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

1914 Supreme(Mad) 312

IN THE HIGH COURT OF MARAS
Napier
Muthukaruppa Mudali And Ors.
Versus
Pi. Mu. Kathappudayan And Ors.
Decided On : 11 August, 1914

The main legal point established in the judgment is the requirement of a desire or request from the promisor for an act to be considered as a valid consideration, and the distinction between a mere recommendation and a request in determining the nature of consideration.

Headnote:

CONSIDERATION - Indian Contract Act - Section 127, Section 2 - Summary: The court discussed the definition of consideration under Section 127 of the Indian Contract Act and its interpretation in relation to the case. It highlighted the requirement of a desire or request from the promisor for an act to be considered as a valid consideration, and emphasized the distinction between a mere recommendation and a request in determining the nature of consideration.

Fact of the Case:

The case involved arguments on the remand order of the High Court, the supposed compromise, and the question of consideration for a contract of guarantee.

Finding of the Court:

The court found that the remand order was specific to the question of consideration for the contract, rejected the supposed compromise, and held that the advances made did not constitute valid consideration.

Issues: The issues included the scope of the remand order, the validity of the supposed compromise, and the determination of consideration for the contract.

Ratio Decidendi: The court emphasized the requirement of a desire or request from the promisor for an act to be considered as a valid consideration, and distinguished between a mere recommendation and a request in determining the nature of consideration.

Final Decision: The second appeal was dismissed with no order as to costs.

JUDGMENT

Napier, J.

1. Three points are argued in this second appeal. The first is that under the remand order of the High Court the District Judge should have returned findings on the other issues of fact in the case. We are clear that the order was only on the question whether the contract of guarantee was supported by consideration on which he has returned a finding. The second, that the District Judge should have passed a decree in the terms of the supposed compromise. We accept his decision that no compromise binding on all the parties was effected, The third is, that the District Judge has erred in law in holding that there was no consideration. It is argued that the advances made to other persons on the recommendation of the 1st defendant were good past consideration for the contract. Section 127 of the Indian Contract Act says that anything done, for the benefit of the principal debtor may be a sufficient consideration to the surety. Consideration is defined in Section 2. " When at the desire of the promisor, the promisee...has done...something, such act...is called a consideration." I extract only that part of the definition relied on by the appellants. In our opinion, the facts of this case do not go so far as these words require. We are not referred to any words expressing the desire of the 1st defendant that advances should be given. In Sindha Shri Ganpatsing v. Abraham alias Vajir (1895) I.L.R. 20 B 755 the words are interpreted to mean " Express or implied request or desire". The learned vakil for the appellants was unable to refer us to any case in which a recommendation was held to be within the words of the section nor is any support for the proposition to be found in the commentaries of Sir F. Pollock or Sir H. H. Shephard." In a case reported in Juggot Indur Narain Roy Choudhry v. Nistarinee Dassee (1876) 24 W.R. (Civil Rulings) 445 decided subsequent to the passing of the Indian Contract Act, but, it may be arising before that date, there is a dictum that a mere recommendation by one party to another to lend money to a third party does not render the first party liable to repay the loan. This of course goes no further than that there is no promise but it is an indication of the light in which recommendations are regarded.

2. We may add that there can be no doubt that according to English law a recommendation alone cannot be valuable consideration. Vide Halsburys Laws of England, Volume 7, paragraphs 793 and 794--consideration where is " the promise does some act (in India it would include has done some act) from which a third person benefits and which he would not have done but for the promise." There is nothing in this, case which comes within this definition.

3. The result will be that the second appeal is dismissed. There will be no order as to costs.

Sadasiva Aiyar, J.

4. Entirely concur in the judgment just now pronounced by my learned brother, and if I add a few words of my own, it is put of respect for the strenuous arguments of Mr. T. Ranga Chariar on the question of law which he has argued.

5. The question as to what kind of. past request on behalf of the promisor followed by what kind of act on the part of the promisee forms good consideration for the subsequent agreement by the promisor is oftentimes a very difficult question. Loose expressions in the wilderness pf English cases are likely to be of very little use in deciding this question in any particular case arising in an Indian Court. Section 2, Clause (d) of the Indian Contract Act says "when, at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing, something, such act or abstinence or promise is called a consideration for the promises" The above definition is couched in the widest possible words, but it has been always held that the "something" which the promisee has done cannot be a merely illusory thing. For instance, if B asks h




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
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top