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2022 (4) TMI 1553 - BOMBAY HIGH COURTSuit for declaration that it is the owner of the suit shares - restraint from exercising any right in respect of the pledged securities - plaintiff discovered that the consideration for the pledge of the suit shares is fraudulent and unlawful - HELD THAT:- The principles which govern the amendment of pleadings are crystallized. The Court is empowered, at any stage of the proceedings, to allow either party to amend the pleadings in such a manner and upon such terms as may be found just. Nay, all such amendments shall be allowed to be made as may be necessary for the purpose of determining the real question in controversy between the parties. The determinative factor is whether the proposed amendment is necessary for determining the real question in controversy between the parties. Undoubtedly, the plaint is premised on the limited nature of the rights of pledgee i.e. either sale the pledged security and appropriate the sale proceeds or bring a suit and retain the pledged security. The plaintiff has assailed the action of defendant no. 1 in transferring the pledged shares in favour of defendant no. 2 and the exercise of rights over the pledged shares by defendant no. 2 as if the general opportunity in those shares has been transferred to defendant no. 2. The case now sought to be set up by the plaintiff is that the very transaction of creation pledge was vitiated by fraud. Support is sought to be drawn from the lodging of the complaint by defendant no. 2 in respect of the said transaction. Firstly, the lodging of the complaint by defendant no. 2 does not seem to be in serious contest. Secondly, the fact remains that amendment is sought at the nascent stage of the trial. Neither the element of delay nor want of due diligence has any role to play. Thus, there is no likelihood of prejudice to the defendants. The defendants will have adequate opportunity to meet the case proposed to be set up by the plaintiff. Application allowed.
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