Calcutta High Court Dismisses Frivolous Application in Eden Consultancy vs. Kerala State Electronics Case

Court Rules Counterclaims Are Limited to Disputes Between Plaintiffs and Defendants, Not Co-defendants

In a significant ruling, the Calcutta High Court, presided over by Justice Aniruddha Roy, has dismissed an application filed by Eden Consultancy Services Pvt. Ltd., one of the defendants in a commercial suit, seeking permission to file an additional written statement against a counterclaim raised by another defendant, Kerala State Electronics Development Corporation Ltd. The court held that counterclaims under Order VIII Rule 6-A of the Civil Procedure Code, 1908, are restricted to disputes between plaintiffs and defendants and cannot be raised between co-defendants in the same suit.

The case involved a suit filed by Eden Consultancy Services against Kerala State Electronics Development Corporation Ltd. and others, where the third defendant, Kerala State Electronics, had filed a written statement including a counterclaim directed against Eden Consultancy. Eden Consultancy sought leave to file a rejoinder and written statement in response to this counterclaim, arguing that the expression "parties" under Rule 9 of Order VIII CPC should include all parties to the suit, allowing them to respond to the counterclaim.

However, the court rejected this argument, emphasizing that the provisions of the CPC clearly limit counterclaims to disputes between plaintiffs and defendants. Justice Roy applied the doctrine of ejusdem generis to interpret the expression "parties" in Rule 9(2), concluding that it must be read as pertaining only to the plaintiff and defendant, not among co-defendants.

The judgment clarified that allowing such additional written statements would lead to "trial within trial," which is impermissible under Indian law. The court further criticized the application as frivolous and harassive, aimed at delaying the proceedings of the commercial suit, and imposed a cost of Rs. 10,000 on Eden Consultancy to be paid to the West Bengal State Legal Services Authority.

The decision reinforces the procedural boundaries of counterclaims in civil suits, ensuring that the litigation process remains streamlined and focused on the core dispute between the plaintiff and defendant.

Bottom Line:

Counter claims under Order VIII Rule 6-A CPC are restricted to disputes between plaintiffs and defendants and cannot be raised between co-defendants in the same suit.

Statutory provision(s):- Civil Procedure Code, 1908 Order VIII Rules 6-A and 9

Eden Consultancy Services Pvt. Ltd. v. Kerala State Electronics Development Corporation Ltd., (Calcutta) : Law Finder Doc Id # 2811116