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1935 Supreme(Cal) 232

CALCUTTA HIGH COURT
Derbyshire, C.J, Costello, J.
Maharaja Bahadur Guru Mohadev Asram Prosad Sahi of Hathwa - Appellant
Versus
Hastings Evelyn Beal - Respondent
Decided On : 16-08-1935

The main legal point established in the judgment is the interpretation of the defendant's residence and its relevance to the jurisdiction of the Court.

Headnote:

Jurisdiction - Breach of Contract - Letters Patent of 1865 - Section 21 of the Code of Civil Procedure - Defendant's residence and jurisdiction of the Court

Fact of the Case:

The plaintiff, a retired Indian Civil Service officer, was engaged as an agent by the defendant at Hathwa. The defendant terminated the contract, leading to a dispute over jurisdiction and damages.

Finding of the Court:

The Court found that it had jurisdiction to entertain the suit and assessed damages at Rs. 16,200.

Issues: The main issues were the jurisdiction of the Court and the assessment of damages.

Ratio Decidendi: The Court determined that the defendant's residence in Calcutta fell within the jurisdiction of the Court, as per the Letters Patent of 1865. The Court also held that Section 21 of the Code of Civil Procedure did not apply to the case.

Final Decision: The appeal was dismissed, and the respondent was awarded 9-10ths of the costs of the appeal.

JUDGMENT

Derbyshire, C.J. - This is an appeal from the judgment and decree of Mr. Justice Panckridge dated June 5, 1935, in which he decreed that the plaintiff-respondent is entitled to a sum of Rs. 16,200 from the defendant as damages for breach of contract. The plaintiff was formerly in the Indian Civil Service. He retired from that service some years ago. The defendant is a gentleman of considerable means who has a large estate at Hathwa in the Province of Bihar. He has residence at Hathwa. He has also houses at Sewan, Chapra, Patna, Benares, Calcutta and Kurseong. On May 4, 1934, the plaintiff had an interview with the defendant at Hathwa with the result that the defendant engaged the plaintiff as his agent. The engagement is set out in the letter printed at page 5 of the paper-book and is headed

The Palace Hathwa May 4, 1934. To H. E. Beal, Esq.,

Dear Sir,

With reference to the interview you had with me to-day I have much pleasure in appointing you in place of Mr. E. Abbott who has been retired with effect from the 5th instant.' You will draw a salary of Rs. 1,500 fifteen hundred per month plus Rs. 250 per month as sumptuary allowance with free furnished quarters and lighting, fans etc. You will be entitled to all the allowances at the same rates as Mr. Abbott. This appointment will terminate on March 5, 1935. At the end of this period if you satisfy me with your work you will be confirmed and the appointment made permanent.

2. That was signed by the' defendant. Pursuant to that agreement the plaintiff entered upon his duties and acted as agent for the defendant at Hathwa. On June 7, 1934, the plaintiff received this letter addressed from Hathwa

Dear Mr. Beal,

I have been instructed by the Maharaja Bahadur of Hathwa to inform you that your services are no longer required by him. Your probationary appointment was made on your assuarances that you are in intimate touch with the Local Government and that of Government of India. You also did not disclose to him your financial position. Owing to these and other reasons Maharaja Bahadur is pleased to dispense with your services; He is, however, pleased to give you a sum of rupees five thousand plus 1st class fare to Calcutta. Please note, that the Raj car that is being used by you and the Raj peons will be withdrawn to-morrow. "

                                    Yours truly,                        Birendra Nath Chakrabarty.                                         Advocate.

3. It will be apparent, therefore, that the contract of service was made at Hathwa and in fact it was performed, as long as it lasted, at Hathwa. The breach of contract occurred at Hathwa. After that letter the plaintiff came to Calcutta and consulted his Solicitors. The Solicitor Messrs, Sanderson and Morgans wrote the defendant a letter at page 38 of the paper-book asking whether Mr. Chakrabarty had the authority to write the letter he did and to dismiss the plaintiff and also stating that there was no justification of the course the defendant had taken. There was a reply to that letter on June 15, by Mr. Mitra who was the Private Secretary of the defendant. On July 3, Messrs. Sanderson and Morgans wrote to Mr. Chakrabarty setting out that the agreement should not have been terminated and stating that his client had lost the sum of Rs. 25,000 and ending in the circumstances:

We are instructed to demand payment of the said sum of Rs. 23,500, failing payment of which our client regrets he will have no alternative but to file a suit in the Calcutta High Court.

4. A reply to that letter was not received until July 26, more than 3 weeks later, and Mr. Chakrabarty wrote back to Messrs. Sanderson & Morgans :

With reference to your letter dated July 3,1934, I have been instructed by the Maharaja Bahadur of Hathwa to inform you that he is unable to entertain the claim of your client, as the contract of service is vitiated by misrepresentation and suppression of material facts.

As the Maharaja was out of head-quarters there is

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