Amendment Of Plaint Cannot Be Permitted If It Is Likely To Change Nature Of The Suit: Supreme Court

The Supreme Court observed that, a Court would not be justified in allowing the amendment of plaint if the nature of the suit is likely to be changed.

The bench comprising Justices MR Shah and BV Nagarathna also observed that the Plaintiffs cannot be permitted to join any party as a defendant who may not be necessary and / or proper parties at all on the ground that the plaintiffs is the dominus litus.

In this case, the High Court of Delhi in Commercial Suits under Order 1 Rule 10 and Order 6 Rule 17 of the Code of Civil Procedure, permitted the original plaintiff to amend the respective suits and also ordered impleadment of mortgagees (Banks). The plaintiffs in the suit had sought a decree of declaration that the license in favour of the plaintiff in respect of shop/ premises is irrevocable and perpetual and the purported revocation of the License by the defendant is illegal, void and bad in the eyes of law. A decree was also sought for a declaration declaring that the plaintiff has unfettered right to occupy and use the said premises / shop under the irrevocable license till the documents of transfer / conveyance are executed by the defendant. The plaintiff proposed to amend the suit challenging various mortgages created by the defendant hotel, in favour of certain banks.

Assailing these orders, the appellant contended that the impleadment and amendment applications are mala fide filed only to circumvent adjudication pending Section 8 of the Arbitration and Conciliation Act. On the other hand, respondents contended that at the stage of allowing the amendment the Court should not be concerned with the merits and demerits of such amendments.

The Apex Court bench noted that the High Court while allowing the amendment application in exercise of powers under Order 6 Rule 17 of the Code of Civil Procedure has not properly appreciated the fact and / or considered the fact that as such, by granting such an amendment and permitting plaintiffs to amend the plaints incorporating the prayer clause to declare the respective charges / mortgages void ab­initio, the nature of the suits will be changed.

"As per the settled proposition of law, if, by permitting plaintiffs to amend the plaint including a prayer clause nature of the suit is likely to be changed, in that case, the Court would not be justified in allowing the amendment. It would also result in misjoinder of causes of action...
..The principle that the plaintiffs is the dominus litus shall be applicable only in a case where parties sought to be added as defendants are necessary and / or proper parties. Plaintiffs cannot be permitted to join any party as a defendant who may not be necessary and / or proper parties at all on the ground that the plaintiffs is the dominus litus"

The court therefore held that in a suit challenging revocation of the respective licenses, the plaintiffs cannot be permitted to challenge the respective mortgages / charges created on the entire premises as void ab­initio.

Case details

Asian Hotels (North) Ltd. vs Alok Kumar Lodha | 2022 LiveLaw (SC) 585 | CA 3703-­3750 OF 2022 | 12 July 2022

Coram: Justices MR Shah and BV Nagarathna

Counsel : Sr. Adv Mukul Rohatgi for the appellant­,  Adv Avishkar Singhvi and Adv Rahul Gupta for respondents

Headnote

Code of Civil Procedure, 1908 ; Order VI Rule 17 -  If, by permitting plaintiffs to amend the plaint including a prayer clause nature of the suit is likely to be changed, in that case, the Court would not be justified in allowing the amendment. It would also result in misjoinder of causes of action. (Para 8)

Code of Civil Procedure, 1908 ;  Order I Rule 10 - The principle that the plaintiffs is the dominus litus shall be applicable only in a case where parties sought to be added as defendants are necessary and / or proper parties. Plaintiffs cannot be permitted to join any party as a defendant who may not be necessary and / or proper parties at all on the ground that the plaintiffs is the dominus litus. (Para 9)

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