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Smart Summary

Structured Summary of the Opinion by S.K. Agarwal, J.

Factual and Procedural Background

The appeal challenges the order dated 4th April, 1994 in IA No. 698/91 in Suit No. 624/88, by which a learned Single Judge dismissed the plaintiffs' application under Order 6 Rule 17 read with Section 151 of the Code of Civil Procedure, 1908 seeking amendment of the plaint to enhance the amount claimed (on account of devaluation of the Indian Rupee).

According to the opinion, appellants/plaintiffs filed a suit (the opinion records the filing date as 19th March, 1998) for recovery of Rs. 70,07,104/- for loss and damages suffered due to a fire at the "Siddharth Continental Hotel" on the night of 22/23 January, 1986, which resulted in the death of Michael J. Woolgar. The plaintiffs claimed to be the legal heirs and computed damages on the basis of gross wage of Pounds Sterling 16,000 per annum, using the maxim res ipsa loquitur.

On 24 January 1991 the plaintiffs filed an amendment application under Order 6 Rule 17 read with Section 151 CPC, pleading that their original claim in the plaint represented Pounds Sterling 3,36,880 converted into Indian Rupees at an earlier exchange rate (one pound = Rs. 20/20.80 per the plaint excerpts) to arrive at Rs. 70,07,104/-. They sought to amend the plaint to claim in Pounds Sterling (3,36,880) because the exchange rate had risen (the opinion states one pound had become equivalent to Rs. 36 at the date of the amendment application), and thus they sought a decree in foreign currency or otherwise to reflect the changed exchange rate.

The defendants opposed the amendment, contending that the plaintiffs had quantified their claim in rupees at the time of filing and could not be permitted to claim an amount in excess of that originally pleaded (as any excess would be barred by limitation), and that as per settled law a decree in any foreign currency other than Indian currency could not be passed.

The Single Judge dismissed the plaintiffs' amendment application, and the plaintiffs appealed against that dismissal. The court (Division Bench) heard counsel and reviewed the record before dismissing the appeal.

Legal Issues Presented

  1. Whether a plaintiff who originally claims a money decree in Indian currency may, by amendment under Order 6 Rule 17 read with Section 151 CPC, convert the claim after filing into a claim in a foreign currency (Pounds Sterling) to reflect later changes in the exchange rate.
  2. Whether permitting an amendment that substantially increases the monetary relief sought (by reason of currency fluctuation) would amount to introducing a fresh claim in respect of a cause of action that has become barred by limitation as on the date of the amendment.
  3. Whether, as a matter of law and settled practice, a decree in foreign currency can be granted and what procedural steps (if any) are required when a plaintiff elects to claim in foreign currency at the time of filing.

Arguments of the Parties

Appellants / Plaintiffs

  • The plaintiffs stated that the underlying calculation of damages was in Pounds Sterling (Pounds 3,36,880) and that the plaint converted that figure into Indian rupees at the then-prevailing exchange rate (one pound = Rs. 20/20.80) to arrive at Rs. 70,07,104/-.
  • They argued that because they are resident in Great Britain they were entitled to obtain a decree for the amount in Pounds Sterling and that, due to fluctuations in exchange rates (one pound having become Rs. 36 at the time of the amendment application), an amendment to plead a decree in Pounds was necessary.
  • They sought leave to amend the plaint under Order 6 Rule 17 read with Section 151 to claim the foreign currency sum (or to alter the monetary claim to reflect the changed exchange rate).

Respondents / Defendants

  • The defendants contended that it was immaterial how the plaintiffs had originally computed their claim; the pleadings quantified damages in rupees at the time of filing the suit, and a plaintiff in a money suit cannot subsequently claim an amount in excess of what was pleaded since any such excess would be barred by limitation.
  • They also pleaded that, as per settled law, a decree in any foreign currency other than Indian currency cannot be passed (or, at minimum, that specific procedures and permissions are required before such a prayer may be entertained).

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Forasol's v. Oil and Natural Gas Commission, AIR 1984 SC 241 Set out the practice to be followed when a sum of money expressed in foreign currency can legitimately be claimed and decreed: plaintiff must choose at filing between Indian currency or foreign currency; if claiming foreign currency, the plaint should pray for decree in foreign currency subject to requisite permissions, give an undertaking to make good any court-fee deficiency, and value the suit for jurisdiction based on the exchange rate on the date of filing. The court applied Forasol's principles to conclude that the plaintiffs, having chosen to claim in Indian rupees at the time of filing, had not made the required prayer or given the required undertaking for a foreign-currency decree and thus could not now permissibly change that choice to the disadvantage of the defendant.
Pirgonda Hongonda Patil v. Kalgonda Shidgonda Patil & Ors., AIR 1957 SC 363 Principle that amendments to pleadings ought to be allowed only if they do not cause injustice to the other side and are necessary to determine the real questions; an amendment introducing a fresh claim which has become barred by limitation must be refused. The court relied on this authority to hold that allowing the proposed amendment would effectively set up a fresh claim (increasing the monetary relief substantially) that was barred by limitation at the date the amendment was sought, and would cause injustice to the defendants.
Kisandas Rupchand v. Rachappa Vithoba Shilvant, 33 Bom. 644 (quoted in Pirgonda) Quoted for the benchmark test: amendments should be refused only where the other party cannot be placed in the same position as if the pleading had originally been correct and the amendment would cause injury not compensable in costs; specifically disallowing amendments that introduce claims barred by limitation. The court accepted the doctrine as correctly stated and applied it to find that the proposed amendment would deprive the defendant of a limitation defence and thus should be refused.

Court's Reasoning and Analysis

The court's analysis proceeded in a sequence of legal findings grounded on the pleadings and the authorities cited:

  1. Nature of the original claim: By reproducing paragraphs 13, 15 and 17 of the plaint and Annexure 'A', the court observed that the plaint displayed a calculation in Pounds Sterling but expressly pleaded a claim for Rs. 70,07,104.00 and fixed the value of the suit and court-fees on that rupee figure. Thus, on the face of the plaint, the plaintiffs had exercised the option to claim in Indian currency when they instituted the suit.
  2. Legal framework for foreign-currency claims: Relying on the Supreme Court's exposition in Forasol's (AIR 1984 SC 241), the court summarized the applicable practice: a plaintiff must choose either Indian currency (by converting the foreign sum to rupees at an appropriate exchange rate) or foreign currency (making a specific prayer for a foreign currency decree, subject to required permissions under the Foreign Exchange law, and giving an undertaking to make good any court-fee deficiency at the date of judgment).
  3. Failure to follow the required practice: The court found that the plaintiffs had not prayed for a foreign-currency decree nor given the requisite undertaking in the plaint as envisaged by Forasol's, and hence had not pursued the procedural route required to maintain a foreign-currency claim.
  4. Amendment doctrine and limitation: The court recalled the settled doctrine (as restated in Pirgonda and traced to Kisandas Rupchand) that amendments should be permitted only when they do not work injustice to the other side and do not introduce a fresh cause of action or a claim which has become barred by limitation. The test is whether the amendment can be allowed without causing injustice that cannot be compensated by costs.
  5. Application to facts: Allowing the proposed amendment would effectively increase the monetary relief sought to almost double the amount originally pleaded; this change in "quantity" of relief means introducing a fresh claim in respect of the same cause of action which, as of the date the amendment was sought, would be barred by limitation. Such an amendment would therefore cause injustice to the defendants which could not be compensated merely by costs.
  6. Conclusion on amendment: For these reasons — failure to adopt the procedure required for seeking a foreign-currency decree and the principle against amendments that introduce a barred claim or cause uncompensable prejudice — the court upheld the Single Judge's refusal to permit the amendment.

Holding and Implications

Holding: The court affirmed the order of the learned Single Judge and dismissed the appeal. The core ruling may be stated as: the plaintiffs' application to amend the plaint under Order 6 Rule 17 read with Section 151 CPC to alter the monetary claim (by seeking a decree in foreign currency or otherwise increasing the quantum to reflect exchange-rate fluctuations) was rightly refused.

Implications:

  • Direct effect on the parties: The amendment application remains dismissed and the plaintiffs are not permitted to change their pleaded claim from the rupee amount to a higher foreign-currency-based claim; the appeal was dismissed with no order as to costs.
  • Broader precedent or new rule: The opinion applies and reiterates existing Supreme Court principles (notably Forasol's and the Pirgonda line) regarding election between rupee and foreign-currency claims and the limits of permissible amendment. The judgment does not purport to lay down a new principle beyond applying established authorities to the facts at hand.

Note: This summary is based exclusively on the information contained in the provided opinion. No information not present in the opinion has been added or inferred.

    Janet Anne Woolqar James & Ors v. Jaypee Hotel Ltd..

    S.K Agarwal, J.— This appeal is directed against the order dated 4th April, 1994 in IA No. 698/91 in Suit No. 624/88, passed by the learned single Judge of this Court, dismissing the application of the appellant plaintiff under Order 6 Rule 17 read with Section 151 of the Code of Civil Procedure, 1908 (for short the Code), seeking amendment of the plaint so as to enhance the amount of claim in the suit, on account of devaluation of Indian Rupee.

    Facts giving rise to this appeal briefly are that appellants/plaintiffs filed on 19th March, 1998 a suit for recovery of money for a sum of Rs. 70,07,104/- (seventy lacs seven thousand one hundred Four only) for loss and damages suffered by them due to the carelessness, negligence and default attributable to officers or other employees in a fire that broke out in their hotel then known as “Siddharth Continental Hotel” situated at Vasant Vihar, New Delhi on the nigh of 22/23rd January, 1986, resulting in death of Mr. Michael J Woolgar. The claim was made on the basis of maxim of res-ipsa-loquitor. The plaintiffs, claimed to be the legal heirs of the deceased, Michael J Woolgar. The damages were computed on the basis of gross wage of Pounds Sterling 16,000/- per annum, of the deceased.

    Appellants-plaintiffs filed an application under Order 6 Rule 17 read with Section 151 of the Code, on 24.1.91 pleading therein, that they had claimed damages for Pound Sterlings 3,36,880/- as damages, particulars of which were given in the chart annexed to the plaint. After converting Pound Sterlings into Indian currency at the then prevailing exchange rate, one Pound Sterling being equivalent to Rs. 20/-, a decree for Rs. 70,07,104/- was prayed. It was pleaded that the plaintiffs being resident of Great Britain were entitled to get a decree for Pound Sterlings 3,36,880/-; on the date of filing of the amendment application one pound sterling had become equivalent to Rs. 36/-, and that in view of the fluctuations in the exchange rates necessity had arisen to seek amendment to the plaint, so as to include the prayer for a decree in Pound Sterlings in lieu of Indian currency.

    Opposing the proposed amendment the respondent/defendants in reply pleaded that it is immaterial how plaintiffs had calculated their claim but had quantified the damages or loss, in terms of Rupees, at the time of filing of suit; in a money suit plaintiffs cannot be permitted to claim any amount over and above the amount claimed in the suit as any such claim for the excess amount would be barred by limitation. It was also pleaded that as per the settled law a decree in any foreign currency other than the Indian Currency, cannot be passed.

    The learned Singe Judge, vide impugned order dismissed the amendment application of the appellants. We have heard learned counsel for the parties and have been taken through the record.

    In order to appreciate the rival contentions para 13, 15, 17 of the plaint as originally filed are reproduced below:—

    “13. In the circumstances, aforesaid the Defendant is liable to pay to the plaintiffs a sum of Rs. 70,07,104.00 towards loss and damages, suffered by the plaintiffs due to the carelessness, negligence and default of the Defendant, the details whereof are given in a chart which is annexed hereto and marked Annexure ‘A’ and may be read and treated as a part of this plaint as if the same was incorporated herein and formed a part thereof.

    Annexure ‘A’

    Particulars of Damages/Claim referred

    To in Paragraph 13 of the Plaint

    1. Salary of late Michael John Woolgar James Pounds 16,000 p.a 2. His allowance Pounds Nil a) Bonus Pounds Nil b) Overtime on the basis of average of last six months i.e, from July 1985 to December, 1985 Pounds Nil c) Company Car Pounds 4500 d) Medical Insurance Health care Pounds 250 Pounds 4750 Total gross earning per year Pounds 20750 3. Deduction of tax Pounds 3906 4. Net salary income per year Pounds 20750 (-) Pounds 3750 Pounds 16844 5. Claim for damages/compensation by using multiplier of 20 years (being the further number of years of service of years of service of years of service of late Michael John Woolgar James in employment till his retirement at the age of 65 years) : Pounds 16844 × 20 Pounds 3,36,880/- 6.a) Total claim amount in Indian Rupees (converted at the prevailing exchange rate of Pounds 1 = Rs. 20.80) Pounds 3,36,880 Rs. 70,07,104.00

    15. The value of the suit for the purposes of court fees and jurisdiction is Rs. 70,07,104.00 and a Court fees of Rs. 70,761.60 has been paid on the plaint accordingly.

    17. In the premises, the plaintiffs claim:

    (a) a decree for Rs. 70,07,104.00 in favour of the plaintiffs and against the Defendant;

    (b) interest at 18% per annum from the date of suit till realisation of the decretal amount;

    (c) costs of the suit;

    (d) such further reliefs as this Hon'ble Court may deem fit and proper in the facts and circumstances of the case.

    Law is now well settled with regard to the cases wherein a sum of money expressed in foreign currency can legitimately be claimed and decreed by the court. At the time of filing of the suit plaintiff has to make a choice. He can either claim the amount due to him in Indian currency or in foreign currency in which it is payable. In case the plaintiff chooses for a decree in foreign exchange for a claim of the amount due to him, in such a case he must make a prayer in the plaint for a decree in foreign currency, subject to the permission being granted by the concerned authorities. He is further required to give an undertaking in the plaint that he would make good deficiency in the court fee, if any, on the date of the judgment at the then prevailing exchange rate.

    Supreme Court while setting out practice that is required to be followed in such like cases in Forasol's v. Oil and Natural Gas Commission AIR 1984 SC page 241 laid down the following principles:—

    “70. It would be convenient if we now set out the practice, which according to us, ought to be followed in suits in which a sum of money expressed in a foreign currency can legitimately be claimed by the plaintiff and decreed by the court. It is unnecessary for us to categorize the cases in which such a claim can be made and decreed. They have been sufficiently indicated in the English decisions referred to by us above. Such instances can, however, never be exhaustive because the law cannot afford to be static but must constantly develop and progress as the society to which it applies, changes its complexion and old ideologies and concepts are discarded that the case with which we are concerned was one which fell in this category. In such a suit, the plaintiff, who has not received the amount due to him desires to seek the assistance of the court to recover that amount has two courses open to him. He can either claim the amount due to him in Indian currency or in the foreign currency in which it was payable. If he chooses the first alternative he can only sue for that amount as converted into Indian Rupees and his prayer in the plaint can only be for a sum of Indian currency. For this purpose the plaintiff would have to convert the foreign currency amount due to him into Indian rupees. He can do so either at the rate of exchange prevailing on the date when the amount because payable for he was entitled to receive the amount on that date or, at his option, at the rate of exchange prevailing on the date of the filing of the suit because that is the date on which he is seeking the assistance of the court for recovering the amount due to him. In either event, the valuation of the suit for the purposes of court fees and the pecuniary limit of the jurisdiction of the court will be the amount in Indian currency claimed in the suit.

    The plaintiff may, however, choose the second course open to him and claim in foreign currency the amount due to him.

    In such a suit the proper prayer for the plaintiff to make in his plaint would be for a decree that the defendant to pay to him the foreign currency sum claimed in the plaint subject to the permission of the concerned authorities under the Foreign Exchange Regulation Act, 1973 being granted and that in the event of the foreign exchange authorities not granting the requisite permission or the defendant not wanting to make payment in foreign currency even though such permission has been granted or the defendant not making payment in foreign currency or in Indian Rupees, whether such permission has been granted or not the defendant do pay to the plaintiff the rupee equivalent of the foreign currency sum claimed at the rate of exchange prevailing on the date of the judgment.

    For the purposes of court fee and jurisdiction the plaintiff should, however, value his claim in the suit by converting the foreign currency sum claimed by him into Indian rupees at the rate of exchange prevailing on the date of the filing of the suit or the date nearest or most nearly preceding such date, stating in his plaint what such rate of exchange is.

    He should further give an undertaking in the plaint that he would make good the deficiency in the court fees, if any, if at the date of the judgment, at the rate of exchange then prevailing, the rupee equivalent of the foreign currency sum decreed is higher than that mentioned in the plaint for the purposes of court fees and jurisdiction.” (emphasis supplied)

    Bare perusal of the averments made in the plaint as quoted above would show that the plaintiff had exercised option of claiming decree in Indian currency. They had neither made prayer for a decree requiring the defendant to pay the decretal amount in foreign currency nor they had given any undertaking in the plaint that they would make good the deficiency in the court fee, if any, at the exchange rate prevailing on the date of the judgment.

    It is equally well settled that an amendment can be allowed if the same does not cause any injustice to the other party. In the absence of special circumstances a plaintiff cannot be allowed to amend his plaint by introducing a cause of action which since the date of the presention of plaint has become barred by the limitation. Reference can be made to law laid down in Pirgonda Hongonda Patil v. Kalgonda Shidgonda Patil & Ors. AIR 1957 SC 363 wherein Supreme Court, after examining several earlier decisions, quoted with approval the observation of Batchelor, J in Kisandas Rupchand v. Rachappa Vithoba Shilvant, 33 Bom. 644 as the correct position of law which are as under:—

    “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….But I refrain from citing further authorities, as, in my opinion they all lay down precisely the same doctrine.

    That doctrine, as I understand it, is that 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. The ultimate test therefore, still remains the same can the amendment be allowed without injustice to the other side, or can it not?”

    Applying the above principles to the facts of the present case we find that the suit was filed in year 1988, for a sum of about Rs. 70,07,104.00. In case the proposed amendment is allowed the claim of the plaintiffs gets enhanced to almost double the amount. Thus “quantity” of the relief does not remain the same. It would amount to permitting the setting up a fresh claim in respect of a cause of action which had become barred by limitation on the date when the amendment was sought. Amendment, if allowed, would undoubtedly cause injustice to the defendants for which they cannot be compensated in terms of costs.

    We are of the considered view that as per the authoritative pronouncement of Supreme Court in Forasol's case (supra) the plaintiffs having already made a choice at time of filing of the suit in 1988 by claiming decree in Indian currency cannot be permitted to change the same to the disadvantage of the defendant.

    The view taken by the learned Single Judge is thus perfectly valid, legal and in accordance with law and does not call for any interference.

    For the foregoing reasons we do not find any merit in the appeal and the same is dismissed with no order as to costs.

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    Comments

    Janet Anne Woolqar James & Ors v. Jaypee Hotel Ltd..
    (Dec 23, 1999)