Summary
A three-judge reference considered whether a counterclaim must accompany the written statement. The Court held that the statutory restriction concerns accrual of the cause of action and does not absolutely bar later filing. Permission remains discretionary and subject to limitation and procedural fairness. The majority fixed framing of issues as the outer limit; the separate opinion would exceptionally permit filing until commencement of the plaintiff’s evidence. The underlying petition was left for merits adjudication.
Issues
- Whether a counterclaim could be filed after the written statement.
- What restrictions governed permission for a belated counterclaim.
Provisions considered
- Order VIII Rule 6A, Code of Civil Procedure, 1908The cause of action must accrue within the prescribed defence-related period, but filing need not necessarily accompany the written statement. Limitation and judicial discretion still constrain later filing. (¶¶ Ramana J: 9, Ramana J: 16, Ramana J: 17, Ramana J: 20)
Held
- The accrual restriction must not be confused with the time of filing. A counterclaim is treated as a plaint and must comply with the applicable limitation period. (¶¶ Ramana J: 9, Ramana J: 16)
- Later filing is not an absolute right. The majority pegged the outer limit at framing of issues and required consideration of delay, limitation, reasons, assertion of rights, connected causes, fresh-litigation costs, abuse, prejudice and individual circumstances. (¶¶ Ramana J: 17, Ramana J: 18, Ramana J: 19, Ramana J: 20)
- The separate opinion agreed that filing with the written statement was not mandatory but would exceptionally allow a later counterclaim until commencement of recording the plaintiff’s evidence. (¶¶ Shantanagoudar J: 1, Shantanagoudar J: 23, Shantanagoudar J: 24, Shantanagoudar J: 25)
Result
Reference answered. The special leave petition was directed to be placed before an appropriate Bench, after orders of the Chief Justice, for consideration on merits. The validity of the particular counterclaim was not finally decided by this reference.