177 ; 1990 CivCC 277 ; 1990 1 CurCC(SC) 262 ; 1990 1 GLH 17 ; 1990 ILR(Kar) 3273 ; 1990 ISJ(Banking) 401 ; 1989 4 JT 524 ; 1990 1 MhLJ(SC) 212 ; 1990 1 RCR(Rent) 229 ; 1992 RLR 26 ; 1990 1 RRR 222 ; 1989 2 Scale 1323 ; 1990 1 SCC 166 ; 1989 Supp2 SCR 474
SUPREME COURT OF INDIA
GAJANAN JAIKISHAN JOSHI
Versus
PRABHAKAR MOHANLAL KALWAR
Decided on, December 13, 1989
Act Referred :SPECIFIC RELIEF ACT : S.16(c)
(A) The appeal pertains to the applicability of Section 16(c) of the Specific Relief Act, 1963, in the context of a suit for specific performance of a contract for the sale of immovable property. The plaintiff-appellant filed a suit seeking specific performance of a registered sale agreement, praying for a decree for execution of the sale deed. The suit property was already in the possession of the plaintiff, and the agreement provided for execution of the sale deed upon obtaining a No Objection Certificate or requisite permission under the Karnataka Urban Land Ceiling Act. The plaintiff sought to amend the plaint to add an averment that he was and had always been ready and willing to perform his part of the contract. The learned Single Judge of the High Court rejected the application for amendment, holding that it was filed beyond the period of limitation and that allowing it would disturb a vested right of the respondent. This decision is challenged on appeal. The principles laid down in earlier precedents of this court, including those relating to the discretion to allow amendments and the specific requirements of Section 16(c), are directly in point.
(B) All amendments to the plaint should be allowed if they satisfy the twin conditions of not working injustice to the other side and being necessary for determining the real questions in controversy. Amendments ought to be refused only where they would cause an injury that cannot be compensated in costs. An application for amendment seeking to cure an omission, such as the missing averment of readiness and willingness to perform, does not raise a fresh cause of action and does not warrant denial of amendment merely on the basis of technical delay if substantial justice so demands.
Facts of the case:
The appellant was the plaintiff in Original Suit No. 103 of 1981 before the 2nd Additional Civil Judge, Belgaum. On 16/07/1976, the respondent defendant entered into an agreement for the sale of a shop and a bhatti room at Kirloskar Road, Belgaum City, for Rs. 20,000. The appellant paid Rs. 5,000 as part consideration and took possession of the property. The agreement stipulated that the registered sale deed would be executed by the respondent after securing a No Objection Certificate or permission from the competent authority under the Karnataka Urban Land Ceiling Act, within one month of such permission. The requisite permission was obtained on 31/03/1981, but the respondent failed to execute the registered deed of sale. The appellant filed the suit for specific performance. The plaint did not aver that the appellant was and had always been ready and willing to perform the agreement. The respondent raised the contention that the suit was not maintainable under Section 16(c) of the Specific Relief Act. The application for amendment to add the missing averment was rejected by the learned Additional Civil Judge, a decision upheld by the High Court.
Findings of Court:
The learned Single Judge was in error in rejecting the application for amendment. The amendment sought was not for the introduction of a fresh cause of action but was necessary to complete the existing cause of action for specific performance. The omission of the averment regarding readiness and willingness was likely inadvertent and its correction does not cause any injustice to the respondent. The principles laid down in Pirgonda Hongonda Patil v. Kalgonda Shidgonda Patil and LJ. Leach and Co. v. Mis Jardine Skinner and Co. Ltd. support the grant of amendment in these factual and legal circumstances.
Issues:
Whether an application for amendment to add an averment of readiness and willingness to perform a contract for specific performance can be allowed after the expiry of the limitation period for filing a fresh suit.
Ratio Decidendi:
Section 16(c) of the Specific Relief Act does not preclude the allowance of an amendment to cure an omission if the amendment is necessary for determining the real questions in controversy and does not work injustice to the other party. The denial of amendment on the ground of technical delay is not sustainable where no fresh cause of action is sought to be introduced and the denial would cause manifest injustice.
Result:
The appeal is allowed. The amendment is permitted. The matter is remanded to the trial court to proceed with the amended plaint and dispose of the case on merits.
(A) The appeal pertains to the applicability of Section 16(c) of the Specific Relief Act, 1963, in the context of a suit for specific performance of a contract for the sale of immovable property. The plaintiff-appellant filed a suit seeking specific performance of a registered sale agreement, praying for a decree for execution of the sale deed. The suit property was already in the possession of the plaintiff, and the agreement provided for execution of the sale deed upon obtaining a No Objection Certificate or requisite permission under the Karnataka Urban Land Ceiling Act. The plaintiff sought to amend the plaint to add an averment that he was and had always been ready and willing to perform his part of the contract. The learned Single Judge of the High Court rejected the application for amendment, holding that it was filed beyond the period of limitation and that allowing it would disturb a vested right of the respondent. This decision is challenged on appeal. The principles laid down in earlier precedents of this court, including those relating to the discretion to allow amendments and the specific requirements of Section 16(c), are directly in point.
(B) All amendments to the plaint should be allowed if they satisfy the twin conditions of not working injustice to the other side and being necessary for determining the real questions in controversy. Amendments ought to be refused only where they would cause an injury that cannot be compensated in costs. An application for amendment seeking to cure an omission, such as the missing averment of readiness and willingness to perform, does not raise a fresh cause of action and does not warrant denial of amendment merely on the basis of technical delay if substantial justice so demands.
Facts of the case:
The appellant was the plaintiff in Original Suit No. 103 of 1981 before the 2nd Additional Civil Judge, Belgaum. On 16/07/1976, the respondent defendant entered into an agreement for the sale of a shop and a bhatti room at Kirloskar Road, Belgaum City, for Rs. 20,000. The appellant paid Rs. 5,000 as part consideration and took possession of the property. The agreement stipulated that the registered sale deed would be executed by the respondent after securing a No Objection Certificate or permission from the competent authority under the Karnataka Urban Land Ceiling Act, within one month of such permission. The requisite permission was obtained on 31/03/1981, but the respondent failed to execute the registered deed of sale. The appellant filed the suit for specific performance. The plaint did not aver that the appellant was and had always been ready and willing to perform the agreement. The respondent raised the contention that the suit was not maintainable under Section 16(c) of the Specific Relief Act. The application for amendment to add the missing averment was rejected by the learned Additional Civil Judge, a decision upheld by the High Court.
Findings of Court:
The learned Single Judge was in error in rejecting the application for amendment. The amendment sought was not for the introduction of a fresh cause of action but was necessary to complete the existing cause of action for specific performance. The omission of the averment regarding readiness and willingness was likely inadvertent and its correction does not cause any injustice to the respondent. The principles laid down in Pirgonda Hongonda Patil v. Kalgonda Shidgonda Patil and LJ. Leach and Co. v. Mis Jardine Skinner and Co. Ltd. support the grant of amendment in these factual and legal circumstances.
Issues:
Whether an application for amendment to add an averment of readiness and willingness to perform a contract for specific performance can be allowed after the expiry of the limitation period for filing a fresh suit.
Ratio Decidendi:
Section 16(c) of the Specific Relief Act does not preclude the allowance of an amendment to cure an omission if the amendment is necessary for determining the real questions in controversy and does not work injustice to the other party. The denial of amendment on the ground of technical delay is not sustainable where no fresh cause of action is sought to be introduced and the denial would cause manifest injustice.
Result:
The appeal is allowed. The amendment is permitted. The matter is remanded to the trial court to proceed with the amended plaint and dispose of the case on merits.
Judgment-
KANIA
( 1 ) THIS is an appeal from a judgment and order of a learned single Judge of the Karnataka High court.
( 2 ) ONLY a few facts are necessary to appreciate the controversy raised before us.
( 3 ) THE appellant herein was the plaintiff in Original Suit No. 103 of 1981 in the court of 2nd Additional Civil Judge, Belgaum. It was the case of the appellant in the plaint that on 16/07/1976 the respondent defendant entered into an agreement in his favour for sale of the suit property comprising a shop and a bhatti room situated at Kirloskar Road, belgaum City for a sum of Rs. 20,000. 00. The appellant paid to the respondent as part consideration a sum of Rs. 5,000. 00 and pursuant to the agreement for sale the appellant was put in possession of the suit property. The sale agreement provided that the registered sale deed was to be executed by the respondent after securing a no Objection Certificate or permission from the competent officer as required under the Karnataka urban Land Ceiling Act and within one month of the grant of such permission. The respondent received the No Objection or permission as aforesaid on 31/03/1981 but failed to execute the registered deed of sale as provided under the said agreement. Hence, on 30/06/1981, the appellant filed the present suit. It may be observed here that in the plaint, there was no specific averment that the appellant was and had always been ready and willing to perform his part of the said agreement. The respondent filed a written statement raising several contentions and inter alia raised the contention that the suit was not maintainable for non-compliance with the provisions of S. 16 (c)of the Specific relief Act, 1963. The issue as to whether the suit was not maintainable on the aforesaid ground was directed to be tried as a preliminary issue. At this stage, the appellant applied for leave to amend the plaint by incorporating an averment in the plaint that the appellant was and had always been ready and willing to perform his part of the said agreement. The learned Additional Civil Judge before whom the said application was made, rejected the same. A revision petition was preferred by the appellant against the judgment of the learned Additional Civil Judge to the high court of Karnataka but the said revision petition was dismissed by a learned Single Judge of the said High court as aforesaid. The learned judge took the view that the application for amendment was filed beyond the period of limitation and the application could not be granted as a vested right of the respondent would be disturbed by allowing the said amendment. It is the correctness of this decision which is challenged before us.
( 4 ) IN the leading case of Pirgonda Hongonda Patil v. Kalgonda shidgonda Patil a bench comprising three learned Judges of this courtlaid down the principles which should govern the question of granting or disallowing amendments. It was held by this court that all amendments ought to be allowed which satisfy the two conditions: (a) 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. It is merely a particular case of this general rule that where a plaintiff seeks to amend by setting up a fresh claim in respect of a cause of action which since the institution of the suit had become barred by limitation, the amendment must be refused; to allow it would be to cause the defendant an injury which could not be compensated in costs by depriving him of a good defence to the claim.
( 5 ) IN LJ. Leach and Co. v. Mis Jardine Skinner and Co. Ltd. , another bench comprising three learned Judges of this court held that it is no doubt true that courts would, as a rule, decline to allow amendments, if a fresh suit on the amended claim would be barred by limitation on the date of the application. But that is a factor to be taken into account in exercise of the discretion as to whether amendment should be ordered, and does not affect the power of the court to order it, if that is required in the interests of justice.
( 6 ) IF these principles are to be followed, there is little doubt that the learned Judge was in error in rejecting the application for amendment made by the appellant. In the present case no fresh cause of action was sought to be introduced by the amendment applied for. All that the appellant sought to do was to complete the cause of action for specific performance for which relief he had already prayed. It was only that one averment required in law to be made in a plaint in a suit for specific performance in view of the provisions of Ss. (c) of S. 16 of the specific Relief Act was not made, probably on account of some oversight or mistake of the lawyer who drafted the plaint and that error was sought to be rectified by the amendment applied for. There was no fresh cause of action sought to be introduced by the amendment and hence, no question of causing any injustice to the respondent on that account arose.
( 7 ) LEARNED counsel for the respondent placed strong reliance on the decision of this court in Ouseph Varghese v. Joseph Aley. In that case, a suit for specific performance was filed by the plaintiff on the basis of an alleged agreement with the first defendant. The defendant denied the agreement and went on to state that just before his death her husband had agreed to sell to the plaintiff Item No. 1 of the suit property less one acre of paddy field for a sum of Rs. 11,000. 00 but due to the illness of herhusband, the sale in question could not be effected. After the written statement to this effect was filed, no application for amendment to the plaint was made. The trial court decreed the suit. In the appeal, the High court did not accept the agreement pleaded by the plaintiff, but granted a decree on the basis of the agreement set out in the written statement. It was held by a bench comprising two learned Judges of this court that the agreement pleaded by the defendant was wholly different from that pleaded by the plaintiff. The plaintiff did not plead either in the plaint or at any subsequent stage that he was ready and willing to perform the agreement pleaded in the written statement and hence, no decree on the basis of that agreement should have been passed in his favour as done by the High court. The court held that it was well settled that in a suit for specific performance, the plaintiff should allege that he is ready and willing to perform his part of the contract and in the absence of such an allegation in the plaint, the suit is not maintainable. In our opinion, this case does not lend any support to the argument of the learned counsel for the respondent, as in the present case there is no question of any decree being passed on the basis of any agreement other than the one pleaded by the appellant in the plaint.
( 8 ) IN the result, the judgment and order passed by the learned Single judge are set aside. The appeal is allowed. The amendment applied for by the appellant is allowed. The amendment to be carried out by the appellant at his own expense within eight weeks of a certified copy of this order being received by the trial court. The trial court shall thereafter give time to the respondent to file a supplementary written statement, if so advised, and dispose of the case on merits according to law. There will be no order as to costs of the appeal.