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1962 Supreme(AP) 31

Andhra Pradesh High Court
Judges : P.CHANDRA REDDY, VENKATESAM
Pangoti Mangarao - Appellant
Versus
Chinnadi Kishan Rao - Respondent
Decided On : 02-15-62

A co-promisor who has discharged a joint liability is entitled to contribution from the other co-promisors, even if he has discharged the liability subsequent to the institution of the suit.

Headnote:

CONTRIBUTION - JOINT LIABILITY - DISCHARGE OF JOINT LIABILITY BY ONE CO-PROMISOR - RIGHT TO CONTRIBUTION - CAUSE OF ACTION - SUBSEQUENT PAYMENT - POWER OF COURT TO TAKE COGNIZANCE OF FACTS OCCURRING AFTER INSTITUTION OF SUIT - AMENDMENT OF PLAINT - DISCRETION OF COURT.

Fact of the Case:

Plaintiff filed a suit against the defendants for contribution of their share of the amount of the decree passed against him in a previous suit. The plaintiff and the defendants had entered into an agreement with a third party for a sublease of an abkari contract. The third party filed a suit against the plaintiff and the defendants for recovery of a sum of money, which was decreed against the plaintiff only. The plaintiff paid the decree amount and then filed the present suit for contribution from the defendants.

Finding of the Court:

The court held that the plaintiff had a cause of action against the defendants for contribution, even though he had paid the decree amount after the institution of the suit. The court found that the plaintiff and the defendants had jointly entered into the agreement with the third party and that they were jointly liable for the discharge of the debt. The court also found that the plaintiff had discharged the joint liability by paying the decree amount.

Issues: 1. Whether the plaintiff had a cause of action against the defendants for contribution. 2. Whether the plaintiff could claim contribution, if he had discharged the liability subsequent to the institution of the suit and not earlier.

Ratio Decidendi: 1. The court held that the plaintiff had a cause of action against the defendants for contribution because they were jointly liable for the discharge of the debt and the plaintiff had discharged the joint liability by paying the decree amount. 2. The court held that the plaintiff could claim contribution, even though he had discharged the liability subsequent to the institution of the suit and not earlier, because the court had the power to take cognizance of facts occurring after the institution of the suit and grant relief to the parties on the basis of the altered situation, under exceptional circumstances.

Final Decision: The court dismissed the appeal and upheld the decree of the lower court in favor of the plaintiff.

CHANDRA REDDY, C. J, J.

( 1 ) THIS appeal filed by the 2nd defendant in O. S. No. 11/1 of 1945, Sub Court, Karimnagar, under Clause 15 of the Letters Patent is directed against the judgment of Srinivasachari J. in Appeal No. 495 of 1957.

( 2 ) THE essential facts may be shortly stated as follows: One Pingle Venkatarama Reddy, who had an abkari contract, entered into an agreement with the present plaintiff and defendants 1 to 3 under which a sublease of that contract was obtained by the latter as evidenced by a document marked as Ex. 1. On the basis of this agreement, Venkatarama Reddy filed a suit for the recovery of a sum of Rs. 8658-8-0 with interest thereon as against the plaintiff and the defendants herein. This claim was contested by the present plaintiff as well as the defendants, inter alia, on the defence that the suit agreement was not executed by them. It is unnecessary to follow the career of that litigation except to state that ultimately the erstwhile High Court of Hyderabad, before whom the matter went up in second appeal, held that the agreement was executed by all the four parties i. e. , the present plaintiff and defendants and the plaintiff s claim was enforceable. However, a decree was given only against the present plaintiff and no relief was granted against the other defendants as the plaintiff therein had not carried any appeal against the judgment of the trial court dismissing the suit against them.

( 3 ) THE present plaintiff then laid the action giving rise to this appeal in the court of the Subordinate Judge, Karimnagar, against the defendants for contribution of their share of the amount of the decree passed against him. Originally, the 2nd defendant remained ex parte; the suit was defended only by defendants 1 and 3 on the plea that they were not liable to contribute the responsibility to discharge the debt in question resting only on the plaintiff. A preliminary issue was raised as to whether the plaintiff had a cause of action against the defendants and as to whether the suit was liable to be dismissed in limine. The trial court held in favour of the defendants and rejected the plaint on the ground that there was no cause of action as against the defendants. Having been unsuccessful in obtaining the required relief in the first appeal before the then Sadar Adalat Court, he carried a further appeal to the High Court which set aside the decree by its judgment dated 20/03/1955 and directed an enquiry into the question as to whether the plaintiff had any cause of action. When the matter went back to the trial court as a result of this remand, a written statement was filed by the 2nd defendant urging, inter alia, that, inasmuch as the plaintiff had not paid the amount due under the decree until the date of the institution of a suit, he had no cause of action, which could form the basis of a suit and the suit was therefore liable to be dismissed. Consequent upon this plea, the plaintiff was obliged to file a rejoinder stating that he had paid the decree-holder the amount and as such he had a cause of action against the defendants.

( 4 ) THE trial Court dismissed the suit holding that the suit was not maintainable for the reasons that there was not proof that the defendants had enjoyed the benefits of the agreement referred to above along with the plaintiff, that the plaintiff took the entire liability on his own shoulders, secondly that there being no joint decree against him and defendants 1 and 3 and the suit having been based on the original agreement executed by the plaintiff and defendants executed by the plaintiff and defendants 1 to 3, it was barred by time and lastly that the plaintiff had not established that he had paid that amount in respect of which contribution was sought. The plaintiff, dissatisfied with this decision, presented Appeal No. 495 of 1957 in this Court.

( 5 ) SRINIVASCHARI J. , who heard the appeal, disagreed with these conclusions, accepted the appeal and decreed the suit as p














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