2007 (7) TMI 402 - SC - Indian Laws

Whether an application of the appellant in a suit for tendering in evidence an affidavit in chief of the plaintiff containing statements which are relevant and germane to the issues involved in the suit can be rejected only on the ground that the affidavit does not contain any admission? Held that - Appeal allowed. The Special Court has acted illegally and with material irregularity in the exercise of its jurisdiction in passing the impugned order. In the facts and circumstances of the present case such a prayer of the appellant to tender in evidence of certain paragraph and affidavit in examination in chief of the appellant containing statements are relevant and germane to the issues involved in the suit and therefore cannot be rejected only on the ground that the same did not contain any admission.

Summary

Issues:
1. Rejection of application for amendment of the written statement in Suit No. 3 of 1998.
2. Rejection of chamber summons seeking permission to tender in evidence an affidavit in Suit No. 3 of 1998.

Analysis:

Issue 1: Rejection of Application for Amendment of the Written Statement
The appeal challenged the order rejecting the application for amending the written statement in Suit No. 3 of 1998. The respondent ABN Amro Bank alleged non-delivery of NPC bonds by the appellant and sought recovery of Rs. 15,66,66,591. The appellant filed an application to amend the written statement, introducing a new defense under section 230 of the Indian Contract Act. The Special Court rejected the amendment primarily citing delay and questioning the merit of the amendment. The Supreme Court held that delay alone cannot justify refusal of an amendment application. The Court emphasized that the focus should be on whether the amendment is necessary to decide the real controversy between the parties. The appellant's additional defense was deemed permissible, and the Court directed the appellant to file the amended written statement promptly for the suit's continuation.

Issue 2: Rejection of Chamber Summons for Affidavit in Suit No. 3 of 1998
The second appeal concerned the rejection of a chamber summons seeking to tender an affidavit in evidence in Suit No. 3 of 1998. The affidavit contained relevant statements regarding the issues in the suit. The Special Court rejected the chamber summons on the basis that the affidavit lacked admissions. However, the Supreme Court found this reasoning flawed and held that the relevance of the statements in the affidavit to the suit's issues was crucial. The Court overturned the Special Court's decision, emphasizing that the affidavit's content was significant for the case. The Court directed the Special Court to proceed with the suit's hearing from the scheduled date and clarified that the suit's merits and any amendments in the written statement would be addressed during the suit's disposal.

In both appeals, the Supreme Court focused on the necessity and relevance of the proposed amendments and evidence in the ongoing suit, emphasizing the importance of allowing parties to present their defenses and evidence effectively. The Court's decisions highlighted the procedural aspects of amendment applications and the admissibility of evidence crucial to the suit's resolution.