Revajeetu Builders and Developers Vs Narayanaswamy and Sons

The appellant Revajeetu Builders and Developers filed a suit against the respondents for recovery of money with 18% interest and declaration of absolute ownership of property based on a sale deed dated 30-9-1987, claiming the respondents were unlawfully occupying the building after termination of tenancy. The appellant later sought amendment under Order 6 Rule 17 CPC to insert new paragraphs and add prayers declaring respondents as trespassers from 1-4-1988, seeking mandatory injunction for demolition of unauthorized constructions, permanent injunction against interference, and damages for unauthorized occupation. The trial court allowed the amendment, but the High Court set aside the order, finding it unnecessary, prejudicial, and changing the suit's nature. The Supreme Court, on appeal, upheld the High Court's view, reasoning that courts must exercise discretion judiciously in amendments, refusing mala fide ones while allowing bona fide amendments essential for adjudicating real controversies, considering factors like prejudice compensable by costs, limitation bar, and whether it fundamentally alters the case; here, the amendment was not imperative, caused uncompensable prejudice, was barred by limitation, and altered the suit from money recovery to eviction and damages, dismissing the appeal with Rs 1 lakh costs to discourage such applications.

Law Points:

Courts must exercise wide discretion under Order 6 Rule 17 CPC judiciously, refusing mala fide, worthless or dishonest amendments but not bona fide, legitimate, honest and necessary ones (Reference: Paras 59 and 64 of judgment).

The basic test for granting amendment is whether it is necessary for determining the real question in controversy or for proper/effective adjudication; if not, it cannot be allowed (Reference: Para 58 of judgment).

Courts should consider potential prejudice or injustice to the other side, which if compensable by costs, may not bar amendment, but actual costs are rarely granted in practice (Reference: Para 59 of judgment).

Key principles for allowing/rejecting amendment include: imperative for adjudication, bona fide application, no uncompensable prejudice, avoids injustice/multiple litigation, does not fundamentally change case nature, and limitation bar as a factor though not absolute if justice requires (Reference: Para 63 of judgment).

Bar of limitation on amended claim is a relevant factor in discretion but does not oust jurisdiction if amendment serves interests of justice (Reference: Para 39 of judgment).

Imposition of costs on amendment applications aims to discourage mala fides, compensate delay/inconvenience/expenses, and signal careful pleading; factors include stage of application, pre/post-trial, financial benefit, realistic assessment, extra hearings, and appeal costs (Reference: Paras 61 and 62 of judgment).

Case Title: Revajeetu Builders and Developers Vs Narayanaswamy and Sons and Others

Order Date: October 9, 2009

Case Number: Civil Appeal No. 6921 of 2009

Neutral Citation: 2009 SCC OnLine SC 1709

Name of Court: Supreme Court of India

Name of Judge: Dalveer Bhandari and H.S. Bedi, JJ.

[Readers are advised not to treat this as substitute for legal advise as it may contain errors in perception, interpretation, and presentation]

[Written By: Advocate Ajay Amitabh Suman, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi]