Hon'ble Supreme Court Allows Amendment in Suit for Specific Performance: Key Legal Principles Explained

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1. Introduction


The case pertains to a dispute over a suit for specific performance of a contract and an amendment application seeking to enhance the amount of damages claimed. The Supreme Court of India adjudicated on whether the amendment should be allowed and the implications of legal principles such as Order II Rule 2 and Order VI Rule 17 of the Code of Civil Procedure, 1908 (CPC), and the applicability of Specific Relief Act, 1963.

2. Factual Background

  • The dispute originated from an agreement dated 08.06.1979, where the plaintiffs sought specific performance.
  • The suit was filed in 1986 before the Bombay High Court.
  • In 2017, the plaintiffs moved an application (Chamber Summons No. 854 of 2017) to amend the plaint, seeking enhancement of damages.
  • The amendment was allowed by a Single Judge of the Bombay High Court and later upheld by a Division Bench.
  • The Life Insurance Corporation of India (LIC), the defendant, challenged the order before the Supreme Court.

3. Issues Considered by the Supreme Court

  1. Whether the amendment application was barred by Order II Rule 2 of CPC.
  2. Whether the amendment was hit by the doctrine of constructive res judicata.
  3. Whether the amendment for increasing damages was permissible after a long delay.
  4. The impact of Specific Relief (Amendment) Act, 2018 on the case.

4. Relevant Legal Provisions Discussed

(a) Code of Civil Procedure, 1908

  • Order II Rule 2: The bar on splitting claims in subsequent suits does not apply to amendments in an existing suit​.
  • Order VI Rule 17: Amendments should be allowed if necessary for determining the real issue, provided:
    • It does not cause injustice to the opposite party.
    • It does not introduce a time-barred claim.
    • It does not change the nature of the suit​.
  • Section 11 (Res Judicata): The principle of constructive res judicata does not apply in cases where there was no formal adjudication​.

(b) Specific Relief Act, 1963

  • Section 21 & 22: A plaintiff who did not initially claim compensation but later seeks to amend the reliefs can do so with court permission​.
  • Section 21(5): Compensation cannot be awarded unless specifically pleaded in the plaint​.
  • Impact of 2018 Amendment: Damages can now only be awarded in addition to specific performance, not as an alternative​.

5. Supreme Court’s Analysis & Decision

  • The Court emphasized a liberal approach in allowing amendments, particularly when:

    • The amendment is necessary to avoid multiplicity of proceedings.
    • The amendment does not introduce a new cause of action.
    • The opposite party can be compensated with costs if needed​.

  • The Court ruled that delay alone is not a ground to deny amendment. The issue of limitation can be decided at trial​.

  • The Court concluded that the judgment of a coordinate bench in an earlier LIC case (2017) had no bearing on the present case​.

  • Final Verdict: The appeal by LIC was dismissed, and the amendment allowed.

6. Key Takeaways

  • Order II Rule 2 does not bar amendments; it only applies to subsequent suits​.
  • All amendments necessary for effective adjudication should be allowed, provided they do not prejudice the opposite party​.
  • Compensation must be specifically claimed in the plaint, as per Section 21(5) of the Specific Relief Act​.
  • 2018 Amendment restricts damages to being in addition to specific performance, not an alternative​.

This judgment reinforces a pro-amendment approach to ensure that litigation is not unnecessarily prolonged and that plaintiffs get the opportunity to fully claim their rightful reliefs within the original suit.


🔍 #SupremeCourtIndia #CPC #SpecificReliefAct #LegalUpdate #Judgment

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