Bombay High Court
M/S. GANESH LAND DEVELOPERS AND CONSTRUCTION PRIVATE LTD. THR DIRECTORS GANPAT B RAUTversusSHRADHHA REALTORS A PARTNERSHIP FIRM THR PARTNERS AVINASHKUMAR K SRIVASTAV
- Decided
- Disposal
- Disposed Off
Holding
The High Court allowed the revision, quashed the order excluding the counter‑claim, and restored the counter‑claim for determination.
Summary
The dispute arose from overlapping land claims where the plaintiff, Shradhha Realtors, sought an injunction to develop land purchased under a 2011 sale deed, while the defendants, including Ganesh Land Developers, asserted ownership of adjoining parcels claimed in a counter‑claim. The trial court excluded the counter‑claim under Order VIII Rule 6‑C of the CPC, holding there was no nexus between the suit and counter‑claim properties. On appeal, the High Court examined the statutory provisions governing counter‑claims, noting that the CPC allows a defendant to raise any independent cause of action as a counter‑claim, irrespective of property identity, and that exclusion under Rule 6‑C is a discretionary power that must be exercised judiciously. Citing Supreme Court precedents, the Court held that the trial judge applied an incorrect test by insisting on a property nexus and failed to consider the legislative intent to avoid multiplicity of suits. Consequently, the revision was allowed, the order of exclusion was set aside, and the counter‑claim was restored for trial alongside the suit.
Issues considered
- Whether a counter‑claim unrelated to the suit property can be excluded under Order VIII Rule 6‑C of the CPC.
- Whether a nexus between the suit and counter‑claim properties is a prerequisite for the admissibility of a counter‑claim.
- Whether the trial court exercised its discretion properly in excluding the counter‑claim.
- Whether the plaintiff’s right to seek exclusion outweighs the statutory purpose of consolidating disputes.
- Whether the counter‑claim is maintainable as a cross‑suit despite a different cause of action.
Legislation cited
Subjects
- counter‑claim
- Order VIII Rule 6‑C
- Civil Procedure Code
- property dispute
- injunction
- discretion
- multiplicity of suits
- revision
Judgment
-CRA-409-2026.DOC
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
CIVIL REVISION APPLICATION NO. 409 OF 2026
M/s Ganesh Land Developers & Construction
Private Limited, a Company through
ARUN
RAMCHANDRA
its Directors:-
SANKPAL
Digitally signed by
1-1 Ganpat Bhaskar Raut, Age Adult
ARUN RAMCHANDRA
SANKPAL
Date: 2026.09.29
22:15:47 +0530
Occupation : Business,
1-2 Rajendra Laxman Patil, Age Adult
Occupation : Business,
1-3 Bhalchandra Raghunath Raut,
Age Adult, Occupation Business
Having office at Near Prakash
Talkies, Behind ICICI Bank,
Ground Floor, Palghar – 401 404 ...Applicant
Versus
1. Shradhha Realtors, a Partnership
Firm through Partners:
1-1 Avinashkumar Kamleshwar
Srivastav, Age 52 years,
Occupation Business,
1-2 Chetna Raichand Shah,
Age 52 years, Occ. Business,
Both having office at Plot No. 38,
Kamal Kunj Bungalow, Vishnu
Nagar, Mahim Road, Palghar (W),
Palghar, Tal & Dist. Palghar
2. Dhanrajsingh Hanumansingh Rajput
Hajari, Age Adult, Occ. Business,
3. Laxmidevi Dhanrajsingh Rajput Hajari,
Age Adult, Occ. Business/Agriculture
4. Tejrajsingh Dhanrajsingh Rajput Hajari
Age Adult, Occ. Business/Agriculture
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5. Rajashri Alias Rajashri Tina
Dhanrajsingh Rajput Hajari,
Age Adult, Occ. Business/Agriculture
All residents of Jasoda Bhavan,
Near M.S.B. Office, Hanuman Chowk,
Old Palghar.
6. M/s R.K. Builders & Developers,
Partnership Firm through Partners
6-1 Kamal Mahadeo Dube,
Aged 42 years, Occ Business/Agriculture
Office at Hanuman Tekdi, Tekdi
Vevur, Palghar, Tal. & District Palghar. …Respondents
Mr. Sanjiv Sawant, with Bhakti Wast, i/b Samir Suryawanshi, for the
Applicant.
Mr. Sumit Kothari, for Respondent No.1.
Mr. Juzer Udaipuri, with Sofia Udaipuri and Firdaus Udaipuri, for
Respondent Nos. 2 to 5.
CORAM : N. J. JAMADAR, J.
RESERVED ON : 7th SEPTEMBER 2026
PRONOUNCED ON : 29th SEPTEMBER 2026
JUDGMENT:
1. This Revision Application is directed against an order dated 4 th
July 2026, passed by the learned Civil Judge, Palghar, whereby the
counter-claim filed by the Applicant in the Suit (RCS No. 35 of 2026),
instituted by Respondent No.1, was directed to be excluded under the
provisions of Order VIII Rule 6-C of the Code of Civil Procedure, 1908
(“the Code”).
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2. The background facts leading to this Application can be
summarized as under:
2.1 Under a registered Sale Deed dated 10th August 2011, Respondent
No. 1-the Plaintiff in RCS No. 35 of 2026, claimed to have purchased
the land bearing Survey No. 87/A/1 and 88/A/1, situated at Mouje
Palghar, more particularly described in paragraphs 6 and 7 of the Plaint
(“the suit properties”).
2.2 Under a Sale Deed dated 6 th November 2020, M/s R.K. Builders
And Developers (D6) claimed to have purchased an undivided share in
Survey Nos. 93/A/2/K/3 from Ranjitsing Hajari and another.
2.3 M/s Ganesh Land Developers And Construction Private Limited
(D5) asserted that it was the holder of the lands bearing Survey No.
93/A/2/K/2, Survey No. 86/1/E/1 and Survey No. 121/3, more
particularly described in paragraphs 2A and 2B of the Counter-claim,
filed by Defendant Nos. 1 to 6 in RCS No. 35 of 2026.
2.4 In the wake of the disputes over the demarcation and possession
of the respective suit lands, the Plaintiffs in RCS No. 35 of 2026, alleged
that Defendant No.1 and R. K. Builders and Developers (D6) were the
common holders of the land bearing Survey No. 121/3 and Survey No.
93/A/2/K/3 situated on the northern side of the suit properties. On
some portion of the northern Side boundaries, the land bearing Survey
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Nos. 93/A/2/K/2 and Survey No. 86/1, held by Defendant No.5 were
situated.
2.5 The Plaintiff has obtained permission from the Planning Authority
to erect a structure comprising ground plus seven floors. The
Defendants made an attempt to encroach over the suit properties.
2.6 On 5th November 2025, the Defendants and their hirelings
caused obstruction to the possession of, and the development being
carried out by, the Plaintiff over the suit properties with the prior
approval of the Planning Authority. On 7th November 2025 also the
Defendants and their hirelings barged into the suit properties and
caused damage to the barbed wire fencing thereof. Hence, Plaintiff
sought a decree of perpetual injunction to restrain the Defendants from
entering into the suit properties, causing obstruction to the possession
and enjoyment of the Plaintiff over the suit properties and also from
forcibly evicting the Plaintiff from the suit properties.
2.7 The Applicant and Respondent Nos. 2 to 6 herein-original
Defendant Nos. 1 to 6 resisted the suit by filing Written Statement
alongwith Counter-claim. The Defendants contended that, the Plaintiff
has obtained permission from the Planning Authority to erect a
building, over the land which does not exist at the suit site. The Plaintiff
had obtained the building permission from the Planning Authority
either by misleading or in connivance with the officers of the Planning
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Authority. On the strength thereof, the Plaintiff is trying to encroach
upon the property of the Defendants, described in paragraph 2A and 2B
of the Counter-claim (“Counter-claim property”). The Defendants have
pleaded a counter version in regard to the incident that has allegedly
occurred on 5th November 2025.
2.8 The Defendants have thus sought a declaration that the
Defendants are the owners of the Counter-claim property and for the
consequential relief to restrain the Plaintiff from causing obstruction to
the possession and enjoyment of the Defendants, and committing
encroachment, over the Counter-claim property.
2.9 During the pendency of the suit, the Defendants preferred an
Application for appointment of the Court Commissioner to demarcate
the suit and counter-claim properties and an Application under Order XI
Rules 12 and 14 of the Code, seeking production of the documents
relating to 4th April 2026 Sale Deed on the premise that the suit
properties described in the Plaint did not exist and a boundary dispute
has arisen between the Plaintiff and the Defendants. The Plaintiff filed
an Application for extension of ad-interim relief. Defendant Nos. 2 to 6,
in turn, sought a status-quo order.
2.10 By an order dated 27th March 2026, the trial Court after observing
that the dispute between the parties was in relation to the boundaries of
the suit properties and counter-claim properties, directed both the
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parties to maintain status-quo regarding the suit properties.
2.11 It seems that on 12th February 2026, a measurement was carried
out at the instance of Defendant No.5.
2.12 Thereafter, Respondent No.1-Original Plaintiff filed an
Application under Order VII Rule 11 of the Code, seeking rejection of
the Counter-claim on the ground that it was unconnected with the suit
properties, and another suit, being RCS No. 84 of 2023, wherein the
Counter-claim property was the subject matter, instituted by the third
parties, was sub-judice.
2.13 The Defendants-Plaintiffs in the Counter-claim resisted the
Application.
2.14 By the impugned order, the learned Civil Judge was persuaded to
invoke the provisions contained in Order VIII Rule 6-C of the Code to
exclude the Counter-claim from RCS No. 35 of 2026. The learned Civil
Judge was of the view that the suit properties and the Counter-claim
properties were different. There was no nexus between the Suit
properties and Counter-claim properties. Nor there was physical
overlapping of the properties. Thus, the Counter-claim deserved to be
excluded.
2.15 Being aggrieved, the Defendants have invoked the revisional
jurisdiction of this Court.
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3. I have heard Mr. Sanjiv Sawant, the learned Counsel for the
Applicant, Mr. Sumit Kothari, the learned Counsel for Respondent No.1
and Mr. Juzer Udaipuri, the learned Counsel for Respondent Nos. 2 to 5,
at some length.
4. Mr. Sanjiv Sawant, the learned Counsel for the Applicant,
submitted that the learned Civil Judge completely misconstrued the
nature of the Suit and the Counter-claim and scope of the provisions
contained in Order VIII Rule 6-C of the Code. Amplifying the
submissions, Mr. Sawant would urge, a bare perusal of the averments in
the Plaint itself indicates that the Plaintiff has approached the Court
with categorical assertions that the Counter-claim properties are
situated on the northern side of the suit properties and, in their capacity
as the holders of the adjoining lands, the Defendants have allegedly
attempted to commit encroachment over the suit properties and
threatened to dispossess the Plaintiff therefrom.
5. Mr. Sawant invited the attention of the Court to the description of
the suit properties in the Plaint, especially the boundaries thereof, and
the averments in paragraph 19 of the Plaint. The learned Civil Judge,
according to Mr. Sawant, was thus not at all justified in holding that
there was no nexus between the properties described in the Plaint and
the Counter-claim.
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6. At any rate, according to Mr. Sawant, it is not the requirement of
law that the subject matter of the Suit and Counter-claim must be
identical. Tenability of the Counter-claim depends upon the accrual of
the cause of action to the Defendants against the Plaintiff and not the
identity of the subject matter of the Suit and the Counter-claim. The
learned Judge thus committed a manifest error on facts in observing
that there was no nexus between the suit properties and the Counter-
claim properties, and a grave error of law in holding that, in the
absence of the identity of the Suit properties and the Counter-claim
properties, the Counter-claim deserved to be excluded.
7. To buttress the aforesaid submissions, Mr. Sawant placed a very
strong reliance on a judgment of the Supreme Court in the case of Jag
Mohan Chawla And Anr Vs Dera Radha Swami Satsang and Ors, 1
wherein it was enunciated that the Counter-claim need not relate to or
be connected with the original cause of action or matter pleaded by the
Plaintiff.
8. Mr. Juzer Udaipuri, the learned Counsel for Respondent Nos. 2 to
5, supplemented the submissions of Mr. Sawant. It was urged that the
claim of the Plaintiff was demonstrably flase.
9. In opposition to this, Mr. Sumit Kothari, the learned Counsel for
Respondent No.1-Plaintiff, supported the impugned order. It was urged
that the suit properties and Counter-claim properties were completely
1 (1996) 4 SCC 699.
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distinct and, therefore, the learned Civil Judge was justified in holding
that there was no nexus between the two sets of properties. In any
event, there is no element of prejudice likely to be caused to the
Applicant and co-Defendants as they can institute a separate suit
seeking declaration, ownership and possession of the Counter-claim
properties.
10. Mr. Kothari further submitted that, the Defendants do not have an
absolute and unqualified right to file the Counter-claim. The Code
empowers the Court to exclude the Counter-claim where the Court
comes to the conclusion that the claim raised by the Defendants ought
not to be disposed by way of Counter-claim but in an independent suit.
As a second limb of this submission, Mr. Kothari would urge, the
learned Civil Judge has exercised the discretion under the provisions of
Order VIII Rule 6-C of the Code, objectively. It cannot be said that the
discretion has been exercised injudiciously or arbitrarily. Such exercise
of discretion is not open for interference in the revisional jurisdiction.
11. In order to lend support to the aforesaid submissions, Mr. Kothari
placed reliance on a three Judge Bench judgment of the Supreme Court
in the case of Satyender And Ors Vs Saroj And Ors2 and a decision of a
learned Single Judge of this Court in the case of Abhishek S/o Vikram
Boke Vs Dr Ashwinikumar Arvind Deshmukh.3
2 (2022) 17 SCC 154.
3 2017 (1) Mh.L.J. 342.
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12. I have given anxious consideration to the aforesaid submissions
canvassed across the Bar. With the assistance of the learned Counsel for
the parties, I have also perused the averments in the Plaint and the
Counter-claim.
13. To begin with, it may be apposite to note the provisions of the
Code which permit the filing of a Counter-claim.
“6-A. Counter-claim by defendant.—(1) A defendant in a suit
may, in addition to his right of pleading a set-off under rule 6, set
up, by way of counter-claim against the claim of the plaintiff, any
right or claim in respect of a cause of action accruing to the
defendant against the plaintiff either before or after the filing of
the suit but before the defendant has delivered his defence or
before the time limited for delivering his defence has expired,
whether such counter-claim is in the nature of a claim for
damages or not:
Provided that such counter-claim shall not exceed the
pecuniary limits of the jurisdiction of the court.
(2) Such counter-claim shall have the same effect as a
cross-suit so as to enable the Court to pronounce a final
judgment in the same suit, both on the original claim and on the
counter-claim.
(3) The plaintiff shall be at liberty to file a written
statement in answer to the counter-claim of the defendant within
such period as may be fixed by the court.
(4) The counter-claim shall be treated as a plaint and
governed by the rules applicable to plaints.”
14. A bare perusal of the provisions contained in Order VIII Rule 6-A
of the Code makes it abundantly clear that a Defendant in a suit may, in
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addition to his right of pleading a set-off under Rule 6, set up, by way of
Counter-claim against the claim of the Plaintiff, any right or claim in
respect of a cause of action accruing to the Defendant against the
Plaintiff either before or after the filing of the Suit, but before the
Defendant has delivered his defence or before the time limited for
delivering his defence has expired. A counter-claim can be in the nature
of a claim for damages or otherwise. Such Counter-claim will have the
same effect as a cross-suit. It is governed by the rules of pleading
applicable to Plaints. Under Order VIII Rule 6-G, rules relating to a
Written Statement by a Defendant apply to the Written Statement filed
in answer to a counter-claim.
15. From the phraseology of Order VIII Rule 6-A, it becomes
evidently clear that, the right to file a Counter-claim inexorably
emanates from the cause of action that has accrued to the Defendant
against the Plaintiff either before or after the institution of the Suit, but
before the Defendant has delivered his defence. It is thus deducible that,
the limitation on the filing of the Counter-claim is with reference to the
time at which the cause of action has arisen to the Defendant against
the Plaintiff and not in regard to the subject matter of the counter-
claim.
16. Rule 6-A also does not incorporate any restraint in regard to the
nature or type of the right or claim that can be raised by the Defendant
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by way of Counter-claim. The expression, “any right or claim in respect
of a cause of action accruing to the Defendant” makes it abundantly
clear that any right or claim can be set up by the Defendant by way of a
Counter-claim. The text of Rule 6-A does not give any indication even
by implication, much less in express terms, that the Counter-claim must
flow from the claim made by the Plaintiff in the suit. In contrast, Rule 6-
A contains a clear intendment to the contrary by the use of the
expression, “by way of Counter-claim against the claim of the Plaintiff”.
This is in contradistinction to Rule 6 of Order VIII, which provides for
the set-off, that uses the expression “set-off against the Plaintiff’s
demand”.
17. The intention of the Parliament in providing an avenue to raise
any right or claim by way of counter-claim becomes even clearer if the
object and purpose of the provisions of the Rules that enable the filing
of the Counter-claim are appreciated.
18. The primary object is to avoid multiplicity of judicial proceedings
and save upon the Court’s time and also to obviate the inconvenience to
the parties by a joint determination of the claims and counter-claims
and, therefore, resolve all the disputes between the same parties in one
and the same proceeding.
19. In the case of Jag Mohan Chawla (supra), on which reliance was
placed by Mr. Sawant, the Supreme Court considered the questions :
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Whether in a suit for injunction, counter-claim for injunction in respect
of the same or a different property is maintainable ? Whether counter-
claim can be made on different cause of action ?
20. After adverting to the import of the legislative change brought
about by the CPC Amendment Act, 1976, the Supreme Court
expounded the legal position as under :-
“5. ….The counter-claim could be treated as a cross-suit and it
could be decided in the same suit without relegating the parties to a
fresh suit. It is true that in money suits, decree must be conformable
to Order 20, Rule 18, CPC but the object of the amendments
introduced by Rules 6-A to 6-G are conferment of a statutory right
to the defendant to set up a counter-claim independent of the claim
on the basis of which the plaintiff laid the suit, on his own cause of
action. In sub-rule (1) of Rule 6-A, the language is so couched with
words of wide width as to enable the parties to bring his own
independent cause of action in respect of any claim that would be
the subject-matter of an independent suit. Thereby, it is no longer
confined to money claim or to cause of action of the same nature as
original action of the plaintiff. It need not relate to or be connected
with the original cause of action or matter pleaded by the plaintiff.
The words "any right or claim in respect of a cause of action
accruing with the defendant" would show that the cause of action
from which the counter-claim arises need not necessarily arise from
or have any nexus with the cause of action of the plaintiff that
occasioned to lay the suit. The only limitation is that the cause of
action should arise before the time fixed for filing the written
statement expires. The defendant may set up a cause of action
which has accrued to him even after the institution of the suit. The
counter-claim expressly is treated as a cross-suit with all the indicia
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of pleadings as a plaint including the duty to aver his cause of
action and also payment of the requisite court fee thereon. Instead
of relegating the defendant to an independent suit, to avert
multiplicity of the proceeding and needles protection (sic
protraction), the legislature intended to try both the suit and the
counter- claim in the same suit as suit and cross-suit and have them
disposed of in the same trial. In other words, a defendant can claim
any right by way of a counter-claim in the same suit as suit and
cross-suit and have them disposed of in the same trial. In other
words, a defendant can claim any right by way of a counter-claim in
respect of any cause of action that has accrued to him even though
it is independent of the cause of action averred by the plaintiff and
have the same cause of action adjudicated without relegating the
defendant to file a separate suit. Acceptance of the contention of
the appellant tends to defeat the purpose of amendment.
Opportunity also has been provided under Rule 6-C to seek deletion
of the counter-claim. It is seen that the trial Court had not found it
necessary to delete the counter- claim. The High Court directed to
examine the identity of the property. Even otherwise, it being an
independent cause of action, though the identity of the property
may be different, there arises no illegality warranting dismissal of
counter-claim. Nonetheless, in the same suit, both
the claim in the suit and the counter-claim could be tried and
decided and disposed of in the same suit.”
21. The aforesaid exposition of law makes it abundantly clear that,
the counter-claim need not be confined to the cause of action of the
same nature as the original cause of action of the plaintiff. It need not
relate to or be connected with the original cause of action or matter
pleaded by the plaintiff. Nor does the cause of action for the counter-
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claim arise from or have any nexus with the cause of action that
constrained the plaintiff to institute the suit. The only limitation is that,
the cause of action should have arisen before the time fixed for filing
the written statement expires. The very purpose of introducing the
Rules 6-A to 6-G of Order VIII of the Code was to obviate multiplicity of
the proceedings and avoidable protraction of the proceedings by
empowering the Court to try and decide both the suit and the counter-
claim in one and the same proceeding as suit and cross-suit, even
though the counter-claim stems out of an independent cause of action
that has accrued to the defendants against the plaintiff.
22. In the aforesaid judgment the Supreme Court has expressly
observed that, though the identity of the property may be different that
does not warrant dismissal of the counter-claim.
23. Mr. Kothari, the learned Counsel for Respondent No.1, made a
strenuous effort to drive home the point that, the aforesaid decision in
the case of Jag Mohan Chawla (supra), was considered by a three-Judge
Bench of the Supreme Court in the case of Satyender & ors. (supra).
And, yet, the three-Judge Bench of the Supreme Court enunciated that,
the counter-claim should have been excluded under the provisions of
Order VIII Rule 6-C of the Code. Reliance was placed by Mr. Kothari on
the following observations :-
“23. The counter-claim shall be treated as a plaint and governed by
the rules applicable to plaints A counter claim can be set up only
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“against the claim of the plaintiffs”. Since there was no claim of the
plaintiffs regarding Killa No. 6//8 and 23, the defendants were
barred to raise any counter claim on these Killa numbers in view of
Order 8 Rule 6-A CPC as it has nothing to do with the plaintiffs. It
is true that a counter claim can be made by the defendant, even on
a separate or independent cause of action [ Jag Mohan Chawla v.
Dera Radha Swami Satsang (1996) 4 SCC 699].
24. The Legislature permits the institution of a counter claim, in
order to avoid multiplicity of litigation. But then it has certain
limitations such as that the counter claim cannot exceed the
pecuniary limits of the jurisdiction of the court, and that such
counter claim must be instituted before the defendant has
delivered his defence or before the time limit for delivering his
defence has expired. More importantly, such a counter claim must
be against the plaintiff ! Evidently, in the present case the counter
claim was not against the plaintiffs. Moreover, as the plaintiffs had
not claimed any right over the property and the Killa Nos. 6//8
and 23 are not even a part of the suit property described in the
plaint by the plaintiffs. Despite the same, such a claim has been
allowed against the plaintiffs. In fact, we do not find on record any
reply submitted by the plaintiffs against the counter claim. To be
fair, such a counter claim should have been excluded in terms of
Order 8 Rule 6-C CPC. Suffice it to state here that the counter
claim set up by the defendants has been rightly rejected by the
High Court.”
24. The aforesaid observations are required to be appreciated in the
backdrop of the facts of the case as recorded by the Supreme Court in
Paragraph No.21, which reads as under :-
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“21. The other finding of second appellate court regarding the
counterclaim of the defendants on Killa Nos. 6//18 and 23 is,
however, correct and is based on right interpretation of Order
8 Rule 6-A CPC. From the pleadings of the plaintiffs, it is clear
that they had never raised any claim on Killa No. 6//18 or
Killa No. 23. The defendants in their written statement while
denying the rights of the plaintiffs on the land of which
particulars had been given by the plaintiffs, quite ingeniously
inserted the two Killa Nos.6//18 and 23, setting a counter-
claim on these plots. The trial court and the first appellate
court while dismissing the plaintiffs’ suit had allowed this
claim for (sic) without assigning any reasons. In fact, this
counterclaim which was raised by the defendant is barred
under Order 8 Rule 6-A CPC.”
25. It is pertinent to note, the Supreme Court did not deviate from
the enunciation of law in the case of Jag Mohan Chawla (supra). On the
contrary, the three-Judge Bench in terms observed that, a counter-claim
can be made by the defendant, even on a separate or independent cause
of action and for that proposition, reference was made to the decision in
the case of Jag Mohan Chawla (supra). On facts, the Supreme Court
found that, the defendants therein had not made any counter-claim
against the plaintiffs and, in that context, the Supreme Court observed
that, a counter-claim must be against the plaintiff and the claim made
by the defendants was in respect of the properties which were not even
part of the suit properties described in the plaint and, thus, such a
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counter-claim should have been excluded in terms of Order VIII Rule 6-
C of the Code.
26. The aforesaid decision, cannot be read as laying down the
proposition that, the counter-claim must relate to the property which is
the subject matter of the suit or must arise or flow from the cause of
action pleaded by the plaintiff. On the contrary, the three-Judge Bench
has reiterated in no uncertain terms that, a counter-claim can be made
by the defendant, even on a separate or independent cause of action.
27. This propels me to the justifiability of the exercise of discretion by
the trial Court to exclude the counter-claim under the provisions of Rule
6-C of Order VIII of the Code. It reads as under :-
ORDER VIII
“6-C. Exclusion of counter-claim. - Where a defendant
sets up a counter-claim and the plaintiff contends that
the claim thereby raised ought not to be disposed of by
way of counter-claim but in an independent suit, the
plaintiff may, at any time before issues are settled in
relation to the counter-claim, apply to the Court for an
order that such counter-claim may be excluded, and the
Court may, on the hearing of such application make such
order as it thinks fit.”
28. A plain reading of the aforesaid Rule would indicate that, it
enables the plaintiff to apply to the Court that the claim raised by the
defendant by way of a counter-claim ought not be disposed of as a
counter-claim but in an independent suit. The plaintiff may activate the
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said Rule at any time before the settlement of issues in relation to the
counter-claim. The Rule confers discretion on the Court to make such
order as it thinks fit. Evidently, the Court may exercise the discretion to
exclude the counter-claim or direct that the counter-claim shall be tried
and disposed of as a cross-suit.
29. Undoubtedly, the Rule 6-C vests discretion in the Court to pass an
order to exclude the counter-claim. However, such discretion is required
to be exercised by the Court in a judicious manner as is the norm for the
exercise of discretion wherever the legislature vests discretion in the
Court. A judicious exercise of discretion would enjoin the Court to be
cognizant of all the relevant factors which bear upon the same. The
discretion cannot be exercised unreasonably or arbitrarily, dehors the
weight of the facts and circumstances of the given case.
30. The thrust of the submission of Mr. Kothari was that, the
legislative intention in enabling the plaintiff to apply to the Court to
exclude the counter-claim is required to be kept in view. If the plaintiff
applies to the Court and the Court, in turn, finds it expedient to exclude
the counter-claim, such exercise of discretion cannot be interfered with.
A very strong reliance was placed by Mr. Kothari on the judgment of this
Court in the case of Abhishek Boke (supra). In the said case, a learned
Single Judge of this Court, construed the provisions of Rule 6-C as
under :-
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“13. …..The intention of the Legislature in incorporating
Rule 6-C of Order 8 of the Code of Civil Procedure is clear
and suggests that the request made on behalf of the plaintiff
to exclude the counter-claim, has to be given due
weightage. It is the cardinal principle in judicial proceedings
that the party to the proceedings has the inherent right to
oppose any claim made by the other party, even if there is
no provision in the statute providing a right to the party to
oppose the claim of the other party. Therefore, when Rule 6-
C is incorporated in Order 8 of the Code of Civil Procedure,
it is clear that the Court is bound to consider the request of
the plaintiffs. Though the latter part of Rule 6-C of Order 8
of the Code of Civil Procedure gives discretion to the Court
to pass appropriate orders on the application made by the
plaintiffs requesting that the counter-claim be excluded, the
discretion will have to be exercised in favour of the plaintiff.
The object of Rule 6-C of Order 8 of the Code of Civil
Procedure appears to be based on the cardinal principle that
the plaintiff is dominus litis and it it is the right of the
plaintiff to proceed with the civil suit in the manner he feels
proper and best suited for proving his case. If the defendant
is permitted to make counter-claim, he gets the right to
steer the civil suit as per his wishes and in certain situations
there may be a conflict between the plaintiff and the
defendant on the point as to how the civil suit should
proceed.
If the provisions of Rule 6C of Order 8 of the Code of Civil
Procedure are not given the above meaning, but are
construed to mean that the request of the plaintiff to
exclude the counter-claim is immaterial, then the provisions
of Rule 6C of Order 8 of the Code of Civil Procedure will be
rendered nugatory.”
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31. Indeed, the learned Single Judge, has enunciated in terse terms
that the request made on behalf of the plaintiff to exclude the counter-
claim, has to be given due weightage. The aforesaid enunciation is
premised on the principle that, the plaintiff is dominus litus and has the
right to proceed with the suit in the manner he feels proper and best
suited for the prosecution of his cause.
32. The aforesaid pronouncement, in the considered view of this
Court, however cannot be construed as giving the plaintiff a carte
blanche. As indicated above, the Rule enables the plaintiff to apply to
the Court to have the counter-claim excluded. Ultimately, it is in the
discretion of the Court to pass such order as it thinks fit. The ratio of the
aforesaid pronouncement is that, the Court while considering the
question as to whether the counter-claim is required to be excluded
ought to have due regard to the application made by the plaintiff and
deal with the grounds on which the exclusion of the counter-claim is
sought. The Rule cannot be read to mean that, the plaintiff’s wish has to
be necessarily accepted by the Court, for the simple reason that, if it so
construed, the discretion conferred on the Court would be subjugated to
the desire of the plaintiff.
33. Moreover, it is an established canon of interpretation of statutes
that one provision cannot be read in isolation. To gather the real
intention of the legislature, the statute is required to be read as a whole,
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section by section, clause by clause and word by word. A profitable
reference, in this context, can be made to a judgment of the Supreme
Court in the case of Reserve Bank of India Vs Peerless General Finance
& Investment Co. Ltd., & ors.4, which enunciates the position as under :-
“33. Interpretation must depend on the text and the context.
They are the bases of interpretation. One may well say if the
text is the texture, context is what gives the colour. Neither can
be ignored. Both are important. That interpretation is best
which makes the textual interpretation match the contextual. A
statute is best interpreted when we know why it was enacted.
With this knowledge, the statute must be read, first as a whole
and then section by section, clause by clause, phrase by phrase
and word by word. If a statute is looked at, in the context of its
enactment, with the glasses of the statute-maker, provided by
such context, its scheme, the sections, clauses, phrases and
words may take colour and appear different than when the
statute is looked at without the glasses provided by the context.
With those glasses we must look at the Act as a whole and
discover what each section, each clause, each phrase and each
word is meant and designed to say as to fit into the scheme of
the entire Act. No part of a statute and no word of a statute can
be construed in isolation. Statutes have to be construed so that
every word has a place and everything is in its place. It is by
looking at the definition as a whole in the setting of the entire
Act and by reference to what preceded the enactment and the
reasons for it that the Court construed the expression 'Prize Chit'
in Srinivasa and we find no reason to depart from the Court's
construction.”
(emphasis supplied)
4 AIR 1987 SC 1023
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34. Applying the aforesaid well recognized principle of statutory
interpretation the provisions contained in Rule 6-C of Order VIII of the
Code are required to be read harmoniously with the provisions
contained in Rule 6-A of Order VIII of the Code. By giving primacy to
the provisions contained in Order VIII Rule 6-C of the Code and the
wishes of the plaintiff, an interpretation which defeats the object of
avoiding the multiplicity of the proceedings and ensuring the
determination of all the questions in controversy between the parties in
the same proceeding by trying the suit and the cross-suit, cannot be
adopted.
35. In a given case, the Court may, having regard to the nature of the
counter-claim find it appropriate that, the counter-claim be excluded
and the claim therein be tried in an independent suit. A variety of
factors may influence the exercise of discretion by the Court when
called upon to consider the question of exclusion of the counter-claim.
The nature of the counter-claim, the progress made in the suit, the
complexity of the matter that may arise if the suit and the counter-claim
are tried together, the likelihood of the protraction in the event of trial
of the suit and the counter-claim together, and the like are the factors
which may bear upon the exercise of discretion. However, the ipse dixit
of the plaintiff cannot unduly weigh with the Court.
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36. In the light of the aforesaid position in law, re-adverting to the
facts of the case, the prime reason which seems to have weighed with
the trial Court is that, the properties in the suit and the counter-claim
were different and there did not appear to be any nexus between the
properties in the suit and the counter-claim. In law, as noted above, the
identity of the property is not necessary for the filing of the counter-
claim by the defendant. The learned Civil Judge, thus, applied an
incorrect test to decide the question as to whether the counter-claim
was required to be excluded.
37. Even on facts, the learned Civil Judge, was in error in observing
that, there was no nexus between the suit properties and the counter-
claim properties. Not only in the description of the suit properties, were
the counter-claim properties shown to be situated on the northern
boundary of the suit properties but also in Paragraph No. 19 of the
plaint, the plaintiff has made categorical assertion that, the counter-
claim properties i.e. Survey Nos. 121/3 and 93/A/2/K/3 were situated
on the northern side of the suit properties and the Defendant Nos.1 to 6
were the common owners of the said properties.
38. The learned Civil Judge lost sight of the fact that, the very genesis
of the dispute between the parties was the alleged obstruction to the
possession and enjoyment of the plaintiff over the suit properties, and
the hindrances sought to be put in the development of the suit
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properties by the defendants, who laid claim over the contiguous and
adjoining counter-claim properties. Thus, the learned Civil Judge clearly
misdirected himself in observing that, there was no nexus between the
suit properties and the counter-claim properties.
39. This Court finds that, in the facts of the case, the determination of
the suit and the cross-suit, in one and the same proceeding, is
indispensable for a complete and effectual adjudication of all the
disputes between the parties. The exclusion of the counter-claim will
give rise to multiplicity of the proceedings and is also fraught with the
risk of protracted litigation and conflicting orders as well.
40. The conspectus of the aforesaid consideration is that, the
impugned order cannot be sustained as the learned Civil Judge has not
exercised the discretion in a judicious manner. The revision application,
therefore, deserves to be allowed.
41. Hence, the following order :-
::ORDER::
(i) The Civil Revision Application stands allowed.
(ii) The impugned order dated 04th July, 2026,
stands quashed and set aside.
(iii) The counter-claim stands restored to the file of
trial Court.
(iv) The trial Court is requested to decide the suit
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and the counter-claim in accordance with the
provisions of law, as expeditiously as possible.
(v) It is clarified that, the consideration was
confined to determine the legality, propriety and
correctness of the order of exclusion of the counter-
claim and the observations hereinabove shall not be
construed as an expression of opinion on the merits of
the matter.
No costs.
[N. J. JAMADAR, J.]
ARS/SAINATH 26/26
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