VidhiSangh

Supreme Court of India · 01/09/2022

LIFE INSURANCE CORPORATION OF INDIA versus SANJEEV BUILDERS PRIVATE LIMITED & ANR.

[2022] 8 S.C.R. 1121 · 2022 INSC 896

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Summary

In a 1986 suit for specific performance of a 1979 agreement with LIC, the plaintiffs claimed damages of Rs. 1.01 crore. More than thirty years later, before trial, they were allowed to amend the plaint to raise the damages claim to about Rs. 400 crore, with limitation left open and LIC allowed an additional written statement. The Supreme Court dismissed LIC's appeal. Order II Rule 2 CPC bars only a later suit and does not apply to amendment in a pending suit. Constructive res judicata did not arise, and the Court's earlier refusal to implead an assignee was distinguishable. Order VI Rule 17 permits enhancing a compensation claim pleaded on existing facts, and the Court set out guiding principles on amendment.

Issues

  1. Whether Order II Rule 2 CPC or constructive res judicata bars an amendment of the plaint in a pending suit enhancing the claim for damages
  2. Whether the proviso to Section 21(5) of the Specific Relief Act, 1963 prevents amendment where compensation was already claimed in the plaint
  3. Whether the Supreme Court's earlier refusal, in the same suit, to implead an assignee after 27 years governed this amendment

Provisions considered

Held

Result

Appeal dismissed; the order allowing amendment of the plaint to enhance the damages claim was upheld; no order as to costs.

Judgment PDF: Supreme Court of India, [2022] 8 S.C.R. 1121.