The Delhi High Court examined a petition filed under Article 227 of the Constitution of India challenging a trial court order. The dispute arose in a recovery suit where the defendant denied appointing the plaintiff as an insurance consultant. Later, the defendant realised that the denial resulted from confusion regarding the company’s earlier name. The defendant then sought amendment of the written statement.
The plaintiff opposed the amendment and also filed an application under Section 340 CrPC (Section 379 BNSS) alleging perjury.
The High Court examined whether the amendment should be allowed and whether such allegations should affect the amendment request.
The following paragraphs explain the reasoning that led to the final decision.
“The defendant then realized its mistake because the earlier name of the defendant-company was ‘M/s Hindustan Pipe Udyog Limited’ and ‘Hindustan Synthetic Fibres’ was a division of ‘Hindustan Pipe Udyog Limited’. In the year 1992 the name ‘Hindustan Pipe Udyog Limited’ was changed to ‘Jindal Polysters and Steel Limited’, which name was again changed to ‘Jindal Polysters Limited’ in the year 1995.”
“The explanation given for the amendment was that there was a communication gap between the defendant and his earlier counsel and that Mr. Sumeet Maheshwari, who joined the defendant as Company Secretary in the year 1994 was not very much acquainted with the fact that the earlier name of the defendant company was ‘Hindustan Pipe Udyog Limited’.”
“After hearing both the learned counsel for the parties, I am of the view that so far as the application under Section 340 Cr.P.C. is concerned, it is established law that this has to be dealt with normally at the time of final disposal of the matter and after the trial court judge forms an opinion that an offence of perjury had been intentionally committed and that it was expedient in the interest of justice to lodge a complaint.”
“I find force in the contentions of the learned counsel for the petitioner-defendant that there was change of names repeatedly about the defendant company and the company could not run away with any averment about its denial of the appointment of plaintiff.”
Decision
The Delhi High Court allowed the petition and set aside the trial court’s order.
The Court permitted the amendment of the written statement under Order VI Rule 17 CPC. It allowed the amendment subject to costs of ₹10,000.
The Court also clarified that allegations under Section 340 CrPC (Section 379 BNSS) should be considered at the appropriate stage during the trial.
Citation :2005:DHC:3716
Other Sources :
Index of Perjury proceedings is here.
Key Contributor :
Mrs. Suprajaa Rajan B.Com., LL.B., LL.M.
+91-9606345150
