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2002 INSC 386
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  • Section 5, Subsection 2 of the 1983 Income Tax Act
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Cites
Cited by
Citation Codes
Neutral Citations
2002 INSC 386
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Section 5, Subsection 2 of the 1983 Income Tax Act
Smart Summary

Factual and Procedural Background

The plaintiff-appellant instituted a suit in 1988 seeking a permanent prohibitory injunction on the basis that he was in possession of an agricultural parcel of land. The defendant’s written statement denied the plaintiff’s possession and asserted that the defendant himself was in possession when the suit was filed.

Before the trial commenced, in 1999, the plaintiff filed an application under Order 6 Rule 17 of the Code of Civil Procedure, 1908, seeking to amend the plaint. He alleged that in January 1989, during the pendency of the suit, the defendant had forcibly dispossessed him. On that foundation the plaintiff sought to add prayers for (i) declaration of title and (ii) consequential delivery of possession, with appropriate changes in valuation and court fee.

The defendant opposed the amendment, contending that it introduced a new cause of action, that the suit for recovery of possession was time-barred, and that the defendant had perfected title by adverse possession. The trial court rejected the amendment, suggesting that a fresh suit could be filed. The High Court, in revision, upheld that order. The present appeal challenges those concurrent orders.

Legal Issues Presented

  1. Whether, by virtue of Order 6 Rule 17 CPC, a pending suit for permanent prohibitory injunction can be amended to include reliefs of declaration of title and recovery of possession, based on events alleged to have occurred after the suit was filed.

Arguments of the Parties

Plaintiff-Appellant’s Arguments

  • The defendant forcibly dispossessed the plaintiff in January 1989; therefore additional reliefs for declaration of title and possession became necessary.
  • Allowing the amendment would avoid multiplicity of litigation because the same issues could otherwise be raised in a fresh suit.
  • The application was filed before the commencement of trial, hence no prejudice would be caused to the defendant.

Defendant-Respondent’s Arguments

  • The proposed amendment changes the original cause of action and is therefore impermissible.
  • The suit for recovery of possession is time-barred, and the defendant has acquired title by adverse possession; permitting the amendment would defeat this accrued right.
  • The plaintiff should be compelled to institute a new suit rather than reshape the existing one.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Rukhmabai v. Lala Laxminarayan, AIR 1960 SC 335 Courts should ordinarily allow amendment rather than dismiss a suit filed without an appropriate relief. Invoked to support the view that the plaintiff should be permitted to amend the plaint instead of being driven to a fresh suit.
Siddalingamma v. Mamtha Shenoy, (2001) 8 SCC 561 The doctrine of relation-back for amendments is not universal; a court may direct that an amendment shall take effect from the date of the application, not the suit. Used to justify protecting the defendant’s limitation defence by directing that the new reliefs shall be deemed filed on the date of the amendment application, not the original suit date.

Court's Reasoning and Analysis

The Court held that the proposed amendment did not alter the basic structure of the suit; it merely changed the nature of the relief. If a fresh suit could legitimately be filed, logically the same reliefs could be incorporated in the pending suit to prevent multiplicity of proceedings.

Drawing on Order 6 Rule 17 CPC, the Court emphasised that:

  • Amendments intended to bring forth the real questions in controversy should generally be allowed.
  • Delay alone is not a ground for refusal; pre-trial amendments are viewed more liberally because the opposite party retains full opportunity to meet the amended case.

Regarding the defendant’s plea of limitation and adverse possession, the Court acknowledged that an amendment ordinarily relates back to the date of suit, but, following Siddalingamma, exercised discretion to deny relation-back for the newly added reliefs. Thus, the prayer for declaration of title and recovery of possession would be treated as made only on the date of the amendment application, preserving any limitation defence available to the defendant.

Because the merits of the rival factual claims (possession, dispossession, adverse possession) could be examined at trial, no prejudice would accrue to the defendant by permitting the amendment, especially as the application preceded the commencement of evidence.

Holding and Implications

APPEAL ALLOWED; AMENDMENT PERMITTED.

The Supreme Court set aside the orders of the trial court and High Court, allowed the plaintiff to amend the plaint to add prayers for declaration of title and possession, and imposed costs of Rs 2,000 on the plaintiff as a condition precedent. The added reliefs will be deemed to have been sought on the date of the amendment application, thereby preserving the defendant’s limitation defence. The ruling reinforces the liberal approach to pre-trial amendments aimed at resolving the real controversy in a single proceeding, without establishing a new legal precedent.

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    Sampath Kumar v. Ayyakannu And Another

    Order

    1. Leave granted.

    2. The plaintiff-appellant filed a suit for issuance of permanent prohibitory injunction alleging the plaintiff-appellant's possession over the suit property which is an agricultural land. The defendant in his written statement denied the plaint averments and pleaded that on the date of the institution of the suit he was in possession of the suit property and therefore the suit for injunction was liable to be dismissed. The suit was instituted in the year 1988.

    3. In the year 1999, but before the commencement of the trial, the plaintiff moved an application under Order 6 Rule 17 CPC seeking an amendment in the plaint. It is alleged in the application that in January 1989, that is, during the pendency of the suit, the defendant had forcibly dispossessed the plaintiff. On such averment the plaintiff sought for relief of declaration of title to the suit property and consequential relief of delivery of possession. The suit was proposed to be valued accordingly along with the payment of court fee. The prayer for amendment was opposed on behalf of the defendant-respondent submitting that the plaintiff was changing the cause of action through amendment which was not permissible and also on the ground that the defendant has perfected his title also by adverse possession over the suit property rendering the suit for recovery of possession barred by time and therefore a valuable right had accrued to the defendant which was sought to be taken away by the proposed amendment.

    4. The trial court rejected the application for amendment. During the course of its order the court observed that the appropriate course for the plaintiff was to bring a new suit. This order has been maintained by the High Court in revision. Although the plaintiff had sought for some more amendment so as to correct the description of the suit property, however, that part of the prayer for amendment was not later pressed by the plaintiff before the Court.

    5. The short question arising for decision is whether it is permissible to convert through amendment a suit merely for permanent prohibitory injunction into a suit for declaration of title and recovery of possession.

    6. It is true that the plaintiff on the averments made in the application for amendment proposes to introduce a cause of action which has arisen to the plaintiff during the pendency of the suit. According to the defendant the averments made in the application for amendment are factually incorrect and the defendant was not in possession of the property since before the institution of the suit itself.

    7. In our opinion, the basic structure of the suit is not altered by the proposed amendment. What is sought to be changed is the nature of relief sought for by the plaintiff. In the opinion of the trial court, it was open to the plaintiff to file a fresh suit and that is one of the reasons which has prevailed with the trial court and with the High Court in refusing the prayer for amendment and also in dismissing the plaintiff's revision. We fail to understand, if it is permissible for the plaintiff to file an independent suit, why the same relief which could be prayed for in a new suit cannot be permitted to be incorporated in the pending suit. In the facts and circumstances of the present case, allowing the amendment would curtail multiplicity of legal proceedings.

    8. In Rukhmabai v. Lala Laxminarayan AIR 1960 SC 335 this Court has taken the view that where a suit was filed without seeking an appropriate relief, it is a well-settled rule of practice not to dismiss the suit automatically but to allow the plaintiff to make necessary amendment if he seeks to do so.

    9. Order 6 Rule 17 CPC confers jurisdiction on the court to allow either party to alter or amend his pleadings at any stage of the proceedings and on such terms as may be just. Such amendments as are directed towards putting forth and seeking determination of the real questions in controversy between the parties shall be permitted to be made. The question of delay in moving an application for amendment should be decided not by calculating the period from the date of institution of the suit alone but by reference to the stage to which the hearing in the suit has proceeded. Pre-trial amendments are allowed more liberally than those which are sought to be made after the commencement of the trial or after conclusion thereof. In the former case generally it can be assumed that the defendant is not prejudiced because he will have full opportunity of meeting the case of the plaintiff as amended. In the latter cases the question of prejudice to the opposite party may arise and that shall have to be answered by reference to the facts and circumstances of each individual case. No straitjacket formula can be laid down. The fact remains that a mere delay cannot be a ground for refusing a prayer for amendment.

    10. An amendment once incorporated relates back to the date of the suit. However, the doctrine of relation-back in the context of amendment of pleadings is not one of universal application and in appropriate cases the court is competent while permitting an amendment to direct that the amendment permitted by it shall not relate back to the date of the suit and to the extent permitted by it shall be deemed to have been brought before the court on the date on which the application seeking the amendment was filed. (See observations in Siddalingamma v. Mamtha Shenoy (2001) 8 SCC 561.)

    11. In the present case the amendment is being sought for almost 11 years after the date of the institution of the suit. The plaintiff is not debarred from instituting a new suit seeking relief of declaration of title and recovery of possession on the same basic facts as are pleaded in the plaint seeking relief of issuance of permanent prohibitory injunction and which is pending. In order to avoid multiplicity of suits it would be a sound exercise of discretion to permit the relief of declaration of title and recovery of possession being sought for in the pending suit. The plaintiff has alleged the cause of action for the reliefs now sought to be added as having arisen to him during the pendency of the suit. The merits of the averments sought to be incorporated by way of amendment are not to be judged at the stage of allowing prayer for amendment. However, the defendant is right in submitting that if he has already perfected his title by way of adverse possession then the right so accrued should not be allowed to be defeated by permitting an amendment and seeking a new relief which would relate back to the date of the suit and thereby depriving the defendant of the advantage accrued to him by lapse of time, by excluding a period of about 11 years in calculating the period of prescriptive title claimed to have been earned by the defendant. The interest of the defendant can be protected by directing that so far as the reliefs of declaration of title and recovery of possession, now sought for, are concerned the prayer in that regard shall be deemed to have been made on the date on which the application for amendment has been filed.

    12. On the averments made in the application, the same ought to have been allowed. If the facts alleged by the plaintiff are not correct it is open for the defendant to take such plea in the written statement and if the plaintiff fails in substantiating the factual averments and/or the defendant succeeds in substantiating the plea which he would obviously be permitted to raise in his pleading by way of consequential amendment then the suit shall be liable to be dismissed. The defendant is not prejudiced, more so when the amendment was sought for before the commencement of the trial.

    13. For the foregoing reasons, the appeal is allowed. The impugned orders of the High Court and the trial court are set aside. The plaintiff is permitted to incorporate the plea sought to be raised by way of amendment in the original plaint foregoing the plea to the extent given up by him before the trial court. However, in view of the delay in making the application for amendment, it is directed that the plaintiff shall pay a cost of Rs 2000 (Rupees two thousand only) as a condition precedent to incorporating the amendment in the plaint. The prayer for declaration of title and recovery of possession shall be deemed to have been made on the date on which the application for amendment was filed.

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    Comments

    Sampath Kumar v. Ayyakannu And Another
    (Sep 13, 2002)