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Supreme Court of India

M/S. C.S. COMPANY AND ORS.versusKERALA STATE ELECTRICITY BOARD

Citation
1996 INSC 1246
Decided
29 October 1996
Disposal
Dismissed

Holding

Amendment of the plaint to quantify damages does not alter or add a new cause of action and is permissible even after the limitation period.

Summary

The petitioners filed a suit for settlement of accounts and a declaration that they were entitled to recover damages under a contract dated May 12, 1983. They later applied, under Order VI Rule 17 of the CPC, to amend the plaint to convert the suit into a damages suit by quantifying the claimed amount. The trial court dismissed the amendment, but the Kerala High Court allowed it. The Supreme Court examined whether the amendment introduced a new cause of action or altered the original cause after the limitation period had expired. It held that the original suit already sought a declaration of liability for damages, and the amendment merely quantified that liability without changing the cause of action, so the High Court was correct. Consequently, the Special Leave Petition was dismissed.

Issues considered

  • Whether amendment of a plaint under Order VI Rule 17 CPC that converts a suit for settlement of accounts into a suit for quantified damages amounts to a change or addition of cause of action after the limitation period.
  • Whether the High Court erred in allowing the amendment despite the alleged bar of limitation.

Legislation cited

Subjects

amendment of plaintcause of actionlimitation periodOrder VI Rule 17civil proceduredamagessettlement of accounts

Judgment

A                    MIS. C.S. COMPANY AND ORS.
                                  v.
                  KERALA STATE ELECTRICITY BOARD

                              OCTOBER 29, 1996

B              [K. RAMASWAMY AND G.B. PATTANAIK, JJ.]

         Code of Civil Procedure, 1908 :

          Order VI Rule 17 CFC-Suit for settlement of accounts-Amendment
    of plaint for converting the suit into one for damages quantifying the
C   amount-Trial Court dismissing the application-In Revision, High Court
    allowing it-On appeal held, there is neither change ofcause ofaction nor
    introduction of any new cause of action after the bar of limitation-Hence
    the High Court was right in allowing the petition for amendment ofplaint.

D        CIVIL APPELLATE JURISDICTION : Special Leave Petition (C)
    No. 20703 of 1996.

         From the Judgment and Order dated 2.8.96 of the Kerala High Court
    in C.R.P. No. 476 of 1996                                 .

E        C.N. Sree Kumar, S.V. Rajan and Shaju Francis for the Petitoners.

         The following Order of the Court was delivered :

         This special leave petition arises from the order of the learned single
F   Judge made on August 2, 1996 in CRP No. 4 76/96.

          The admitted position is that the respondent had filed the suit for
    settlement to accounts on the basis of a contract dated May 12, 1983. He
    also sought for decree jointly and severally against the defendants 2 to 4
    or against their estate for the amount due; for a declaration that the
G   respondent is entitled to recover all the loss and damages from defendants
    and their assests when the same was ascertained, as stated in paragraph 8
    of the plaint. An application has been filed on February 15, 1995 under
    Order VI, Rule 17, CPC for amendment of the plaint for converting the
    suit into one for damages quantifying the damages as stated in para 8A.
    The trial Court dismissed the application. In the revision, the High Court
H   allowed it. Thus, this special leave petition.
                                         136
                 C.S. CO. v. KERALA STA TE ELEC. BD.                   137


       It is contended for the petitioner that a suit merely for settlement of A
accounts and declaration that the respondent is entitled to recover damages
from the defendant cannot be converted into a suit for damages in particular
after the right of recovery is barred by limitation, i.e., a valuable right had
accrued to the petitioners. The High Court, therefore, is not right in granting
the amendment. We find no force in the contention. It is seen that what is
sought to be amended is paragraph SA and the suit is to recover the B
quantified amount as damages based upon the original cause of action,
namely, the contract referred to hereinbefore. It is seen that the original
suit was for settlement of accounts and fastening a liability jointly and
severally against all the defendants and the assets and estates. The relief
originally sought for also was to declare the liability of the damages to be
ascertained and recoverable from them. Thus, it could be seen that as per C
the original cause of action, the relief now sought for was available in the
suit itself. Instead of settlement of account, the defendants is now seeking
for damages against the defendants and the damages instead of being
ascertained were quantified in paragraph SA of the plaint. The amendment
does not constitute addition of any new cause of action. The respondent is
not introducing any new cause of action nor it would change the cause of D
action as originally pleaded. Thus, there is neither change of cause of
action nor introduction of any new cause of action after the baroflimitation.
The High Court was, therefore, right in allowing the petition for amendment
of the plaint.

       The Special Leave Petition is accordingly dismissed.                  E

G.N.                                                   Petition dismissed.


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