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Rajul Manoj Shah alias Rajeshwari Rasiklal Sheth vs. Kiranbhai Shakrabhai Patel

Not available · 2025 INSC 1109Decided 12 Sept 2025
Not available
Justice Pamidighantam Sri Narasimha · Justice Joymalya Bagchi

Background

In 2012, the appellant filed a civil suit in Ahmedabad seeking a declaration that her sister-in-law (co-owner of a jointly inherited bungalow) had no right to sell an undivided share of the property to a buyer (defendant no. 2), and sought to have that 2011 agreement to sell declared void. The sister-in-law died during the suit, and years later (after issues had already been framed, and nearly nine years after the suit was filed) the buyer applied to amend his written statement and add a counterclaim seeking specific performance of the very agreement to sell. The trial court refused to allow this late counterclaim, but the Gujarat High Court reversed that refusal and allowed it.

Decision Breakdown

The Supreme Court set aside the High Court's order and restored the trial court's decision refusing the counterclaim. It held that while a counterclaim can, in principle, be filed even after the written statement so long as the underlying cause of action itself is not time-barred, courts retain discretion to refuse a counterclaim brought with unreasonable delay, especially once issues have been framed. The Court laid down an illustrative (non-exhaustive) list of factors: delay, limitation, reasons for delay, diligence, similarity of cause of action to the main suit, cost of fresh litigation, injustice, and prejudice to the opposite side, to guide this discretion, and held that a counterclaim should never be entertained after issues are framed. It also noted the buyer's counterclaim (for specific performance) was a fundamentally different kind of claim from the plaintiff's declaratory suit, and that the buyer took no action for years even after clear notice his purchase was being challenged.

Lesson Learnt

A defendant who wants to bring their own claim (a counterclaim) in someone else's lawsuit must act promptly. Courts can and will refuse a counterclaim filed with long, unexplained delay, particularly once the trial has progressed to the stage where issues are framed.

Official source (sci.gov.in)View Judgment (PDF)

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