Whether Licensee can amend the suit and seek relief against the Bank in a declaratory suit filed against Licensor?

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Shubham Budhiraja[1]


[1] Advocate, Delhi High Court [ACS, LLB, BCOM(H)], ShubhamBudhiraja02@gmail.com

 

A Hotel granted license in favor of B to run the shops in accordance with License Agreement, A revoked the license after serving revocation notice. B filed suit for seeking declaration that license is irrevocable, A opposed the suit by filling section 8 application stated that there is pre-existing arbitration clause. B realized that A had created few mortgage in favor of Banks. B filed application to (a) amend the prayer clause in suit to declare mortgage as void, (b) to add banks as party to the suit. The High Court allowed the applications. Hon’ble Supreme Court set aside the High Court order and held that if, by permitting plaintiffs to amend the plaint including a prayer clause nature of the suit is likely to be changed; in that case, the Court would not be justified in allowing the amendment. It would also result in misjoinder of causes of action. A cannot be permitted to join any party as a defendant who may not be necessary and / or proper parties at all on the ground that the plaintiffs is the dominus litus[1].


[1] CIVIL APPEAL NOS. 37033750

OF 2022, Supreme Court of India, Judgment dated 12/07/2022

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