Facts
Appellant-Plaintiff, filed a suit through Shri Jai Prakash, a partner of the firm, for the recovery of some amount due on the respondent-defendant, based on a promissory note. The suit was filed just before the expiry of the period of limitation for the claim of payment The respondent-defendant in a written statement denied the assertions made in the plaint and also contended that the suit was incompetent as the plaintiff-appellant was not a registered firm. Thereafter the plaintiff filed an application, under Rule 17, Order VI of the Civil Code, for a grant of leave to amend the plaint that was rejected by the Trial Court, on the ground that it would introduce a new cause of action. The plaintiff wanted to mention in the plaint that the plaintiff's firm was actually dissolved prior to the institution of the suit. He asserted that it is a material fact that will enable the Court to determine the true question. A revision petition before the HC was placed by the plaintiff which also had been refused on the ground that a new claim is being sought on the basis of new facts. Against the order of HC, this appeal arose in the SC.
Issues
- Whether the plaintiff was entitled to leave to amend the plaint.
- Whether the view taken by the HC was right
Ratio Decidendi
- Jai Jai Ram Manohar Lal v. National Bldg. Material Supply, AIR 1969 SC 1267:- The HC had failed to follow the principle, "However negligent or careless may have been the first omission, and, however late the proposed amendment, the amendment may be allowed if it can be made without injustice to the other side."
- A different or additional approach to the same facts could be allowed after the expiry of the statutory period of limitation.
- No question of limitation arose in cases where it seeks to bring mere a clarification of what was already there
- Purushottam Umedbhai and Co. v. Manilal & sons:- S. 4 of the Indian Partnership Act uses the term "firm" or "firm name" as "a brief description of all the partners collectively".
- The suit was instituted by a partner and by merely specifying his capacity it could not change the character of the suit or the case as it was making no difference to the rest of the pleadings or cause of action.
- The object of the rules of procedure is to decide the rights of the parties and not to punish them for their mistakes
Decisions
- Allowed appeal.
- Set aside the orders of HC
- The plaintiff was entitled to grant leave to amend under Order VI, Rule17
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