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Supreme Court of India

T.N. ALLOY FOUNDRY CO. LTD.versusT.N. ELECTRICITY BOARD AND ORS.

Citation
2004 INSC 102
Decided
12 February 2004
Disposal
Dismissed

Holding

The appellate court has co‑extensive power with the trial court, and its discretion to reject the amendment of the plaint was lawful.

Summary

T.N. Alloy Foundry Co. Ltd., a company incorporated under the Indian Companies Act, sued the Tamil Nadu Electricity Board and others for damages arising from non‑supply of electricity between 28 March 1983 and 16 October 1992. The suit was filed in March 1993, and in July 1998 the company sought to amend the plaint to increase its claim for damages. A Single Judge of the Madras High Court allowed the amendment, but the respondents appealed to the Letters Patent Bench, which set aside the amendment order, rejecting the application. The company appealed to the Supreme Court, arguing that the High Court erred in refusing the amendment. The Supreme Court held that an appellate court possesses co‑extensive powers with the trial court and that the High Court’s exercise of discretion in rejecting the amendment was in accordance with law. Consequently, the appeal was dismissed without costs.

Issues considered

  • Whether the Letters Patent Bench of the Madras High Court had the jurisdiction to reject the amendment of the plaint filed by the appellant.
  • Whether the discretion exercised by the High Court in refusing the amendment was exercised in conformity with established law on amendment of plaints and limitation.

Legislation cited

Subjects

amendment of plaintco‑extensive jurisdictionappellate court discretionlimitation perioddamages suitelectricity supplycorporate law

Judgment

A                       T.N. ALLOY FOUNDRY CO. LTD.
                                      v.
                    . T.N. ELECTRICITY BOARD AND ORS.

                               FEBRUARY 12, 2004

B            [V.N. KHARE, CJ., S.B. SINHA AND S.H. KAPADIA, JJ.]


         Pleadings-Amendment of-Suit for damages filed in March, 1993-
  Application for amendment for enhancement of claim of damages filed in July
C 1998-Single Judge of High Court allowing the amendment-letters Patent
  Bench rejecting the application-Held, appellate court has a co-extensive
  power of the trial court-Discretion exercised by letters patent Bench of High
  Court in rejecting the plaint was in conformity with /aw-Suit-Amendment of
  plaints:

D        l.J leach and Co. ltd. and Anr. v. Messrs. Jardine Skinner and Co.,
    AIR (1957) SC 357 = (1957) SCR 438, referred to.

            CIVIL APPELLATE JURISDICTION : Civil Appeal No. 7615 of
    2002.

E        From the Judgment and Order dated 10.7.2001 of the Madras High
    Court in O.S. No.30 of 2000.

            T.L.V. Iyer, Ramesh Babu M.R. for the Appellant.

         A.T.M. Sampath, P.N. Ramalingam, V. Balaji and Ms. Aarthi
p   Radhakrishnan for the Respondent Nos. 1-2.

            Ms. Revathy Raghavan (NP), for Respondent Nos. 3-4.

            The Order of the Court was delivered

G          The appellant herein is incorporated under the Indian Companies Act
    and started its commercial production in the year 1982. It appears that
    subsequently it became sick. It is alleged that the appellant-Company could
    not run because of non-supply of electrical energy by the respondents herein.
    It is under such circumstances, the appellant herein filed a suit for damages
    against respondents for the damage suffered during the period commencing
H                                       352
       T.N. ALLOY FOUNDRY CO. LTD. v. T.N. ELECTRICITY BOARD               353

from 28th March, 1983 to 16th October, 1992. The said suit was filed sometime      A
in March, 1993 on the Original Side of the Madras High Court. In July, 1998,
the appellant herein filed an interlocutory application for amendment of the
plaint. By the said application for amendment, the appellant sought to enhance
its claim for damages. The learned Single Judge of the High Court allowed
the amendment, as prayed for. The respondents herein went in appeal before         B
the Letters Patent Bench before the High Court and the Bench set aside the
order of the learned Single Judge and allowed the appeal. It is against the
said order and judgment, the appellant is in appeal before us.

       Shri T.L.V. Iyer, learned senior counsel, appearing for the appelJant,
urged that the view taken by the High Court in rejecting the amendment of          C
the appell~nt was erroneous. The law as regards permitting amendment to the
plaint, is well settled. In L.J Leach and Co. Ltd. and Anr: v. Messrs. Jardine
Skinner and Co., AIR (1957) SC 357 == [1957] SCR 438, it was held that the
Court as a rule decline to allow amendments, if a fresh suit on the amended
claim would be barred by limitation on the date of the application. But that
is a factor to be taken into account in exercise of the discretion as to whether   D
amendment should be ordered and does not affect the power of the Court to
order it.

       It is not disputed that the appellate court has a co-extensive power of
the trial court. We find that the discretion exercise by the High Court in
rejecting the plaint was in conformity with law.                                   E

      For the aforesaid reason, we do not find any merit in the appeal. It fails
and is, accordingly, dismissed. There shall be no order as to costs.

R.P.                                                        Appeal dismissed


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