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N.C Bansal v. Uttar Pradesh Financial Corporation And Another
Factual and Procedural Background
The appellant filed Civil Suit No. 252 of 2005 (renumbered as Civil Suit No. 7930 of 2016) in the Court of JSCC-cum-ASCJ-cum-Guardian Judge (West), Delhi, seeking a declaration and permanent injunction concerning property located at 21 NWA Club Road, Punjabi Bagh Extension, New Delhi-110026. The respondents filed a written statement denying the claim and objecting to the suit’s maintainability. The trial court dismissed the suit at the threshold on 20-9-2011.
On appeal (RCA No. 121/14/11), the Additional District Judge set aside the trial court’s decree on 20-11-2014 and remanded the matter for trial. After remand, the appellant submitted three procedural applications: (i) under Order 7 Rule 14 CPC to file additional documents, (ii) under Order 6 Rule 17 CPC to amend the plaint, and (iii) seeking directions to the respondents to produce certain original documents. The trial court dismissed all three applications on 21-9-2016. A writ petition under Article 227 of the Constitution was also dismissed by the Delhi High Court on 19-12-2016 (2016 SCC OnLine Del 6587). The present appeal by special leave challenges those concurrent orders.
Legal Issues Presented
- Whether the trial court and the High Court erred in dismissing the appellant’s application under Order 7 Rule 14 of the Code of Civil Procedure, 1908 (CPC) seeking leave to file additional documents.
- Whether the courts below were justified in rejecting the appellant’s application under Order 6 Rule 17 CPC for amendment of the plaint.
- Whether the dismissal of the appellant’s application seeking a direction to the respondents to produce original documents was correct in law.
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 Supreme Court emphasized four key considerations while allowing the first two applications:
- The suit remained at an initial stage; no evidence had yet been led, making it procedurally appropriate to entertain amendments and additional documents.
- The proposed amendment did not alter the basic nature of the suit and therefore should not be refused.
- The applications could not be deemed belated because the suit had earlier been dismissed on maintainability grounds and was only recently remanded for trial.
- Civil courts should adopt a liberal approach toward procedural amendments when they aid in the complete adjudication of disputes.
Regarding the application for production of original documents by the respondents, the Court noted that the appellant advanced no argument; consequently, the rejection of that application by the lower courts was upheld.
The Court clarified that it expressed no opinion on the merits of the amended pleadings or on the evidentiary value of the documents sought to be introduced; those issues remain for determination by the trial court.
Holding and Implications
Holding: The appeal is allowed. The Supreme Court sets aside the orders dated 21-9-2016 (trial court) and 19-12-2016 (High Court) insofar as they dismissed the applications under Order 7 Rule 14 CPC and Order 6 Rule 17 CPC. Both applications are allowed subject to the appellant paying costs of Rs 10,000 to the respondents within one month. The dismissal of the third application seeking production of documents by the respondents is affirmed.
Implications: The appellant may amend the plaint and file additional documents within one month; respondents may file consequential amendments and rebuttal documents. The trial court must reframe issues and endeavor to dispose of the suit within one year. The decision impacts only the procedural posture of the suit and sets no broader precedent.
Abhay Manohar Sapre, J.— Leave granted. This appeal is filed by the plaintiff against the final judgment and order dated 19-12-2016 passed by the High Court of Delhi at New Delhi in N.C Bansal v. U.P Financial Corpn. 2016 SCC OnLine Del 6587 whereby the High Court dismissed the petition and upheld the order of the trial court dated 21-9-2016 in Civil Suit No. 7930 of 2016.
2. In order to decide the short question, it is not necessary to set out the facts in detail and mentioning of a few facts alone would suffice.
3. The controversy involved in the appeal is whether the two courts below were justified in dismissing the three applications filed by the plaintiff in a pending suit, namely, (i) application under Order 7 Rule 14 of the Code for filing of documents, (ii) application under Order 6 Rule 17 of the Code seeking amendment in the plaint, and (iii) application seeking directions against the respondents for production of some original documents.
4. The appellant is the plaintiff and the respondents are the defendants in the suit out of which this appeal arises.
5. The appellant-plaintiff has filed a civil suit being Civil Suit No. 252 of 2005 now renumbered as (CS No. 7930 of 2016) against the respondent-defendants in the Court of JSCC-cum ASCJ-cum-Guardian Judge (West), Delhi.
6. The appellant's suit is for a declaration and permanent injunction in relation to certain properties (hereinafter referred to as “the suit property”). The appellant has claimed the following reliefs:
“It is, therefore, most respectfully prayed that the Hon'ble Court be pleased to pass the decree of declaration as the said property (at the second floor) bearing No. 21 NWA Club Road, Punjabi Bagh Extn., New Delhi-110 026 is not a collateral security or not a mortgage property under the defendants and also to pass a decree of permanent injunction in favour of the plaintiff and against the defendants thereby restraining the defendants, its agents, servant, attorneys, nominees, etc. etc. from taking forcible possession or selling of the said premises bearing No. 21, NWA Club Road, Punjabi Bagh Extn., New Delhi-110 026 (situated at second floor on Plot No. 21 in NVVA in the layout plan of the Adarsh Shawan Co-op. House Building Society Ltd. Colony known as Punjabi Bagh Extn. In the area of Viii Madipur, Delhi-110 026 as shown in red colour in the site plan and from creating any interference in the use and enjoyment of the said property, in the interest of justice.
Any other relief, which this Hon'ble Court may deem fit and proper be also passed in favour of the plaintiff and against the defendants along with the cost of the suit.”
7. The respondents have filed their written statement and denied the appellant's claim set up in the plaint. The respondents, however, also raised certain legal objections regarding the maintainability of the appellant's suit. The trial court upheld the objections raised by the respondent and accordingly dismissed the appellant's suit vide judgment/decree dated 20-9-2011 in the initial stage itself as not maintainable.
8. The appellant felt aggrieved and filed appeal being RCA No. 121/14/11 before the Additional District Judge, Tis Hazari Court, New Delhi. By order dated 20-11-2014, the first appellate court allowed the appellant's appeal and while setting aside the judgment/decree of the trial court remanded the case to the trial court for deciding the suit on merits.
9. It appears that the respondent-defendants did not take up the matter to the High Court against the order of the first appellate court and, therefore, the case has now gone back to the trial court to proceed with the trial in the suit.
10. After remand, the appellant-plaintiff, as mentioned above, filed three applications in his pending suit. One was under Order 7 Rule 14 of the Code seeking permission to file some additional documents, second was an application under Order 6 Rule 17 seeking amendment in the plaint and the third application was for a direction to the respondents for production of some original documents.
11. The respondent-defendants opposed the applications filed by the appellant. The trial court by order dated 21-9-2016 dismissed the applications filed by the appellant-plaintiff.
12. The appellant felt aggrieved and filed writ petition under Article 227 of the Constitution of India in the High Court of Delhi. By the impugned order 2016 SCC OnLine Del 6587, the Single Judge dismissed the appellant-plaintiff's writ petition and upheld the order of the trial court.
13. Against the said order, the appellant-plaintiff felt aggrieved and filed this appeal by special leave in this Court questioning its legality and correctness.
14. Heard Mr Shantanu Bansal, learned counsel for the appellant and Mr S.K Misra, learned counsel for the respondents.
15. Having heard the learned counsel for the parties and on perusal of the record of the case, we are inclined to allow the appeal and while setting aside the order of the trial court dated 21-9-2016 and also the impugned order of the High Court allow the two applications filed by the plaintiff-appellant herein, namely, application filed under Order 7 Rule 14 and the application filed under Order 6 Rule 17 of the Code.
16. We have perused the pleadings and also the two applications under consideration filed by the appellant. In our considered opinion, both the applications filed by the appellant-plaintiff should have been allowed and he should have been permitted to amend the plaint and file the additional documents.
17. It is for the reason that firstly, the suit is still at the initial stage i.e the trial has not yet begun; second, the proposed amendment sought in the plaint does not change the nature of the suit; third, the applications could not be said to have been filed by the plaintiff belatedly because the suit had been dismissed by the trial court as not maintainable in its initial stages and for all these years it was sub judice in appeal. It is only after the appellate court remanded the case to the trial court for its trial, the appellant-plaintiff filed the applications in the suit and sought permission to amend the plaint and file certain documents in support thereof; fourth, the courts, in these circumstances, should have been liberal in allowing the proposed amendment.
18. So far as the filing of documents is concerned, this application too should have been allowed on the same grounds on which we have allowed the amendment application. In other words, when the suit is still at its initial stage and the trial is yet to begin and when the documents filed are alleged to be that of the respondents themselves having obtained through RTI, there is no reason why the appellant-plaintiff be not allowed to file them.
19. So far as the third application for production of documents by the respondents is concerned, no argument was advanced by the learned counsel for the appellant. We, therefore, uphold the order of its rejection by the two courts below. In other words, our order is confined to consideration of only two applications mentioned above.
20. We, however, make it clear that we have not expressed any opinion either on the merits of the proposed amendment or on the alleged documents sought to be filed by the appellant. It is for the appellant to prove the case set up in the plaint including the amended pleadings so also to prove the documents and its relevance in accordance with law by adducing adequate evidence.
21. In view of the foregoing discussion, the appeal succeeds and is allowed. The impugned order is set aside so also the order dated 21-9-2016 is set aside to the extent indicated above. As a consequence, the two applications filed by the appellant-plaintiff i.e one filed under Order 7 Rule 14 and the other under Order 6 Rule 17 of the Code are allowed, however, subject to the appellant paying costs of Rs 10,000 to the respondents. Let the costs be paid by the appellant to the respondents within one month.
22. Let the amendment be incorporated in the plaint as proposed by the plaintiff in his application for amendment within one month. The respondent is granted an opportunity to amend their written statement and make consequential amendment in reply to the amended plea of the appellant-plaintiff.
23. The appellant-plaintiff is also allowed to file the additional documents, as prayed by him. The respondent-defendant is also granted an opportunity to file additional documents in rebuttal, if they so desire.
24. The trial court will then reframe the issues arising in the case in the light of the original pleadings and the amended pleadings and make an endeavour to decide the suit in accordance with law preferably within one year as an outer limit uninfluenced by any observations made by the High Court in the impugned order and our observations in this order.
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