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Smart Summary

Factual and Procedural Background

This opinion addresses an application filed by the plaintiff seeking amendment of the plaint after the defendant had moved an application for dismissal of the suit or alternatively for taking the plaint off the file. The defendant's application was heard on 19th December 1977. The plaintiff contended that certain calculation mistakes in the plaint were bona fide and inadvertent, particularly the omission of a pleading regarding an agreement for payment of interest. The plaintiff sought to amend the plaint to rectify these mistakes and include the missing pleadings, arguing that the amendments did not change the character or cause of action. The defendant opposed the amendment, challenging the calculations, disputing the entitlement to certain claims such as leave salary and interest, and contending that the amendment would introduce a new cause of action barred by limitation. The court had previously held that it lacked pecuniary jurisdiction based on the plaintiff’s claimed amount.

Legal Issues Presented

  1. Whether the plaintiff should be permitted to amend the plaint to correct calculation errors and include pleadings regarding an agreement for payment of interest.
  2. Whether the proposed amendment would introduce a new cause of action beyond the period of limitation.
  3. Whether the court has jurisdiction to entertain the suit and the application for amendment given the pecuniary limits.
  4. The extent and limits of the court’s discretionary power to allow amendments under Order 6, Rule 17 of the Code of Civil Procedure, especially where limitation is a factor.

Arguments of the Parties

Plaintiff's Arguments

  • The mistakes in calculation were bona fide and inadvertent and should be rectified by amendment.
  • Interest had been claimed in the original plaint, but the agreement for payment of interest was omitted inadvertently and should be included.
  • The proposed amendments are necessary for determination of the real issues and do not change the cause of action.

Defendant's Arguments

  • The plaintiff’s calculations are erroneous, including interest calculations and total claimed amount.
  • The plaintiff is not entitled to leave salary as he did not complete one year's service.
  • No agreement for payment of interest was pleaded originally, so interest cannot be allowed.
  • The amendment would introduce a new cause of action beyond the period of limitation.
  • The court lacks pecuniary jurisdiction as plaintiff’s claim is below Rs. 50,000/-.
  • The court has no jurisdiction to entertain the amendment application due to lack of pecuniary jurisdiction.
  • The amendment application is delayed and should be rejected.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
(1974) 2 SCC 393 : AIR 1974 SC 1126 Wide discretionary power under Order 6, Rule 17 to allow amendment in interest of justice despite limitation. Recognized the broad discretion of the court to allow amendments but emphasized judicial caution and circumspection.
AIR 1957 SC 357 Court generally declines amendments if fresh suit would be barred by limitation, but discretion remains to allow amendment in interest of justice. Confirmed that limitation is a factor in discretion but does not bar the court’s power to allow amendment.
82 Cal WN 51 : AIR 1978 Cal 133 (Zohra Khatoon v. Md. Jane Alam) Court cannot grant amendment to confer jurisdiction if it lacks pecuniary or territorial jurisdiction. Applied to hold that since the court lacked pecuniary jurisdiction, it could not allow amendment to bring the case within its jurisdiction.

Court's Reasoning and Analysis

The court acknowledged the plaintiff’s application for amendment to correct bona fide mistakes and include omitted pleadings. However, the court noted the defendant’s challenge that the plaintiff’s calculations were erroneous and that the plaintiff’s claim fell below the pecuniary jurisdictional threshold of Rs. 50,000/-. The court relied on established precedents confirming its wide discretionary power to allow amendments even beyond limitation periods but emphasized that such discretion cannot be exercised to confer jurisdiction where it is absent. Since the court had already held that it lacked pecuniary jurisdiction to entertain the suit, it concluded that it could not grant the amendment application aimed at increasing the claim amount and introducing new pleadings. The court thus reasoned that the amendment would effectively seek to create jurisdiction where none existed, which is impermissible. The court directed the plaintiff to approach the proper court having jurisdiction.

Holding and Implications

DISMISSED

The court dismissed the plaintiff’s application for amendment of the plaint on the basis that it lacked pecuniary jurisdiction to try the suit and therefore could not allow amendment to confer jurisdiction. The direct consequence is that the plaintiff cannot amend the plaint in the current forum and must file the suit in a court having proper pecuniary jurisdiction. The decision does not establish new legal precedent but reaffirms the principle that courts cannot amend pleadings to create jurisdiction where it does not exist.

    Ratan Chand Khanna v. Mahendra Kumar

    1. This application has been taken out by the plaintiff for amendment of the plaint. This application has been taken out after the application which has been taken out by the defendant for an order for dismissal of the suit or in the alternative for taking off the plaint from the file was heard by me. The said application was moved on 19th Dec. 1977. In para. 8 of the said petition it has been stated by the plaintiff that there are certain mistakes in calculation which were due to bona fide mistakes and were not known and realised by the plaintiff. As such under the said circumstances the plaint should be amended to rectify those mistakes. It is the plaintiff's further case that although interest has been claimed in the original plaint but through inadvertence the agreement for payment of the interest has not been pleaded in the original plaint. In the premises, the plaintiff craves leave to amend the plaint to include appropriate pleadings to that effect. According to the plaintiff, these amendments are necessary for determination of the real issue between the parties and will not change the character or cause of action of the case, as made out by the plaintiff, Annexure ‘A’ to the said petition which is a copy of the chart which was submitted by the defendant's Advocate would show that the plaintiff's claim in the suit is for Rs. 46,649.39. Mr. A.N Saraf, appearing on behalf of the defendant has submitted that on the face of the plaint it will appear on proper calculation that without the aid of any other document or without referring to the affidavit-in-opposition by mere calculation of the figures and the total given by the plaintiff it would show that the plaintiff's claim is Rs. 46,649.39 and not the figure given by the plaintiff in the plaint itself. According to Mr. Saraf even the calculation of interest at the rate given by the plaintiff is erroneous. Secondly, Mr. Saraf has argued that until and unless the plaintiff works for one year under the terms of the agreement, as set out in the plaint, the plaintiff is not entitled to get leave salary for two months. Moreover, he has submitted that as there is no pleading of any agreement to pay interest, interest cannot be allowed at 12 % per annum or at any other rate at all. According to Mr. Saraf, in para, 2 all the terms of the agreement according to the plaintiff have been set out although the plaintiff has pleaded that the plaintiff would get every year equivalent to three months' salary. There was no pleading regarding any agreement for payment of interest in default of payment of bonus, It is the common case of the parties that the plaintiff's service came to an end or stood terminated on and from the expiry of the month of July, 1974. Now by proposing to introduce the pleading for payment of interest the plaintiff is trying to introduce a new cause of action and that also beyond the period of limitation. By way of amendment the plaintiff wanted to increase the original figure of Rs. 50,071.14 to Rs. 50,629.81. According to Mr. Saraf, from the particulars as given in the plaint in para. 15, it will be evident that calculating interest on bonus @ 12 % would not amount to Rupees 2,704.50 but it would be Rs. 16,069.50 and calculation of interest @ 12 % on the sum of Rs. 4,800/- would be Rs. 366/- and not Rs. 624/- as wrongly given therein. According to Mr. Saraf, the question of proportionate leave salary does not arise as the plaintiff has not put in one year's complete service to entitle him to get the proportionate leave salary. Moreover, according to Mr. Saraf, the sum of Rs. 14,804 given in the said column is beyond the period of three years. As such it is time barred. According to Mr. Saraf, if these calculations are correct, the figure will be much less than Rupees 50,000/-. As such from the face of the plaint it will be apparent that calculation made at the rate shown by the plaintiff is wrong. As such this Court has no pecuniary jurisdiction to try this suit.

    2. Mr. Saraf has further taken the point that as this Hon'ble Court has no pecuniary jurisdiction to try this suit this Court has no jurisdiction to entertain the application for amendment of the plaint. According to Mr. Saraf, by making the new amendment the plaintiff would be introducing a new cause of action. Moreover, the present application has been made after long delay. As such no order should be passed on this application. In a case reported in (1974) 2 SCC 393 : AIR 1974 SC 1126 it has been held that power to allow an amendment under O. 6, R. 17 is undoubtedly wide and may at any stage be appropriately exercised in the interest of justice, the law of limitation notwithstanding but the exercise of such far reaching discretionary powers is governed by judicial consideration and wider the discretion greater ought to be the care and circumspection on the part of the Court.

    3. In a case reported in AIR 1957 SC 357 where it has been held that - “It is no doubt true that the Court would as a rule decline to allow amendments if a fresh suit on the amendment claimed would be barred by limitation on the date of the application but that is a factor to be taken into account in exercise of 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 interest of justice.”

    4. From the series of decisions it would appear that power of the Court to grant an amendment even beyond the period of limitation in proper cases is unfettered. Whether the plaintiff's proposed amendments will introduce any new cause of action or not becomes redundant for the decision of this application in view of the judgement reported in 82 Cal WN 51 : (AIR 1978 Cal 133) (Zohra Khatoon v. Md. Jane Alam) wherein it has been held by a Division Bench of this Court that where the Court lacks jurisdiction either pecuniary or territorial it cannot grant any amendment of the plaint to bring the case within its jurisdiction. As such in view of my decision in the earlier application holding that this Court has no jurisdiction to entertain the present suit in view of the claim of the plaintiff falling short of Rs. 50,000/- I am not in a position to grant any amendment on the said application.

    5. The proper application for amendment may be made before the proper court which has jurisdiction to try this suit.

    6. As such I dismiss this application.

    7. Application dismissed.

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    Ratan Chand Khanna v. Mahendra Kumar
    (Feb 28, 1978)