Disposal of suit

Application of plaintiff-Bank seeking amendment in plaint, in a pending suit for recovery, for incorporating settlement agreement between the parties was dismissed by the Banking Court and in the said order, Banking Court disposed of the suit on the ground that the suit had become infructuous

Validity

Impugned order had stated that the settlement agreement did not have any nexus with the suit and that the settlement agreement did not make mention of the suit, however, despite said finding, the Banking Court disposed of the suit on the ground that the parties had settled the suit without permission of the Court, which was a contradiction in terms

Pending suit had to be decided on its merits and no concept of disposing of the suit in the manner done in the impugned order existed, and therefore, the Banking Court could not have disposed of the suit in the said manner

Application of the plaintiff-Bank for incorporating amendment to the plaint, however, was not tenable as there existed no cause for seeking said amendment and plaintiff-Bank could certainly file a fresh suit in respect of any cause of action under the settlement agreement

Impugned order was set aside to the extent of the disposal of the suit and the dismissal of application under O. VI, R. 17, C.P.C. for amendment of plaint, was sustained

Appeal was partly allowed, accordingly.