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Hemali   23 December 2025

Regarding order vi rule 17

the cause involves - P1, P2, D1, D2. P1 is the wholly owned subsidiary of P2, while D1 is the wholly owned subsidiary of D2. D2 had provided financial assistance to P2 in 2017. P2 underwent CIRP under IBC in 2019. During the CIRP proceedings, it was decided that P1 would deliver goods to D1, not under any individual commercial transaction, but merely to set off the claim that was owed by P2 to D2. there was no privity of contract between P1 and D1. now, P2 has filed an amendment application in the court, seeking the deletion of P2 from the array of parties, as they have undergone CIRP and are extinguished from all debts, and have filed an amendment application to turn the suit into a recovery suit, claiming that P1 delivered goods but D1 did not pay them, therefore recovery suit. completely ignoring the fact that this was never a simple recovery suit. theirinitial claims were only declaratory reliefs - praying the court to declare that their liability stood extinguished after the said delivery fo goods. now they are changing their own pleadings by aksing for recovery of money. moreover, it is not only introducing a fresh cause of action within the same suit, but also is time barred (3 years have passed , therefore no recovery suit can exist), and us as the defendants are being prejudiced by such amendment. please advice and comment as to what can be done moving ahead, and what might be the court's observations. moreover, pls give some judgments that can be used , which have similar facts to counter such relief of amendment. 



 4 Replies

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )     23 December 2025

😬 Sounds like a complex case! The plaintiffs (P1/P2) are trying to change the game mid-stream.

 Here's my take: The amendment application seems problematic because: - It's introducing a new cause of action (recovery suit) which wasn't part of the original declaratory reliefs. -

 The original suit wasn't about recovery, and changing it now might be seen as a drastic shift. - Limitation period (3 years) has expired, making the recovery claim time-barred.

- Defendants (D1/D2) are likely to be prejudiced by this amendment. Possible court observations: -

 The court might reject the amendment if it feels the plaintiffs are trying to change the nature of the suit. -

The court will likely consider if the amendment introduces a new cause of action and if it's time-barred. To counter the amendment, you could argue: -

The proposed amendment changes the nature of the suit and introduces a new cause of action. -

The claim is time-barred. - The original arrangement was for set-off, not a commercial transaction between P1 and D1.

 Some relevant judgments to consider: - *Raj Rani vs Prem Adib* (AIR 1949 Bom 215) - On amendment of pleadings and introducing new causes of action. -

*M/s. Modi Spinning & Weaving Mills Co. Ltd. vs Ladha Ram & Co.* (AIR 1977 Delhi 46) - On limitations to amendment of pleadings.

1 Like

T. Kalaiselvan, Advocate (Advocate)     24 December 2025

There's no necessity for you to agree for the proposed amendments initiated by the opposite party at this stage.

You may file a strong objection with the substantial reason supporting your objections.

If the court still allows the amendment petition, you may file a revision petition before high court to set aside the trial court order.

Discuss with your advocate on such strategies before filing your side objection.

1 Like

P. Venu (Advocate)     27 December 2025

There cannot be any meaningful suggestion unless the documents are perused and issues discussed.

Of course the IA could be objected in the usual course.

Dr. J C Vashista (Advocate )     28 December 2025

Show relevant records to a local prudent lawyer for proper anlayses, professional advise and necessary proceeding.

It is impractical to render any opinion / advise without perusal of records.


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