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LAXMIDAS DAHYABHAI KABARWALA versus NANABHAI CHUNILAL KABARWALA AND ORS.

Citation: [1964] 2 S.C.R. 567 · Decided: 27-03-1963 · Supreme Court of India · Bench: S.K. DAS · Disposal: Dismissed

Cited by 4 judgment(s) · see the full citation network in Lexace

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Judgment (excerpt)

2 S.C.R. 
SUPREME COURT REPORTS 
567 
as to burden of proof governs the additional 
assessment. 
In our opinion, this appeal has no substance; it 
fails and is dismissed with costs. 
Appeal dismissed. 
LAXMIDAS DAHYABHAI KABARWALA 
v. 
NANABHAI CHUNILAL KABARWALA 
AND ORS. 
(S. K. DA.s, A. K. SARKAR and N. RAJAGoPALA 
AYYANGAR JJ.) 
Civil Procedure-Amendment of Pleading•-Buit for decree 
on aettled accaunts-Oounter·claim made in written statement-
Court-fee paid a. on plaint-Court if can treat counter-claim 
a. plaint in cro8'-8uit-Amendment when to be 
refused or 
alwwed-P/,ainl in cross-suit when shouUJ, be treated "" having 
been filed-Liability of aurviving partner-Goodwill of a flrm-
Exerciae of discretion by trial court, when can be interfered with-
Conatitution of India Art. 136-Partnership Act. 1932 (9 of 1932) 
s. 37-0od< of Civil Procedure, 1908 (Act Ii of 1908) 0. 6, r. 17, 
0. 8, r. 6 
The appellant filed a suit for the enforcement of an 
agreement to the efl'ect that a partnership between himself 
and one Bai Itcha since deceased had been dissolved and 
that the partners had arrived at a specific amount to be 
paid by the appellant in full satisfaction of the share 
of Bai Itcha in 
the partnership. The respondents who 
were the heirs of Bai ltcha, not only denied the allegations 
in the plaint but also made a counter-claim in the written 
1tatement for the rendition of account against the appellent 
and paid court fee on the counter-claim as on a plaint. At a 
later stage, the respondents made a prayer to treat the counter-
claim a• a plaint in a cross-suit. The trial court dismissed 
tho 1uit oa the 11rc•uad that appellant had failed to prove the 
19~3 
Srilekha Bandfjee 
v. 
Commission1r of 
Income-Tax, 
Bihar & Orissa 
Hidayatullah J, 
1963 
Mar<h 27 
1963 
c.-n;das Dahyabhai 
Kaba1wala 
•• 
Nanabhai ChunUol 
Kabanoo/o 
568 
SUPREME COURT REPORTS [1964] VOL. 
agreement. 'fhc counter-claim \vas 
also dismissed on the 
ground that it did not lie and the prayer of the respondents 
to treat the counter-claim as a plaint in a cross-suit was 
also rejected, the respondents being asked to seek their relief 
by filing a fresh suit. The respondents appealed against 
the order of the trial court but their appeal was dismissed. 
However, the High Court accepted their appeal and set aside 
the dismissal vf the counter-claim and remanded the case 
to the trial court \Vith a direction that the countcr-clai1n be 
treated as a plaint in the cross-;uit and the reply of the 
plaintiff to tbe counter-claim be treated as a \Vrittcn statement 
to the cross-suit and 
tl1e cross-suit be tried and disposed 
of in accordance with law. 
The appellant came t" this Court 
by special leave. 
Held (per Das and Ayyangar JJ.) that the order of the 
High Court was correct and there was no ground for 
interference with the same under Art. 136 of the C'.<.mstitution. 
1here was no miscarriage of Ju~tice. It \vas pi:>intrd out 
that if what i• rc;,lly a plaint in a cross-suit is made a part 
of a written statement either by being made an annexure to 
it or as part and parcel thereof, though described as a counter-
claim, there could be no legal ohjection to the court treating 
the same as a plaint and granting such relief to the defendant 
as would have been open if the pleading had taken the form 
of a plaint. However, the 
appellant was allowed to li'e 
a fresh written statement. The respondcn'.S were also allowed 
to file a fresh plaint in place of their counter-claim provided 
there was no substantial variation in the allegation to be 
made or the relief to be claimed by them. 
Held also, that the curcial date for the purpose of 
determining when the plaint in a cross-suit should be treated 
as having been filed was not the date on which the conversion 
was ordered but the date on which the written statement 
containing the counter-claim was filed. 
Held 
also, that save in exceptional cases, 
leave to 
amend under Or. 6, R. I 7 of the Code of Civil Procedure will 
ordinarily be refused when the effect of the amendment 
would be to take away from a party a legal right which had 
accrued to him by lapse of time. This rule can apply only 
when fresh allegations arc added or fresh reliefs arc sought 
by way of amendment. 
However, where an amcndrr.cnt iJ 
sought which merely clarifies an existing pleading and docs 
not in substance add to or alter it, it had never been held 
that the qucatioo of a bar of limitation ii one of the queat

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