High Court Sets Aside Plaint Against Petitioner  ‘No Personal Liability’ in Recovery Suit”

In a significant ruling, the High Court of Punjab and Haryana has allowed a revision petition filed by Arun Wadhwa and another, effectively setting aside the plaint against them in a recovery suit filed by M/s Chandan Textiles. The decision, reserved on October 16 and announced on November 24, was presided over by the Hon’ble Mr. Justice Karamjit Singh.

The petitioners had sought the rejection of the plaint filed against them under Order 7 Rule 11 of the Civil Procedure Code (CPC), contending they were wrongly implicated in the business dealings of defendant No.1, a sole proprietorship firm. The original suit by the plaintiff, M/s Chandan Textiles, demanded a recovery of `18,91,005/- and a permanent injunction, alleging the involvement of the petitioners in the business transactions.

In a detailed judgment, Justice Karamjit Singh observed, “In the instant case, the allegations in plaint do not refer to any transaction with the petitioners in their personal capacity.” The Court found that the transactions were directly between the plaintiff and defendant No.1, with no assertions in the plaint of any contract or undertaking by the petitioners to make the disputed payments.

The High Court’s decision underlines a crucial aspect of civil litigation, emphasizing the need for clear cause of action in suits involving multiple defendants. Justice Singh noted, “It being so petitioners are neither necessary nor proper party for the purpose of proper adjudication of the suit.” This observation effectively clears the petitioners of any personal liability in the matter.

Date of Decision: 24.11.2023

Arun Wadhwa and another VS M/s Chandan Textiles and others