High Court Punjab-Haryana High Court

M/S Glass Palace vs Indusind Bank Limited And Another on 2 December, 2009

Punjab-Haryana High Court
M/S Glass Palace vs Indusind Bank Limited And Another on 2 December, 2009
Civil Revision No. 4574 of 2009                                -1-




IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH




                          Civil Revision No. 4574 of 2009
                          Date of decision : December 02, 2009


M/s Glass Palace
                                              ....Petitioner
                          versus


IndusInd Bank Limited and another
                                              ....Respondents


Coram:        Hon'ble Mr. Justice L.N. Mittal


Present :     Mr. Arvind Mittal, Advocate, for the petitioner

              Mr. Jagdish Marwaha, Advocate for the respondents



L.N. Mittal, J. (Oral)

Plaintiff M/s Glass Palace has filed the instant revision petition

under Article 227 of the Constitution of India assailing order dated

31.3.2008, Annexure P/1, passed by learned Civil Judge (Junior Division),

Chandigarh.

The petitioner filed suit against the respondents. During

pendency of the suit, the petitioner moved application under Order 23 Rule

1(3) of the Code of Civil Procedure (in short, CPC) for permission to

withdraw the suit with liberty to file fresh one on the same cause of action

on account of alleged formal defect in the suit. It was alleged that the
Civil Revision No. 4574 of 2009 -2-

defendants had raised preliminary objection in the written statement and in

view thereof, the plaintiff be permitted to withdraw the suit with liberty to

file fresh one on the same cause of action.

The aforesaid application was resisted by the respondent-

defendants. The learned trial court vide impugned order dated 31.3.2008,

Annexure P/1, declined the permission to the plaintiff to file fresh suit on

the same cause of action but dismissed the pending suit as withdrawn.

Feeling aggrieved, the petitioner has filed the instant revision petition.

I have heard learned counsel for the parties and perused the

case file.

Learned counsel for the petitioner relying on two judgments of

this Court namely Lal Singh versus Ajit Singh and another, 2008(3) RCR

(Civil) 650 and Surjan Singh versus Amarjit Singh, 1993(2) Recent

Revenue Reports, 533, contended that the application moved by the

petitioner could be allowed as a whole and could not be split into two

parts and since the trial court has dismissed the suit as withdrawn, the same

should be treated as liberty to file fresh suit as well. The contention cannot

be accepted because the trial court has specifically declined the said prayer.

However, it is correct that the application filed by the petitioner could not

have been split. The application could either have been allowed in toto by

permitting the plaintiff to withdraw the suit with liberty to file fresh one or

application could have been refused altogether. The course adopted by the

trial court dismissing the suit without granting liberty to file fresh one is

patently illegal and unsustainable.

In view of the aforesaid, it has to be determined as to whether

the petitioner has made out a sufficient ground for permitting it to withdraw
Civil Revision No. 4574 of 2009 -3-

the suit with liberty to file fresh one. Answer to this question has to be in

the negative. The suit was filed on 6.3.2002. Defendants filed written

statement on 28.11.2002 when the alleged defect in the suit came to the

notice of the petitioner. The said defect, as pleaded in the preliminary

objection by the defendants, is that plaintiff-firm being un-registered one

could not file the suit. Issues were framed in the suit on 28.11.2002 itself.

The petitioner moved application in question on 20.8.2007 for withdrawing

the suit with liberty to file fresh suit. Thus, the said application was moved

about five years after the alleged defect in the suit had come to the notice of

the petitioner. In between the plaintiff had also filed application for

amendment of the plaint. There is no explanation why the petitioner

waited for almost five years to file the application in question on the ground

of alleged formal defect in the suit after the said defect had come to the

notice of the petitioner. This Court in the case of Baru Ram versus

Baldeva, 1994(1) Recent Revenue Reports, 702, held that where the defect

had been pointed out and the plaintiff still decides to fight the suit, the

plaintiff cannot be given benefit of Order 23 Rules 1 and 2 CPC. In view

of judgment of this Court in the aforesaid case, the petitioner cannot be

granted permission to withdraw the suit with liberty to file fresh one.

In addition to the aforesaid, even on merits, the petitioner has

not made out a case for withdrawal of the suit with liberty to file fresh one.

This Court in the case of Bansi Lal Clarance versus The United Church

of Northern India Trust Association, 1995(1) Civil Court Cases 191, held

that for permitting the plaintiff to withdraw the suit with liberty to file fresh

one on the same cause of action, it is imperative upon the court to come to a

positive finding that the suit suffers from such formal defects which would
Civil Revision No. 4574 of 2009 -4-

prove fatal. The object of the rule i.e. Order 23 Rule 1(3) CPC is not to

enable the plaintiff, after he has failed to conduct his suit with proper care

and due diligence to obtain an opportunity of commencing the trial fresh.

Similarly, Kerala High Court in the case of Susheela versus

Kuttikrishnan, 1998(3) Civil Court Cases 541, held that where a fatal

defect has erupted in the institution of the suit, no liberty can be granted to

file a fresh suit. On the basis of this legal position, learned counsel for the

respondents contended that in the instant case, the plaintiff firm being un-

registered, there was fatal defect and not only formal defect in the suit and

therefore, liberty to file fresh suit on the same cause of action cannot be

granted to the plaintiff. In support of this contention, learned counsel for

the respondents has relied on a judgment of Gauhati High Court in the case

of Karni Kumar Khatri versus M/s Assam Motor Finance Co., 1989

Civil Court Cases 285, wherein it was held that non registration of a

partnership firm is not a formal defect and therefore, permission for

withdrawal of suit with liberty to file fresh suit on the same cause of action

cannot be granted under Order 23 Rule 1(3) CPC. No judgment to the

contrary has been cited by learned counsel for the petitioner.

In view of the aforesaid, it becomes manifest that the petitioner-

plaintiff has not made out a sufficient ground to permit it to withdraw the

suit with liberty to file fresh one on the same cause of action.

In view of the aforesaid discussion, impugned order dated

31.3.2008, Annexure P/1 passed by learned Civil Judge (Junior Division) is

set aside and the application moved by petitioner-plaintiff under Order 23

Rule 1(3) CPC is dismissed. The suit stands restored to the files of the trial

court for proceeding with the suit for decision, in accordance with law.
Civil Revision No. 4574 of 2009 -5-

Parties are directed to appear before the trial court on

12.1.2010.

The instant civil revision stands disposed of accordingly.




                                                      ( L.N. Mittal )
December 02, 2009                                          Judge
  'dalbir'