SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Article Pause Article
judgment-img

1979 Supreme(Guj) 149

Gujarat High Court
Judgename :A.N.SURTI, S.B.MAJMUDAR, S.H.SHETH
JAYANTILAL PRANLAL THAKORE - Appellant
Versus
SHRIKANT JASVANTLAL THAKKAR - Respondent
First Appeal 33 of 1978
Decided On : 09/13/1979

Advocates Appeared: B.D.SHAH, J.M.THAKAR, R.M.VIN

Headnote:

Civil Procedure Code - Order 1 Rule 10 - Suit against defendants to recover - Service doctrine - Business in partnership -It is that decree which is challenged in this appeal by plaintiff - Principal amount was advanced by plaintiff to father of defendants who was carrying on business in partnership in name and style of Central Sales Corporation - One and another were other partners of that firm - On plaintiff deposited amount of firm - At that time father of defendants and defendants who are his sons were joint - On partition of joint family estate was effected between on one hand and his two sons on other hand - Thereafter Insolvency Petition was filed against Central Sales Corporation and its partners who included father of defendants - On firm and its partners were ad judged insolvents –Held, It has been observed by a Division Bench of that Court that sons pious obligation arises on account of existence of fathers debt and that if debt itself is extinguished very foundation of pious obligation is gone - In that case decree was passed against father alone and decrial debt due by father was sought to be recovered in an execution proceedings from his sons - Secondly creditor had filed no independent suit against his sons - Advocate General has tried to argue that these two facts make all difference in applying to facts of present case principle laid down by Patna High Court - In court opinion basic principle that liability of sons to discharge their fathers prepetition debts in pursuance of their pious obligation can only co-exist with their fathers liability cannot be disputed - Appeal dismissed

S. H. SHETH, J.

( 1 ) THE plaintiff filed the present suit against the defendants to recover a sum of Rs. 27 600 which consisted of the principal amount of Rs. 15 0 and the interest amount of Rs. 12 600 from 23 February 1966 to 23rd February 1975. The principal amount was advanced by the plaintiff to Jaswantlal the father of the defendants who was carrying on business in partnership in the name and style of Central Sales Corporation. One Sadashiv and another Manubhai were the other partners of that firm. On 23rd February 1966 the plaintiff deposited the amount of Rs. 15 0 with the firm. At that time Jaswantlal the father of the defendants and the defendants who are his sons were joint. On 10th October 1967 partition of the joint family estate was effected between Jaswantlal on the one hand and his two sons on the other hand. Thereafter Insolvency Petition No. 15 of 1968 was filed against the Central Sales Corporation and its partners who included Jaswantlal the father of the defendants. On 7th August 1970 the firm and its partners were ad judged insolvents. Official Receiver was appointed to collect the assets of the insolvents. On 24th April 1972 the plaintiff demanded from the Official Receiver the payment of his dues. He received no reply from him. Prior thereto on 5th February 1971 insolvent Jaswantlal had taken out a notice of motion for being discharged. On 27th July 1973 his notice of motion was dismissed. The effect of the order was that he was not discharged. On 23rd February 1973 the plaintiff served notice upon the defendants who are the sons of Jaswantlal and instituted the present suit against them on 7th March 1973.

( 2 ) IN defence the defendants denied their liability in respect of the amount claimed from them. They also pleaded that there was no pious obligation which required them to discharge the debt incurred by their father.

( 3 ) THE learned trial Judge after having raised the necessary issues recorded the finding that the plaintiff has proved the debt. He also recorded the finding that the defendants are liable to pay the amount claimed by the plaintiff only because they are the sons of Jaswantlal. While recording that conclusion he pressed into service the doctrine of pious obligation of the sons to discharge their fathers debt. However he held that in absence of Jaswantlal who had borrowed the suit amount from the plaintiff the suit was not maintainable. He therefore dismissed the suit.

( 4 ) IT is that decree which is challenged in this appeal by the plaintiff.

( 5 ) THIS appeal came up for hearing on 13th November 1978 before a Division Bench of which I and my learned brother Mr. Justice Surti were the members. During the course of the hearing it was found that the appeal raised substantial questions of law which were required to be decided by the Full Bench. Therefore the following three questions were referred to the Full Bench:- (1) Whether the father is a necessary party to the suit which his creditor files only against his sons to recover prepartition debt out of the share in a joint family property which has gone to the sons the debt being the personal debt of the father not tainted by immorality or illegality. (2) Do the sons have a remedy against the father in case decree is passed against them and in favour of the fathers creditor ? (3) If the sons have a remedy against the father will that remedy be prejudiced by the absence of the father in the suit and in absence of any decree passed against him at the instance of his creditor ?

( 6 ) IT is under the aforesaid circumstances that this appeal has come up before this Full Bench for answering the questions referred to it.

( 7 ) BEFORE we examine the rival contentions raised on behalf of the parties it is necessary to note certain facts which are not in dispute and which have a vital bearing on the questions which are required to be answered. Jaswantlal the father of the defendants incurred the present debt as a partner of Central Sales Corporat













Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
whatsapp-icon Back to top