Karsan v Raghavjee (Civil Appeal No. 17 of 1942)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The Court of Appeal held that the amendment to the plaint did not substitute a new cause of action but merely added an alternative claim. The Judge's discretion to allow the amendment was properly exercised under Order 6 Rule 18 of the Civil Procedure Code, which gives wide powers to permit amendments where the real substantial question can be raised between the parties and multiplicity of proceedings avoided. No injustice resulted from allowing the amendment. However, the Court varied the costs order to require the plaintiff to pay forthwith the defendant's costs thrown away by the amendment, with a stay until payment.
Outcome
Appeal allowed on costs only; amendment to plaint upheld but costs order varied in favour of defendant
Facts
The plaintiff sued the defendant for money lent. The original plaint alleged that the defendant arranged a loan and represented he would obtain a Power of Attorney from Mawji Mandan to execute a charge. The defendant signed the money-lending contract for Sh. 8,000 per pro Mawji Mandan under a general Power of Attorney. The plaintiff applied to amend the plaint to add an alternative claim alleging that the defendant had authority from Mawji Mandan to execute the contract and undertake repayment, but that Mawji Mandan denied such authority. The defendant appealed against the order allowing the amendment, arguing it introduced a new cause of action, was made in bad faith after unexplained delay, and deprived him of a limitation defence. The trial judge allowed the amendment with costs thrown away to be the defendant's in any event.
Issues
- Whether the amendment to the plaint permitted the substitution of a new cause of action.
- Whether the learned Judge erred in exercising his discretion to allow the amendment.
- Whether the amendment deprived the defendant of a defence of limitation.
- Whether the terms imposed as to costs were just or should be varied.
Orders
- Appeal allowed only on the question of costs.
- Order of Judge varied by substituting for the order that costs thrown away be the defendant's in any event an order that the plaintiff do pay forthwith the defendant's costs thrown away by the amendment, with a stay until payment.
- The plaintiff to pay to the defendant one-half of the costs of the appeal and of his application for leave to appeal.
Rules and key headnotes
Legislation cited (1)
- Civil Procedure Code Order 6 Rule 18
Cases cited (6)
- Kintz v Spence (36 Ch D 774)
- The Alert (72 LT 124)
- Tildesley v Harper (10 Ch D 396)
- Evans v Bartlam [1937] AC 473
- National Provincial Bank v Gaunt [1942] 2 All ER 112
- Derry v Peek (14 AC 337)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.