STATE OF MADHYA PRADESHversusUNION OF INDIA & ANR.
- Citation
- 2011 INSC 583
- Decided
- 17 August 2011
- Disposal
- Disposed off
- Bench
- P SATHASIVAM
Holding
An amendment that introduces a new constitutional challenge and alters the fundamental character of a suit filed under Article 131 cannot be permitted; the amendment application is dismissed.
Summary
The State of Madhya Pradesh filed an original suit under Article 131 of the Constitution challenging the Central Government's notifications issued under sections 58(3) and 58(4) of the Madhya Pradesh Reorganisation Act, 2000, which dissolved the M.P. Electricity Board and apportioned its assets. In 2009, the State sought to amend the plaint to also claim that those statutory provisions violated Article 14. The Supreme Court examined whether the amendment could be allowed under Order VI Rule 17 of the CPC and Order XXVI Rule 8 of the Supreme Court Rules, considering the belated filing, the change in the nature of the suit, and the appropriate forum for constitutional challenges. The Court held that the amendment would introduce a new and inconsistent claim, alter the fundamental character of the suit, and that challenges to central legislation are ordinarily to be pursued via writ jurisdiction, not the exclusive original jurisdiction of Article 131. Consequently, the amendment application was dismissed, though the Court permitted the State to raise objections about the lack of guidelines at trial.
Issues considered
- The amendment of the plaint may be allowed at a late stage under Order VI Rule 17 CPC and Order XXVI Rule 8 SC Rules.
- Whether the proposed amendment changes the nature of the original suit filed under Article 131.
- Whether a constitutional challenge to sections 58(3) and 58(4) of the MPR Act is maintainable in an original suit under Article 131 or should be pursued under writ jurisdiction (Articles 32/226).
- Whether the delay and lack of explanation for filing the amendment justify refusal of the amendment.
Legislation cited
- Code of Civil Procedure, 1908s. Order VI Rule 17
- Constitution of Indias. Article 131, s. Article 131A, s. Article 14, s. Article 226, s. Article 31, s. Article 32
- Madhya Pradesh Reorganisation Act, 2000s. 58(3), s. 58(4)
- Supreme Court Rules, 1966s. Order XXVI Rule 8
Subjects
Judgment
[2011] 12 S.C.R. 140
A STATE OF MADHYA PRADESH
v.
UNION OF INDIA & ANR.
I.A. NO. 4 OF 2009
in
B Original Suit No. 6 of 2004
AUGUST 17, 2011
[P. SATHASIVAM AND DR. B.S. CHAUHAN, JJ.]
C Supreme Court Rules, 1966 - Order XXVI, Rule 8 -
Code of Civil Procedure, 1908 - Order VI, Rule 17 -
Amendment of pleadings - Central Government issued
Notifications/Orders u/ss.58(3) & 58(4) of the Madhya Pradesh
Re-organisation Act (MPR Act), notifying the date of
D dissolution of the M.P. Electricity Board (MPEB) and
apportioning its assets, rights c..nd liabilities between
successor Electricity Boards for the reorganized States of
Madhya Pradesh and Chhattisgarh '."'" The State of Madhya
Pradesh approached Supreme Court invoking original
E jurisdiction u!Article 131 of the Constitution and praying that
the said Notifications/Orders be declared null and void for
being arbitrary, unjust and unfair - 5 years later, the plaintiff-
State filed amendment application, praying for incorporation
of additional relief in the plaint viz. to declare ss.58(3) & 58(4)
F of the MPR Act as violative of Article 14 of the Constitution -
Held: Inasmuch as the plaintiff-State of Madhya Pradesh
approached Supreme Court invoking original jurisdiction u/
Article 131 of the Constitution, the Supreme Court Rules have
to be applied to the case in hand - Order XXVI, Rule 8 of the
G Rules (which is similar to Order VI, Rule 17 CPC) prescribes
that at any stage of the proceedings, the Court may allow
either party to amend his pleadings - However, it must be
established that the proposed amendment is necessary for
the purpose of determining the real question in controversy
H 140
STATE OF MADHYA PRADESH v. UNION OF INDIA & 141
ANR.
between the parties - The original plaint proceeds on the A
basis that exercise of power by the Central Government by
passing the impugned Notifications ulss.58(3) and 58(4) of
the MPR Act was arbitrary, unjust and unfair and had resulted
in serious anomalies in the apportionment of assets and
liabilities - After praying for such relief, if the amendment as B
sought for by the plaintiff is allowed and the plaintiff is
permitted to challenge the vires of the said provisions, then
the very basis on which the plaintiff is claiming its right to
apportionment of assets, rights and liabilities of the undivided
Board will cease to be in existence and the entire suit of the c
plaintiff will be rendered infructuous - Leave to amend ought
to be refused if it introduces a totally different, new and
inconsistent case or challenges the fundamental character of
the suit - Also, the amendment application was filed at a
belated stage - The plaintiff-State did not assign any reason 0
for not taking steps and for waiting for five years - However,
plaintiff given opportunity to put forth its-stand that the Central
Government issued impugned Notifications/Orders without
proper guidelines and affording opportunity to the parties
concerned - In the interest of justice, plaintiff-State permitted E
to raise such objections at the time of trial - Pleadings -
Constitution of India, 1950 - Article 131 - Madhya Pradesh
Re-organisation Act, 2000 - s.58(3) and s.58(4).
Code of Civil Procedure, 1908 - Order VI, Rule 17 -
Purpose and object of - Held: The purpose and object of F
Order VI Rule 17 of CPC is to allow either party to alter or
amend his pleadings in such manner and on such terms as
may be just - Amendment cannot be claimed as a matter of
right and under all circumstances, but the Courts while
deciding such prayers should not adopt a hyper-technical G
approach - Liberal approach should. be the general rule
particularly, in cases where the other side can be
compensated with costs - Normally, amendments are allowed
in the pleadings to avoid multiplicity of litigations - Pleadings.
H
142 SUPREME COURT REPORTS [2011] 12 S.C.R.
I\ Jurisdiction - In regard to questions as to constitutionality
of Central laws - Power of judicial review of the writ courts -
On facts, plaintiff-State sought to challenge the validity of a
Central law in a proceeding (suit) initiated under Article 131
of the Constitution - Held: Normally, for questions relating to
s validity of Central or other laws, the appropriate forum is
extraordinary writ jurisdiction under Articles 32 and 226 of the
Constitution in a writ petition and not an original suit filed
under Article 131 which vests exclusive jurisdiction of this
Court as regHrds the dispute enumerated therein -
c Constitution of India, 1950 ~Articles 32, 131and 226.
In the year 2004, the State of Madhya Pradesh filed
an Original Suit before this Court under Article 131 of the
Constitution of India calling for the records relating to the
impugned Notifications/Orders dated 02.11.2004 and
D 04.11.2004 issued by the 1st Defendant-Union of India
under Sections 58(3) and 58(4) of the Madhya Pradesh
Re-organisation Act, 2000 (MPR Act), notifying the date
· of dissolution of the M.P. Electricity Board (MPEB) and
apportioning its assets, rights and liabilities between the
E successor Electricity Boards for the reorganized States
of Madhya Pradesh and Chhattisgarh and to declare
them null and void as the same were unconstitutional and
for certain other reliefs. In the year 2009, the plaintiff-State
of Madhya Pradesh filed I.A. No.4 of 2009- application for
F amendment of the plaint, praying for incorporation of
additional relief in the plaint viz. to declare Sections 58(3)
and 58(4) of the MPR Act as violative of Article 14 of the
Constitution.
G 1st Defendant-Union of India, apart from disputing its
maintainability on delay and laches also contested on
merits. 2nd Defendant-State of Chhattisgarh objected to
the amendment on the ground that the same was totally
misconceived and untenable in law and that no recourse
H whatsoever could be permitted to challenge the validity
STATE OF MADHYA PRADESH v. UNION OF INDIA & 143
ANR.
of a Central law under the exclusive jurisdiction of this · A
Court under Article 131 of the Constitution. The State of
Chhattisgarh further contended that since the plaintiff.
State of M;P., on one hand was seeking a prayer that 1st
defendant must perform its duty in accordance with the
Statute and, on the other hand, was challenging the B
validity of the very same Statute and, therefore, it was
liable to be dismissed.
Disposing of I.A. No. 4 of 2009, the Court
HELD:1.1. Order VI Rule 17 of the Code of Civil C
Procedure, 1908 enables the parties to make amendment
of the plaint. The provision deals with amendment of
pleadings. By Amendment Act 46 of 1999, this provision
was deleted. It was again been restored by Amendment
Act 22 of 2002 but with an added proviso to· prevent D
application for amendment being allowed after the trial
has commenced, unless the Court comes to the
conclusion that inspite of du~ diligence, the party could
not have raised the matter before the commencement of
trial. The proviso, to some extent, curtails absolute E
discretion to allow amendment at any stage. Now, if
application is filed after commencement of trial, it must
be shown that inspite of due diligence, such amendment
could not have been sought earlier. The purpose and
object of Order VI Rule 17 of the Code is to allow either F
party to alter or amend his pleadings in such manner and
on such terms as may be just. Amendment cannot be
claimed as a matter of right and under all circumstances,
but the Courts while deciding such prayers should not
adopt a hyper-technical approach. Liberal approach G
should be the general rule particularly, in cases where the
other side can be compensated with costs. Normally,
amendments are allowed in the pleadings to avoid
multiplicity of litigations. [Para 8) [149-G; 150-C-F]
1.2. However, inasmuch as the plaintiff-State of H
144 SUPREME COURT REPORTS [2011] 12 S.C.R.
A Madhya Pradesh approached this Court invoking the
original jurisdiction under Article 131 of the Constitution,
the Rules framed by this Court, i.e., The Supreme Court
Rules, 1966 have to be applied to the case on hand.
Order XXVI of the Rules speaks about "Pleadings
B Generally" and Rule 8 thereof, which is similar to Order
VI Rule 17 of the Code, prescribes that at any stage of
the proceedings, the Court may allow either party to
amend his pleadings. However, it must be established
that the proposed amendment is necessary for the
c purpose of determining the real question in controversy
between the parties. [Para 9] [150-G-H; 151-A-B]
Surender Kumar Sharma v. Makhan Singh (2009) 10
SCC 626; North Eastern Railway Administration, Gorakhpur
v. Bhagwan Das (dead) by LRS (2008) 8 SCC 511: 2008 (6)
D SCR 416; Usha Devi v. Rijwan Ahamd and. Others (2008) 3
SCC 717: 2008 (1) SCR 795 (iv)Rajesh Kumar Aggarwal and
Others v. K.K. Modi and Others (2006) 4 SCC 385: 2006 (3)
SCR 175; Revajeetu Builders and Developers v.
Narayanaswamy and Sons and Others (2009) 10 SCC 84:
E 2009 (15) SCR 103 - referred to.
2.1. The plaintiff-State filed the application for
amendment of plaint at a belated stage. It is true that
there is no embargo in Order VI Rule 17 of CPC and in
F Order XXVI Rule 8 of the Supreme Court Rules which
alone govern the procedural aspects. However, the fact
remains that the plaintiff has not assigned any reason for
not taking steps when the State had approached this
Court under Article 131 by way of a suit even in the year
G 2004 and waited till 2009. Throughout the pendency of the
suit since 01.12.2004, no issue whatsoever was ever
raised by the plaintiff as to the validity or constitutionality
of the statutory provisions. [Paras 14, 15] [156-E-F; 157-
A-C]
H 2.2. Further, MPEB being the successor Electricity
STATE OF MADHYA PRADESH v. UNION OF INDIA 145
&ANR.
Board for the reorganized State of M.P., a necessary party A
to the present /is, had filed a separate Writ Petition before
this Court under Article 32 of the Constitution where
identical pleadings and prayers were made. Though the
MPEB approached this Court by way of a writ petition
under Article 32, admittedly, the vires of those sections B
were never challenged. In the said writ petition, the
present plaintiff was also a party, even then the plea of
constitutionality was not raised. Subsequently, the said
writ petition along with three other writ petitions were
disposed of by this Court vide judgment dated c
13.09.2006. This Court did not find any infirmity
whatsoever in the manner of exercise of power by the
Central Government under Sections 58(3) and 58(4) of the
MPR Act while upholding the notifications dated
02.11.2004 and 04.11.2004 as being· constitutional and not 0
suffering from any vice of arbitrariness as claimed by the
plaintiff-State of M.P. and MPEB. [Para 16] [157-D·H; 158-
A]
3. By way of present amendment, the plaintiff-State
of M.P. is seeking to challenge the validity of the Central E
law in a proceeding (suit) initiated under Article 131 of the
Constitution. Normally, for questions relating to validity
of Central or other laws, the appropriate forum is the
extraordinary writ jurisdiction· under Articles 32 and 226
of the Constitution in a writ petition and not an original F
suit filed under Article 131 which vests exclusive
jurisdiction of this· Court as regards the dispute
enumerated therein. Article 131A of the Constitution
inserted by (42nd Amendment) Act 1976, provided for
exclu~ive jurisdiction to this Court in regard to questions G
as to constitutionality of Central laws. The said Article
131A viewed as substantially curtailing the power of
judicial review of the writ courts, that is, High Courts
under Article 226 and this Court under Article 32 was
omitted vide Constitution (43rd Amendment) Act, 1977. It H
146 SUPREME COURT REPORTS [2011] 12 S.C.R.
A follows that when the Central laws can be challenged in
the State High Courts as well and also before this Court
under Article 32, normally, no recourse can be permitted
to challenge the validity of a Central law under the
exclusive original jurisdiction of this Court provided
B under Article 131. [Para 7] [158-B-F]
4. Further, the original plaint proceeds on the basis
that the exercise of power by the Central Government by
passing the impugned Notifications dated 02.11.2004 and
C 04.11.2004 under Sections 58(3) and 58(4) of the MPR Act
was arbitrary, unjust and unfair and had resulted in
serious anomalies in the apportionment of assets and
liabilities. After praying for such relief, if the amendment
as sought for by the plaintiff is allowed and the plaintiff
is permitted to challenge the vires of the said provisions,
D then the very basis on which the plaintiff is claiming its
right to apportionment of assets, rights and liabilities of
the undivided Board will cease to be in existence and the
entir_e suit of the plaintiff will be rendered infructuous.
Moreover, it is settled principle of law that leave to amend
E will be refused if it introduces a totally different, new and
inconsistent case or challenges the fundamental
character of the suit. However, in spite of the above
conclusion, it is felt that the plaintiff may be given an
opportunity to put forth its stand that the Central
F Government issued impugned Notifications/Orders
without proper guidelines and affording opportunity to
the parties concerned. In the interest of justice, plaintiff-
State of M.P. is permitted to raise such objections at the
time of trial by placing acceptable materials. [Paras 19,
G 20] [159-B-F]
Case Law Reference:
(2009) 1o sec 626 referred to Para 9
2008 (6) SCR 416 referred to Para 9
H
STATE OF MADHYA PRADESH v. UNION OF INDIA & 147
ANR.
2008 (1) SCR 795 referred to Para 9 A
2006 (3) SCR 175 referred to Para 9
2009 (15) SCR 103 referred to Para 9
CIVIL ORIGINAL JURISDICTION : I.A. No. 4 of 2009. B
IN
Original Suit No. 6 of 2004.
H.P. Raval, ASG, C.S. Vaidaynathan, A, Mariarputham,
Ravi Shankar Prasad, G. Umapathy, Sudha Umapathy, Rakesh c
K. Sharma, T.A. Khan, R.K. Tanwar, Yusuf Khan, V.K. Verma,
Suparna Srivastava, Rajesh Srivastava for the appearing
parties.
The Judgment of the Court was delivered by
D
P. SATHASIVAM, J. 1. In the year 2004, the State of
Madhya Pradesh has filed Original Suit No. 6 of 2004 before
this Court under Article J31 of the Constitution of India calling
for the records relating to the impugned Notifications/Orders
dated 02.11.2004 and 04.11.2004 issued by the 1st Defendant- E
Union of India under Sections 58(3) and 58(4) of the Madhya
Pradesh Re-organisation Act, 2000 (hereinafter referred to as
"MPR Act"), notifying the date of dissolution of the M.P.
Electricity Board (in short "the MPEB") for the undivided State
of Madhya Pradesh and apportioning its assets, rights and F
liabilities between the successor Electricity Boards for the
reorganized States of Madhya Pradesh and Chhattisgarh and
to declare them null and void as the same are unconstitutional
and for certain other reliefs.
2. In the said suit, the plaintiff-State of Madhya Pradesh G
filed an application for amendment of plaint being I.A. No.4 of
2009 seeking, inter a/ia, the amendment to the effect that
Sections 58(3) and 58(4) of the MPR Act are violative of Article
14 of the Constitution of India inasmuch as it enables the
H
148 SUPREME COURT REPORTS [2011] 12 S.C.R.
A Central Government to determine without any guidelines the
manner of exercise of power while deciding the basis of
apportionment of the assets and liabilities of the successor
Boards.
3. 1st Defendant-Union of India, apart from disputing its
8
maintainability on delay and laches also contested on merits.
4. 2nd Defendant-State of Chhattisgarh has objected to
the amendment on the ground that the same is totally
misconceived and untenable in law and that no recourse
C whatsoever can be permitted to challenge the validity of a
Central law under the exclusive jurisdiction of this Court under
Article 131 of the Constitution of India. The State of
Chhattisgarh has also contended that the plaintiff-State of M.P.,
on the one hand is seeking a prayer that 1st Defendant must
D perform its duty in accordance with the Statute and, on the other
hand, is challenging the validity of the very same Statute and,
therefore, it is liable to be dismissed.
5. Heard Mr. C.S. Vaidyanathan, learned senior counsel
E for the applicant/plaintiff-State of Madhya Pradesh, Mr. H.P.
Raval, learned Additional Solicitor General for Respondent No.
1/lst Defendant-Union of India and Mr. Ravi Shankar Prasad,
learned senior counsel for Respondent No. 2/2nd Defendant-
State of Chhattisgarh.
F 6. In view of the fact that at present we are concerned with
l.A.No.4 of 2009 - application for amendment of plaint, there
is no need to traverse all the factual details as stated in the
plaint and written statement. However, it is relevant to point out
the reliefs prayed for by the plaintiff in the main suit which are
G as under:
"(a) Call for the records relating to the impugned
Notifications/Orders dated 02.11.2004 and 04.11.2004
and declare the same as null and void as the same is
unconstitutional and in violation of Article 14 of the
H
Constitution;
STATE OF MADHYA PRADESH v. UNION OF INDIA & 149
ANR. [P. SATHASIVAM, J.]
(b) Direct 1st defendant to dissolve MPEB in consonance A
with other orders/directions dated 12.04.2001, 04.12.2001
and 23.05.2003 passed by the 1st defendant under
Section 58(4) of MPRA;
(c) Direct the 1st Defendant by way of mandatory injunction B
to perform its constitutional and the statutory duty to lay
down proper criteria for apportionment of assets, rights
and 'liabilities in accordance with law and to ensure
equitable, just, fair and reasonable apportionment of
assets, rights and liabilities amongst the successor C
Boards on the basis of revenue potential so as to avoid
undue hardship and disadvantage to any of the successor
Boards; and .
(d) Pass any other order and/or direction, as this Hon'ble
Court may deem fit and proper in the facts and D
circumstances of the case."
7. In the present application, i.e., I.A. No.4 of 2009, the
applicant-State of M. P. has prayed for amendment of the plaint
by adding the following relief: E
"(b) to permit additional relief to be incorporated in the
Plaint viz., declare Sections 58(3) and 58(4) of the Madhya
Pradesh State Re-organisation Act, 2000 is being
unconstitutional, arbitrary and violative of Article 14 of the
Constitution" F
8. In order to consider the claim of the plaintiff and the
opposition of the defendants, it is desirable to refer the relevant
provisions. Order VI Rule 17 of the Code of Civil Procedure,
1908 (in short 'the Code') enables the parties to make G
amendment of the plaint which reads as under;
· "17. Amendment of pleadings - The Court may at any
stage of the proceedings allow either party to alter or
amend his pleadings in such manner and on such terms
H
150 SUPREME COURT REPORTS [2011) 12 S.C.R.
A as may be just, and all such amendments shall be made
as may be necessary for the purpose of determining the
real questions in controversy between the parties:
Provided that no application for amendment shall be
allowed after the trial has commenced, unless the Court
B
comes to the conclusion that in spite of due diligence, the
party could not have raised the matter before the
commencement of trial."
The above provision deals with amendment of pleadings. By
C Amendment Act 46 of 1999, this provision was deleted. It has
again been restored by Amendment Act 22 of 2002 but with
an added proviso to prevent application for amendment being
allowed after the trial has commenced, unless the Court comes
to the conclusion that in spite of due diligence, the party could
D not have raised the matter before the commencement of trial.
The proviso, to some extent, curtails absolute discretion to allcw
amendment at any stage. Now, if application is filed after
commencement of trial, it mu$t be shown that in spite of due
diligence, such amendment could not have been sought earlier.
E The purpose and object of Order VI Rule 17 of the Code is to
allow either party to alter or amend his pleadings in such
manner and on such terms as may be just. Amendment cannot
be claimed as a matter of right and under all circumstances,
but the Courts while deciding such prayers should not adopt a
F hyper-technical approach. Liberal approach should be the
general rule particularly, in cases where the other side can be
compensated with costs. Normally, amendments are allowed
in the pleadings to avoid multiplicity of litigations.
9. Inasmuch as the plaintiff-State of Madhya Pradesh has
G approached this Court invoking the original jurisdiction under
Article 131 of the Constitution of India, the Rules framed by this
Court, i.e., The Supreme Court Rules, 1966 (in short 'the Rules)
have to be applied to the case on hand. Order XXVI speaks
about "Pleadings Generally". Among various rules, we are
H concerned about Rule 8 which reads as under:
STATE OF MADHYA PRADESH v. UNION OF INDIA & 151
ANR. [P. SATHASIVAM, J.]
"The Court may, at any stage of the proceedings, allow A
either party to amend his pleading in such manner and on
such terms as may be just, but only such amendments shall
be made as may be necessary for the purpose of
determining the real question in controversy between the
parties," B
The above provision, which is similar to Order VI Rule 17 of
the Code prescribes that at any stage of the proceedings, the
Court may allow either party to amend his pleadings. However,
it must be established that the proposed amendment is
necessary for_ the purpose of determining the real question in C
controversy between the parties.
10. This Court, while considering Order VI Rule 17 of the
Code, in several judgments has laid down the principles to be
applicable in the case of amendment of plaint which are as D
follows:
(i) Surender Kumar.Sharma v. Makhan Singh, (2009)
10 sec 626, at para 5:
"5. As noted hereinearlier, the prayer for amendment was E
refused by the High Court on two grounds. So far as the
first ground is concerned i.e. the prayer for amendment
was a belated one, we are of the view that even if it was
belated, then also, the question that needs to be decided
is to see whether by allowing the amendment, the real F
controversy between the parties may be resolved. It is well
settled that under Order 6 Rule 17 of the Code of Civil
Procedure, wide powers and unfettered discretion have
been conferred on the court to allow amendment of the
pleadings to a party in such a manner and on such terms G
as it appears to the court just and proper. Even if, such ~n
application for amendment of the plaint was filed belatedly,
such belated amendment cannot be refused if it is found
that for deciding the real controversy between the parties,
it can be allowed on payment of costs. Therefore, in our H
- 152 SUPREME COURT REPORTS [2011] 12 S.C.R.
A view, mere delay and !aches in making the application for
amendment cannot be a ground to refuse the amendment."
(ii) Notth Eastern Railway Administration, Gorakhpur
v. Bhagwan Das (dead) by LRS, (2008) 8 SCC
511, at para16:
B
"16. Insofar as the principles which govern the question
of granting or disallowing amendments under Order 6 Rule
17 CPC (as it stood at the relevant time) are concerned,
these are also well settled. Order 6 Rule 17 CPC
C postulates amendment of pleadings at any stage of the
proceedings. In Pirgonda Hongonda Patil v. Ka/gonda
Shidgonda Patil which still holds the field, it was held that
all amendments ought to be allowed which satisfy the two
conditions: (a) of not working injustice to the other side,
D and (b) of being necessary for the purpose of determining
the real questions in controversy between the parties.
Amendments should be refused only where the other party
cannot be placed in the same position as if the plea.ding
had been originally correct, but the amendment would
E cause him an injury which could not be compensated in
costs."
(iii) Usha Devi v. Rijwan Ahamd and Others, (2008)
3 sec 717, at para 13:
F "13. Mr Bharuka, on the other hand, invited our attention
to another decision of this Court in Ba/dev Singh v.
Manohar Singh. In para 17 of the decision, it was held and
observed as follows: (SCC pp. 504-05)
G "17. Before we part with this order, we may also notice that
proviso to Order 6 Rule 17 CPC ·provides that amendment of
pleadings shall not be allowed when the tria! of the suit has
already commenced. For this reason, we have examined the
records and find that, in fact, the trial has not yet commenced.
H It appears from the records that the parties have yet to file their
STATE OF MADHYA PRADESH v. UNION OF INDIA & 153
ANR. [P. SATHASIVAM, J.]
documentary evidence in the suit. From the record, it also A
'
appears that the suit was not on the verge of conclusion as
· found by the High Court and the trial court. That apart,
commencement of trial as used in proviso to Order 6 Rule 17
in the Code of Civil Procedure must be understood in the
limited sense as meaning the final hearing of the suit, B
examination of witnesses, filing of documents and addressing
of arguments. As noted hereinbefore, parties are yet to file their
documents, we do not find any reason to reject the application
for amendment of the written statement in view o{J:itcwiso to
Order 6 Rule 17 CPC which confers wide power and.unfettered c
discretion on the court to allow an amendment of the written
statement at any stage of the· proceedings."
(iv) Rajesh Kumar Aggarwal and Others v. K. K. Modi
and Others, (2006) 4 SCC 385, at paras 15 & 16: D
"15. The object of the rule is that the courts should try .the
merits of the case that come before them and should,
consequently, allow all amendments that may be necessary
for determining the real question in controversy between
the parties provided it does not cause injustice or prejudice E
to the other side.
16. Order 6 Rule 17 consists of two parts. Whereas the
first part is discretionary (may) and leaves it to the court
to order amendment of pleading. The second part is
imperative (shall) and enjoins the court to allow all
F
amendments which are necessary for the purpose of
determining the real question in controversy between the
parties."
(v) Revajeetu Builders and Developers v. G
Narayanaswamy and Sons and Others, (2009) 10
sec 84, at para 63:
"63. On critically analysing both the English and Indian
cases, some basic principles emerge which ought to be H
154 SUPREME COURT REPORTS [2011] 12 S.C.R.
A taken into consideration while allowing or rejecting the
application for amendment:
(1) whether the amendment sought is imperative for proper
and effective adjudication of the case;
B (2) whether the application for amendment is bona fide or
mala fide;
(3) the amendment should not cause such prejudice to the
other side which cannot be compensated adequately in
c terms of money;
(4) refusing amendment would in fact lead to injustice or
lead to multiple litigation;
(5) whether the proposed amendment constitutionally or
D fundamentally changes the nature and character of the
case; and
(6) as a general rule, the court should decline amendments
if a fresh suit on the amended claims would be barred by
E limitation on the date of application.
These are some of the important factors which may be kept in
mind while dealing with application filed under Order 6 Rule 17.
These are only illustrative and not exhaustive."
F The above principles make it clear that Courts have ample
power to allow the application for amendment of the plaint.
However, it must be satisfied that the same is required in the
interest of justice and for the purpose of determination of real
question in controversy between the parties. We have already
G pointed out the relief prayed for in the plaint. According to the
plaintiff-State of Madhya Pradesh, the Notifications/Orders
dated 02.11.2004 and 04.11.2004 have to b& declared null and
void since the same are unconstitutional and in violation of
Article 14 of the Constitution of India. The other relief, prayed
H for by the plaintiff, is to direct the 1st Defendant-Union of India
STATE OF MADHYA PRADESH v. UNION OF INDIA & 155
ANR. [P. SATHASIVAM, J.]
to dissolve the MPEB in consonance with the orders/directions A
dated 12.04.2001, 04.12.2001 and 23.05.2003 passed by the
Union of India under Section 58(4) of MPR Act. In addition,
the plaintiff-State of M.P. has also prayed for to direct the Union
of India by way of mandatory injunction to perform its
constitutional and statutory duty to lay down proper criteria for B
apportionment of assets, rights and liabilities in accordance
with law and to ensure equitable, just, fair and reasonable
apportionment of assets, rights and liabilities amongst the
successor Boards on the basis of revenue potential so as to
avoid undue hardship and disadvantage to any of the C
successor Boards.
11. Mr. C. S. Vaidyanathan, learned senior counsel for the
plaintiff-State of M.P., by drawing our attention to various
averments in the plaint relating to the purported exercise of
power by the Central Government submitted that the same D
being arbitrary, unjust and unfair had resulted in serious
anomalies in the apportionment of assets and liabilities by the
impugned Notifications/Orders dated 02.11.2004 and
04.11.2004. He also pointed out that the impugned
Notifications/Orders have resulted in an unequal division of E
generating capacity, created a huge gap in demand and supply,
affectirig the power supply and also the finances of the Board
of the plaintiff-State. He further pointed out that Sections 58(3)
and 58(4) of MPR Act provided unguided powers to the Central
Government to determine the apportionment of assets, rights F
and liabilities .between the successor States of M.P. and
Chhattisgarh. According to him, these provisions do not
provide for the Central Government to record reasons in
support of its decision. In the absence of any guidelines, any
decision by the Central Government is arbitrary, unjust, unfair, G
unreasonable, unconstitutional and violative of Article 14 of the
Constitution of India, in particular. In those circumstances,
according to him, the amendment of plaint sought for is
reasonable and acceptable.
H
156 SUPREME COURT REPORTS [2011] 12 S.C.R.
A 12. As against the above claim, Mr Rawal, learned ASG,
appearing for the Union of India submitted that there is no merit
in the claim for amendment of plaint. At any rate, the
amendment sought for is not maintainable at this juncture.
13. Mr. Ravi Shankar Prasad, learned senior counsel for
8 second Defendant-State of Chhattisgarh strongly objected the
proposed amendment both on the ground of delay and !aches
and on merits. Mr. Prasad highlighted that verification of the
Court proceedings would show that the pleadings in the suit are
complete, evidence by way of affidavits has been filed, issues
C for adjudication have been framed, admission/denial of
documents filed in support of the pleadings have taken place
and the suit is now to be finally heard by this Court. He also
contended that the application at this belated stage is not
maintainable.
D
14. It is not in dispute that after co.nplying all the formalities .
even as early as on 16.04.2007, this Court has framed issues
and asrightly pointed out by Mr Prasad, the suit could have
been disposed of by that time, however, the plaintiff has filed
E the present application for amendment of plaint at this belated
stage. It is true that there is no embargo in Order VI Rule 17
of the Code and in Order XXVI Rule 8 of the Rules which alone
govern the procedural aspects. However, the fact remains that
the plaintiff has not assigned any reason for not taking steps
F when the Stat~ had approached this Court under Article 131
by way of a suit even in the year 2004 and waited till 2009.
15. The next objection of the learned counsel for the 2nd
· Defendant is that in the light of the language used in Rule 8 of
Order XXVI of the Rules, the present application for amendment
G substantially alters the nature of /is/claim originally preferred by
the plaintiff-State of M.P. We have already adverted to the
reliefs prayed for in the suit. The main relief relates to scope
and manner of exercise of power by the Central Government
under Sections 58(3) and 58(4) of.the MPR Act qua dissolution
H of the erstwhile MPEB and apportionment of its assets, rights
STATE OF MADHYA PRADESH v. UNION OF INDIA & 157
ANR. [P. SATHASIVAM, J.]
and liabilities between the successor Electricity Boards of the A
reorganized States. The claim was that the purported exercise
of power by the Central Government was arbitrary, unjust and
unfair and had resulted in serious anomalies in apportionment
of assets and liabilities between the two Boards by the
impugned Notification/Orders dated 02.11.2004 and B
04.11.2004. What was challenged was the manner of exercise
of power by the Central Government and not the statutory
provisions in the form of Sections 58(3) and 58(4) of the MPR
Act which vested such powers in the Central Government. As
rightly pointed out by the learned senior counsel for the c
defendants throughout the pendency of the suit since
01.12.2004, no issue whatsoever was ever raised by the
plaintiff as to the validity or constitutionality of these statutory
provisions.
16. It is brought to our notice that MPEB being the D
successor Electricity Board for the reorganized State of M.P.,
a necessary party to the present /is, had filed a separate Writ
Petition being No. 675 of 2004 before this Court under Article
32 of the Constitution of India where identical pleadings and
prayers were made. There is no serious dispute as to the relief E
prayed in the said writ petition. Though the MPEB approached
this Court by way of a writ petition under Article 32, admittedly,
the vires of those sections were never challenged.
Subsequently, the said writ petition being No. 675 of 2004
along with three other writ petitions were disposed of by this F
Court vide judgment dated 13.09.2006. It is not clear and not
explained to this Court why such recourse was not adopted
when the MPEB itself had approached this Court by way of a
writ petition to challenge the vires of those provisions and,
ultimately, this Court dismissed the said writ petition filed by G
the Board. It is to be noted that this Court did not find any
infirmity whatsoever in the manner of exercise of power by the
Central Government under Sections 58(3) and 58(4) of the MPR
Act while upholding the notifications dated 02.11.2004 and
04.11.2004 as being constitutional and not suffering from any H
158 SUPREME COURT REPORTS [2011] 12 S.C.R.
A vice of arbitrariness as claimed by the plaintiff-State of M.P.
and MPEB. It was also pointed out and also not in dispute that
in the said writ petition, the present plaintiff was also a party,
even then the plea of constitutionality was not raised.
B 17. By way of present amendment, the plaintiff-State of
M.P. is seeking to challenge the validity of the Central law in a
proceeding (suit) initiated under Article 131 of the Constitution.
Normally, for questions relating to validity of Central or other
laws, the appropriate forum is the extraordinary writ jurisdiction
under Articles 32 and 226 of the Constitution of India in a writ
C petition and not an original suit filed under Article 131 which
vests exclusive jurisdiction of this Court as regards the dispute
enumerated therein. It is relevant to point out that Article 131A
of the Constitution inserted by (42nd Amendment) Act 1976,
provides for exclusive jurisdiction to this Court in regard to
D questions as to constitutionality of Central laws. The said
Article 131 A viewed as substantially curtailing the power of
judicial review of the writ courts, that is, High Courts under
Article 226 and this Court under Article 32 was omitted vide
Constitution (43rd Amendment) Act, 1977. It follows that when
E the Central laws can be challenged in the State High Courts
as well and also before this Court under Article 32, normally,
no recourse can be permitted to challenge the validity of a
Central law under the exclusive original jurisdiction of this Court
provided under Article 131.
F
18. As regards the absence of guidelines in the provisions
of Sections 58(3) and 58(4) of MPR Act, on behalf of the
defendants it was pointed out that the manner of exercise of
power by the Central Government has been laid down in the
G Sections itself. It is further pointed out that various
correspondences exchanged between the plaintiff and the
defendants placed on record would show that the plaintiff has
never acted under the very same provisions, instead the
plaintiff-State has constituted its own Electricity Board. It is also
H pointed out that the 1st Defendant-Union of India, in its written
STATE OF MADHYA PRADESH v. UNION OF INDIA & 159 .
ANR. [P. SATHASIVAM, J.]
statement highlighted that the Central Government did resolve A
the dispute by passing the impugned Notifications after
considering the claims of the affected parties.
19. Finally, the original plaint proceeds that the exercise
of power by the Central Government by passing the impugned
Notifications dated 02.11.2004 and 04.11.2004 under Sections 8
58(3) and 58(4) of the MPR Act was arbitrary, unjust and unfair
and had resulted in serious anomalies in the apportionment of
assets and liabilities. In our view, after praying for such relief,
if the amendment as sought for by the plaintiff is allowed and
the plaintiff is permitted to challenge the vires of the said C
provisions, then the very basis on which the plaintiff is claiming
its right to apportionment of assets, rights and liabilities of the
undivided Board will cease to be in existence and the entire
suit of the plaintiff will be rendered infructuous. Moreover, it is
settled principle of law that leave to amend will be refused if it D
introduces a totally different, new and inconsistent case or
challenges the fundamental character of the suit.
20. In spite of the above conclusion, we feel that the plaintiff
may be given an opportunity to put forth its stand that the E
. Central Government issued impugned Notifications/Orders
without proper guidelines and affording opportunity to the
parties concerned. It is made clear that we have not either
accepted or concluded the said claim of the plaintiff but in the
interest of justice, plaintiff-State of M.P. is permitted to raise F
such objections at the time of trial by placing acceptable
materials.
21. With the above observation, I.A. No. 4 of 2009 is
disposed of with no order as to costs.
G
8.8.8. Interlocutory Application disposed of.
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