2025 Supreme(Ker) 2543
IN THE HIGH COURT OF KERALA AT ERNAKULAM
C.PRATHEEP KUMAR, J.
Joy Mathai @ Joy M Mathai, S/o. Mathai – Appellant
Versus
Bainu M Joseph, S/o. M.V. Joseph – Respondent
RFA No. 53 of 2017
Decided on : 26-08-2025
For the Appellant : SRI.PHILIP T.VARGHESE, SMT.ACHU SUBHA ABRAHAM, SMT.ANN MALU ALBI
SMT.K.R.MONISHA, SMT.K.M.SUNU, SRI.THOMAS T.VARGHESE
For the Respondent: SRI.ANOOP JOSEPH, SMT.K.K.DAJULA, SMT.ZERENE LINDA MITCHEL, SHRI.K.B.ARUNKUMAR, SMT.ASWANI THUVVAKKADAN, SMT.KRISHNA S.
Plaintiff failed to substantiate claims of an agreement for partnership and salary, leading to dismissal of suit.
Headnote:(A) Specific Relief Act, 1963 - Section 70 - Money suits and partnership agreements - The appellate court assesses the evidence to determine liabilities and agreements for realisation of amounts - The suit filed by the plaintiff for recovering Rs.3,74,000/- was based on alleged agreement with the defendant for partnership and salary, which was contested. (Paras 4, 5, 16)
(B) Burden of proof - In civil cases, the onus lies on the claimant to prove their assertions through credible evidence, which the plaintiff failed to establish in this case. (Paras 7, 10)
Facts of the case:
The plaintiff contended the defendant owed him money from a promised partnership as manager of an accountancy school, while the defendant denied engaging with the plaintiff directly, asserting the plaintiff's involvement was solely as an intermediary for another party.
Findings of Court:
The appellate court found substantial evidence suggesting the money transferred was indeed connected to the arrangements made with another party, undermining the plaintiff's claims.
Issues: Was the defendant liable for the claimed amount based on the alleged partnership? Did the circumstances support the plaintiff's assertion of a promise for repayment?
Ratio Decidendi: The court concluded that the trial court misapprehended the evidence, and sufficient proof indicated that the plaintiff's financial dealings were with a third party rather than directly with the defendant.
Result: The appeal is allowed, and the suit is dismissed.
JUDGMENT
C.PRATHEEP KUMAR, J.
The defendant in O.S.943/2011 on the file of the Sub Court, Ernakulam, is the appellant. (For the purpose of convenience, the parties are hereafter referred to as per their rank before the trial court.)
2. The plaintiff filed this suit for realisation of money. According to the plaintiff, while he was an unemployed person, he had discussed his idea to start a business with his close relative Mr.Poly Varghese. During August, 2010, the defendant approached him, claiming that the plaintiff was referred to him by Mr.Poly Varghese, while he was attending a business meeting in UAE. Mr.Poly Varghese informed him that the plaintiff is also intending to start some business in Cochin. On 15.8.2010, the plaintiff met the defendant in a hotel at Palarivattom, Ernakulam and the defendant told the plaintiff that he had taken a building on rent at Palarivattom to start an accountancy school and also that he is in search of energetic young people like the plaintiff to associate with him in his business which he intends to start in Kerala. After discussions, the defendant promised to appoint the plaintiff as the working partner and manager of the accountancy school on a monthly salary of Rs.25,000/-. During the last week of January, 2011, the defendant told the plaintiff that if he is ready and willing to pay a sum of Rs.3,50,000/- to the defendant, he will appoint the plaintiff as a manager of the accountancy school on a monthly salary of Rs.25,000/-. Though initially the plaintiff was reluctant to accept the above proposal made by the defendant, later on agreed to pay a sum of Rs.3,50,000/- to the defendant. On 10.6.2011, the defendant contacted the plaintiff and told that he immediately requires a sum of Rs.5,00,000/- and also that he will refund Rs.1,50,000/- within one month. Accordingly, the plaintiff transferred a sum of Rs.5,00,000/- into the account of the defendant through the plaintiff's bank namely, State Bank of India. From the said amount, the defendant repaid a sum of Rs.1,26,000/- to the plaintiff in instalments. The defendant promised to pay the entire balance amount on the date of opening the Accountancy school on 17.8.2011 which is the 1st day of Malayalam New year. On 16.8.2011, the defendant informed the plaintiff that due to some unforeseen contingencies, the accountancy school could not be started and that the school will be opened by 10th October 2011. He also instructed the plaintiff to look after the works being undertaken in the office at Palarivattom and agreed to contact the plaintiff on 7th October, 2011. Thereafter he learnt that the defendant defaulted huge amount towards arrears of rent and that the defendant had not even contacted the building owner for quite long time. Thereafter, the plaintiff realised that he was cheated by the defendant. It was in the above context that he filed the suit for realising the balance amount of Rs.3,74,000/-.
3. The defendant filed a written statement contending that he had never met the plaintiff in August 2010 as introduced by Mr.Poly Varghese. He also denied having offered business partnership to the plaintiff and the post of manager of the accountancy school. According to the defendant, he, along with three other persons, entered into a partnership deed on 23.1.2011 for running a Manual and Computerized Accountancy and Management Training Institute under the name and style “SPAN Worldwide”. After the execution of the partnership deed, two partners unofficially retired and two others were inducted as partners and a memorandum of understanding (MOU) was executed between the defendant, Poly Varghese Vazhappilly and two others. Mr.Poly Varghese assured to invest 30% of the share capital and accordingly Poly Varghese transferred a sum of Rs.5,00,000/- through his relative, the plaintiff on 13.6.2011 to the bank account of the defendant. On the same day, the defendant issued a security cheque drawn on HDFC bank, Chalakkudy branch in the name of Poly Varg