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  • It is settled law that while considering whether the amendment is to be granted or not, the court does not go into the merits of the matter and decide whether or not the claim made therein is bona fide or not. That is a question which can only be decided at the trial of the suit.
  • It is settled law that merely because an amendment may take the suit out of the jurisdiction of that court is no ground for refusing that amendment.
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  • It is settled law that while considering whether the amendment is to be granted or not, the court does not go into the merits of the matter and decide whether or not the claim made therein is bona fide or not. That is a question which can only be decided at the trial of the suit.
  • It is settled law that merely because an amendment may take the suit out of the jurisdiction of that court is no ground for refusing that amendment.
Smart Summary

Factual and Procedural Background

The appellant filed a civil suit asserting proprietorship over the trade marks “Kundan” and “Kundan CAB” for PVC wires and cables. Reliefs sought included a permanent injunction to restrain the respondent from using the marks, rendition of accounts, and ancillary remedies. During the suit, the appellant moved an application to amend the plaint, inter alia raising the suit valuation from Rs 1,00,000 to Rs 10,00,000. The trial court allowed the entire amendment. On revision, the High Court disallowed the specific portion that enhanced the valuation, terming the increase arbitrary, unsupported by material, and aimed solely at ousting that court’s jurisdiction. The present appeal challenges that part of the High Court’s order.

Legal Issues Presented

  1. Whether a court, when considering an application to amend pleadings, may refuse the amendment on the ground that the revised valuation appears arbitrary or lacks supporting material.
  2. Whether the possibility that an amendment will shift territorial or pecuniary jurisdiction constitutes a valid reason to deny such amendment.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Court reiterated two settled principles:

  • At the amendment stage, the court must not evaluate the substantive merits or bona fides of the amended claim; such issues are to be tested during trial.
  • An amendment cannot be refused merely because it may remove the suit from the present court’s jurisdiction.

Applying these principles, the Court found the High Court erred in scrutinising the bona fides of the enhanced valuation and in treating the potential loss of jurisdiction as a bar. Consequently, the Court reinstated the trial court’s order allowing the full amendment. However, it directed the trial court to examine whether the appellant has paid the correct court fees on the increased claim.

Holding and Implications

The appeal is allowed; the High Court’s order is set aside and the trial court’s order permitting the full amendment is restored.

Immediate Effect: The plaint stands amended to reflect a valuation of Rs 10,00,000, subject to verification of proper court-fee payment by the trial court. No costs were awarded.

Broader Implication: The decision reinforces the principle that amendments should not be rejected on jurisdictional grounds or on speculative assessments of bona fides at the pleading stage; however, it sets no new precedent beyond restating existing doctrine.

    Lakha Ram Sharma v. Balar Marketing Private Limited .

    Order

    1. Leave granted.

    2. Heard parties.

    3. A very short question is involved in this appeal. The appellant had filed a suit claiming that he is the proprietor of a trade mark “Kundan” and “Kundan CAB” in respect of PVC wires and cables and that the respondent was using the appellant's trade mark. Permanent injunction, rendition of accounts and other reliefs were claimed. The appellant applied for an amendment of the suit. The application for amendment was granted by the trial court. The High Court, however, by the impugned order, has disallowed only one portion of the amendment, namely, where the appellant sought to raise the valuation of the suit from Rs 1,00,000 (Rupees one lakh) to Rs 10,00,000 (Rupees ten lakhs). The High Court has held that such a claim is arbitrary and not based on any cogent material. The High Court has held that the application to raise valuation is not bona fide as it is done with the purpose of taking the suit out of the jurisdiction of that court.

    4. It is settled law that while considering whether the amendment is to be granted or not, the court does not go into the merits of the matter and decide whether or not the claim made therein is bona fide or not. That is a question which can only be decided at the trial of the suit.. It is also settled law that merely because an amendment may take the suit out of the jurisdiction of that court is no ground for refusing that amendment. We, therefore, do not find any justifiable reason on which the High Court has refused this amendment. Accordingly, the impugned order is set aside and that of the trial court is restored. We, however, clarify that as the appellant has now raised the claim from Rs 1 lakh to Rs 10 lakhs, the trial court will determine, whether or not court fees are correctly paid.

    5. The appeal stands disposed of accordingly. No order as to costs.

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    Comments

    Lakha Ram Sharma v. Balar Marketing Private Limited .
    (Aug 1, 2003)