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        Case ID :

        1978 (11) TMI 161 - HC - Indian Laws

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        Clause 12 leave for impleaded defendants can be granted later, absent mala fide forum choice or serious inconvenience. Leave under Clause 12 of the Letters Patent may be granted when a new defendant is impleaded, even if leave had not been obtained when the original suit ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                          Provisions expressly mentioned in the judgment/order text.

                              Clause 12 leave for impleaded defendants can be granted later, absent mala fide forum choice or serious inconvenience.

                              Leave under Clause 12 of the Letters Patent may be granted when a new defendant is impleaded, even if leave had not been obtained when the original suit was filed, because the suit is treated as a new suit as against that defendant. The absence of leave at inception did not bar consideration of leave at the impleadment stage. The Court found no waiver or submission to jurisdiction since objection was raised at the earliest opportunity. Revocation was unwarranted because the forum choice was not shown to be mala fide, material evidence was available at Madras, and no serious injustice or overwhelming inconvenience to the defendant was established.




                              Issues: Whether leave under Clause 12 of the Letters Patent, once granted to implead a new defendant not residing or carrying on business within the Court's jurisdiction, could be revoked on the ground that the original suit had been instituted without obtaining leave and whether the balance of convenience justified interference.

                              Analysis: A suit as against an added defendant is treated as a new suit so far as that defendant is concerned, and if leave is required under Clause 12, it may be sought when the new defendant is proposed to be added. The absence of leave at the time of the original institution did not bar consideration of leave in relation to the added defendant. The Court also found no waiver or submission to jurisdiction, since objection had been taken at the earliest opportunity. On the merits of revocation, the Court held that the plaintiff had not chosen the forum mala fide and that the material evidence was available at Madras, while no injustice or overwhelming inconvenience to the defendant was shown.

                              Conclusion: Leave under Clause 12 was rightly granted and there was no ground to revoke it.

                              Final Conclusion: The appeal failed, and the order refusing revocation of leave to sue was sustained.

                              Ratio Decidendi: Where a new defendant is sought to be added and the cause of action against that defendant requires leave under Clause 12 of the Letters Patent, the Court may grant such leave at the stage of impleadment, and revocation will not follow unless the forum choice is mala fide or causes serious injustice on a clear balance of convenience.


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                              ActsIncome Tax
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