- 1 - HC-KAR NC: 2025:KHC:47863 WP No. 20714 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 19TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S VISHWAJITH SHETTY WRIT PETITION NO. 20714 OF 2023 (GM-CPC) BETWEEN: M/S PAC INTERNATIONAL NO.3/B, SRI VARU KRISHNA KRUPA HMT MAIN ROAD NEAR KPTCL, EX CHAIRMAN PUTTANANJAPPA COLONY MATHIKERE, BENGALURU - 560 054 REP BY ITS PROPRIETOR, SMT. LATHA. …PETITIONER (BY SRI YASHWANTH NETHAJI N.T, ADV., FOR SRI K.V. NARASIMHAN, ADV.) AND: M/S SHRI LAKSHMI VENKATARAMANA YAJAMANA INDUSTRIES MAVINAKTTE VAMADAPADAVU BANTWALT TALUK REPRESENTED BY MANAGING PARTNER FIRST PARTNER T. VARADARAJA PAI S/O T. RAGHUNATH PAI VAMADAPADAVU MAVINAKATTE POST BANTWAL TALUK DAKSHINA KANNADA DISTRICT - 574 374 RESPONDENT IS A PARTNERSHIP FIRM. …RESPONDENT (BY SRI VINAYAK KAMATH K, ADV., FOR R-1) THIS WP IS FILED UNDER ARTILCES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH AND SET ASIDE THE ORDER AT ANNX-E DTD 05.07.2023 IN COM OS 191/2021 PASSED BY THE LEARNED ADDL DIST JUDGE AND COMMERCIAL COURT DK MANGALURU ON IA AT ANNX-C. Digitally signed by NANDINI M S Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:47863 WP No. 20714 of 2023 THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S VISHWAJITH SHETTY ORAL ORDER 1. This writ petition under Article 227 of the Constitution of India is filed by the defendant with a prayer to set-aside the order dated 05.07.2023 made on an application filed under Order VI Rule 17 read with Section 151 of CPC in Com. OS. No.191/2021 by the Court of I Additional District Judge and Commercial Court, Dakshina Kannada, Mangaluru. 2. Heard the learned counsel for the parties. 3. Respondent herein had filed Com. OS. No.191/2021 before the jurisdictional Commercial Court at Dakshina Kannada, Mangaluru, against the petitioner herein with a prayer to direct the defendant/petitioner to pay a sum of Rs.1,64,14,685/- with interest at the rate of 18% p. a. from the date of borrowing till realisation. Petitioner, who is the sole defendant in the aforesaid suit had filed a detailed written statement opposing the suit claim. When the suit was at the stage of recording plaintiff's evidence, an application under - 3 - HC-KAR NC: 2025:KHC:47863 WP No. 20714 of 2023 Order VI Rule 17 read with Section 151 of CPC was filed on behalf of the defendant with a prayer to amend the written statement. The said application was opposed by the plaintiff by filing objections and the Trial Court vide the order impugned has rejected the application. Being aggrieved by the same, defendant is before this Court. 4. Learned counsel for the petitioner having reiterated the grounds urged in the petition submits that the proposed amendment does not amount to withdrawing any admission made by the defendant in the original written statement. The proposed amendment does not change the nature of the defence and in the proposed amendment, defendant is principally seeking set-off of the amount credited by the plaintiff to Sri Lakshmi Venkateshwara Timbers. No hardship would be caused to the other side if the proposed amendment is allowed and on the other hand, if it is rejected, the defendant's case is likely to be prejudiced. Accordingly, he prays to allow the petition. 5. Per contra, learned counsel for the respondent has opposed the petition and submits that application is filed - 4 - HC-KAR NC: 2025:KHC:47863 WP No. 20714 of 2023 belatedly after the trial had commenced. In view of the proviso to Order VI Rule 17 of CPC, the Trial Court was justified in rejecting the application. The suit is of the year 2021 and only with an intention to drag on the litigation, repeated applications are being filed. He, accordingly, prays to dismiss the petition. 6. Perusal of the original written statement filed by the petitioner would go to show that in paragraph No.5 of the original written statement, it is contented that petitioner/defendant had supplied raw cashew and plaintiff himself was liable to pay an amount of Rs.2 crores towards supply of raw cashew by the defendant. In the proposed amendment to paragraph No.5, instead of the figure "Rs.2,00,00,000/-", a prayer is made to substitute the same with figures "Rs.1,69,99,862/-with proportionate interest from the date of respective defaults which exceeds sum of Rs.2,20,00,000/- as on 26.03.2018". Further in paragraph No.5, in the second line, figure "Rs.2,00,00,000/-" is sought to be deleted and substituted by the words "amount due by the plaintiff". In my considered view, the aforesaid amendment in paragraph No.5 does not change the nature of defence and on - 5 - HC-KAR NC: 2025:KHC:47863 WP No. 20714 of 2023 the other hand, the proposed amendment is sought to clarify the exact amount that allegedly is due to be paid by the plaintiff towards the supply of raw cashew by the defendant. 7. A further prayer is made in the application to incorporate paragraph Nos.8(a) and 8(b) immediately after paragraph No.8 of the written statement. The proposed paragraph Nos.8(a) and 8(b) reads as follows:- "8(a) "As stated above, as per the account maintained by this Defendant towards various transactions that this Defendant had with the Plaintiff herein, the Plaintiff is in due of principal sum of Rs 1,69,99,862/-(Rupees One Crore Sixty Nine Lakh Ninety Nine Thousand Eight Hundred Sixty Two Only) with proportionate interest from the date of defaults, which amounts to more than Rs. 2,20,00,000/- as on 26-03- 2018. The said amount due by the Plaintiff wherein to this Defendant is liable to be adjusted and set off towards a sum of Rs. 2,20,00,000/- transferred by the Plaintiff herein to the account of proprietary concern of the brother of this Defendant namely, M/s Sri Lakshmi Venkateshwara Timbers on 26-03-2018. Since, the transaction in respect of the High Sea Sale Agreement executed with M/s Sri Lakshmi Venkateshwara Timbers has also been carried out by this Defendant, the Defendant herein is entitled to seek adjustments towards the dues of the Plaintiff to this Defendant. Hence, in - 6 - HC-KAR NC: 2025:KHC:47863 WP No. 20714 of 2023 addition to seeking dismissal of the plaint on various grounds urged in the written statement, without prejudice to the contentions taken, the Defendant is constrained to seek relief of set off of a sum of Rs. 2,20,00,000/- credited by the Plaintiff herein to the account of M/s Sri Lakshmi Venkateshwara Timbers towards the amount payable by the Plaintiff to this Defendant." 8(b) "No court fee is payable on relief of set off." 8. From a reading of the aforesaid proposed paragraphs, it is found that the petitioner is seeking set-off of alleged payments made by the plaintiff in the present suit to the account of M/s. Sri Lakshmi Venkateswara Timbers, who is not even a party to the present suit. In the proposed amendment, a further relief is sought to amend paragraph No.11 of the written statement and to incorporate the words "the Honourable Court may be pleased to set off the sum of Rs.2,20,00,000/- credited by the plaintiff to the account of M/s. Sri Lakshmi Venkateshwara Timbers on 26.03.2018 towards the amount owned by the plaintiff to the defendant herein." In my considered opinion, the proposed amendment insofar as it relates to incorporating paragraph Nos.8(a) and 8(b) and also to amend the relief column after paragraph No.11 cannot be permitted, as the petitioner herein is seeking for a set-off of - 7 - HC-KAR NC: 2025:KHC:47863 WP No. 20714 of 2023 amount paid by the plaintiff to the account of a third party, who is not even a party defendant in the present suit. Therefore, to the said extent, prayer made in the application is liable to be rejected. Accordingly, the following order:- 9. The writ petition is partly allowed. The impugned order dated 05.07.2023 made on the application filed under Order VI Rule 17 read with Section 151 of CPC in Com. OS. No.191/2021 by the Court of I Additional District Judge and Commercial Court, Dakshina Kannada, Mangaluru, is set-aside insofar as it relates to rejecting the application to amend paragraph No.5 of the written statement and is confirmed insofar as it relates to rejecting the application in respect of the other proposed amendments sought for in the application. 10. Since the suit is of the year 2021, the Trial Court is requested to expedite the trial and dispose off the same on merits as expeditiously as possible but not later than a period of one year from the date of receipt of a certified copy of this order. - 8 - HC-KAR NC: 2025:KHC:47863 WP No. 20714 of 2023 11. In view of the disposal of the main petition, pending interlocutory application if any, does not survive for consideration. Accordingly, the same is disposed off. Sd/- (S VISHWAJITH SHETTY) JUDGE DN List No.: 1 Sl No.: 0