In the case of M/s South Konkan Distilleries & Anr. Vs Prabhakar Gajanan Naik & Ors 2008 SC : it was Held That : It is well settled that the court must be extremely liberal
in granting the prayer for amendment, if the court is of the view that if such
amendment is not allowed, a party, who has prayed for such an amendment, shall
suffer irreparable loss and injury. It is also equally well settled that there
is no absolute rule that in every case where a relief is barred because of
limitation, amendment should not be allowed. It is always open to the court to
allow an amendment if it is of the view that allowing of an amendment
shall really sub-serve the ultimate cause of justice and avoid further
litigation. In L.J.Leach & Co. Ltd. & Anr. Vs. M/s. Jardine Skinner
& Co. [AIR 1957 SC 357], this Court at paragraph 16 of the said decision
observed as follows :-
“It is no doubt true
that courts would, as a rule, decline to allow amendments, if a fresh suit on
the amended claim would be barred by limitation on the date of the application.
But that is a factor to be taken into account in exercise of the discretion as
to whether amendment should be ordered, and does not affect the power of the
court to order it, if that is required in the interest of justice.”
