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1956 Supreme(Cal) 169

HIGH COURT OF CALCUTTA
P. B. Mukharji, Bachawat
DULALDAS MULLICK - Appellant
Versus
GANESH DAS DAMANI - Respondent
A. F. O. D.  1  Of  1953
Decided On : NOVEMBER 30, 1956

Advocates Appeared:
HAZARIKA, S.CHATTERJEE

The sale of goodwill of an ordinary dealer's business as a going concern includes the right to occupy the shop room from where the business is carried on.

Headnote:

GOODWILL - SALE OF BUSINESS - MONTHLY TENANCY RIGHT - WHETHER INCLUDED - FACTS AND CIRCUMSTANCES - INTERPRETATION OF SALE PROCLAMATION AND ORDERS - LEGAL PRINCIPLES.

Fact of the Case:

Plaintiff, a monthly tenant, sued for possession of a shop room and other incidental reliefs, alleging that the defendant wrongfully took possession of the shop room after purchasing the goodwill of the plaintiff's business in an execution sale.

Finding of the Court:

The court held that the sale of goodwill in this case included the plaintiff's monthly tenancy right in the shop room, as the goodwill of an ordinary dealer's business necessarily includes the right to occupy the shop room from where the business is carried on.

Issues: Whether the sale of goodwill in this case included the plaintiff's monthly tenancy right in the shop room.

Ratio Decidendi: The court relied on the following legal principles: * Goodwill is a complex of personal reputation, local reputation, and objective reputation of the products of the business. * In the case of an ordinary trader or dealer, the attribute of locality is the most important consideration in determining goodwill. * Goodwill cannot subsist by itself and must be attached to a business. * The sale of goodwill as a going concern includes the right to occupy the shop room from where the business is carried on. Applying these principles to the facts of the case, the court found that the goodwill of the plaintiff's business included his monthly tenancy right in the shop room, as the business could not be carried on except from that shop and locality was a significant part of the goodwill sold.

Final Decision: The court dismissed the plaintiff's appeal and upheld the trial court's decision.

P. B. MUKHAKJI, J.

( 1 ) THIS is an appeal from the judgment of the learned trial Judge dismissing the plaintiff's suit with costs.

( 2 ) THE suit was instituted by the plaintiff on the 17th February, 1950, for the delivery of possession of a shop room in premises No. 46/a, Netaji Subhas Road, Calcutta, and for seeking other incidental reliefs. The plaintiff's case was that he was carrying on business as a dealer in paints and varnish at the said shop room as a monthly tenant paying rent at the rate of Rs. 144-6 per month under the name and style of D. Mullick and Company. He was indebted to a person called Gopal Lal Daga who instituted a suit being Suit No. 610 of IMS against the present plaintiff under Order 37, Civil P. C. , for the sum of Rs. 3735-9-9 on certain hundis. That suit was decreed with costs on 7-5-1948. The decree-holder Daga of that case started execution proceedings and in course of such execution proceedings the furniture, stock-in-trade and goodwill of the business of D. Mullick and Company of the plaintiff were sold as a going concern and were purchased by the defendant Ganesh Das Damani on 19-2-1949 for the sum of Rs. 8,100. The sale was held by the Sheriff. It is the plaintiff's allegation in the plaint that on 22-2-1949, Damani wrongfully put his padlocks on the doors of the said shop room and has continued to be in possession of such room since then. It is also his allegation in the plaint that the second defendant Usha Bolt and Nut Company is now in possession of the said shop room and is carrying on business there. In fact the second defendant Usha Bolt and Nut Company purchased on 23-6-1949 for valuable consideration the business of D. Mullick and Company with its goodwill stock-in-trade and furniture as a going concern.

( 3 ) THE learned trial Judge after hearing the parties and their evidence came to the conclusion that the sale in this case included the goodwill of the business of the plaintiff in the said shop room as a going concern, and that by sale of such goodwill the plaintiff also lost his monthly tenancy rights therein.

( 4 ) THE essential point for determination in this appeal is whether the goodwill in the present case includes the right of the plaintiff as a monthly tenant to occupy that said shop room. Before a decision can be reached on that point the primary enquiry must be what in fact was sold by the Sheriff. In other words was the "goodwill" in fact sold? For that purpose the relevant sale proclamation and orders of sale are material.

( 5 ) THE relevant sale proclamation dated 1-2-1949, settled on notice to the attorneys on record which is directed to be filed herewith with the records of this appeal shows what was sold. The material terms of the Sheriff's sale proclamation are:"to be peremptorily sold pursuant to the order of the High Court of Judicature at Fort William in Bengal in its Ordinary Original Civil Jurisdiction dated the tenth day of December one thousand nine hundred and forty eight made in execution of the decree dated 7-5-1948 and pursuant to the orders dated respectively 10-8-1948 and 9-9-194s made in Suit No. 610 of 1948 by the She-riff of Calcutta at No. 46/a, Netaji Subhas Road in the town of Calcutta by public auction on Saturday. 19-2-1949 at the hour of twelve o'clock noon the goodwill of the business of D. Mullick and Co. , of No. 46/a, Netaji Subhas Road and the right, title and interest, of the defendant Dulal Das Mullick the sole proprietor of D. Mullick and Co. , in the following moveable properties". Then the proclamation recited the items of the moveable properties. At the end of these recitals are stated the words "in one Jot as a going concern. "

( 6 ) THE proclamation expressly' states in clearest terms that what was being sold was the goodwill of the business of D. Mullick and Com- pany of No. 46/a, Netaji Subhas Road as a going concern in one lot.

( 7 ) THE order of Mr. Justice Majumdar of 9-9-1948 also says -"it is ordered that the Sherif










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