IN THE HIGH COURT OF MARAS
C Trotter
Kannayalal Bhoya
Versus
Balaram Paramasukdoss
Decided On : 27 April, 1922
Judgment - Negotiable Instruments - Negotiable Instruments Act of 1881, Original Side Rules - Summary
Fact of the Case:
The case involved five suits where orders were made for the defendants to find security for the amount claimed. The trial judge decided, without hearing evidence, that the documents were not negotiable instruments and ordered the security to be repaid to the defendant with costs to be paid by the plaintiff.
Finding of the Court:
The court found that the documents in question were negotiable instruments and should be tried as ordinary suits. The judge's decision to rule the documents as non-negotiable without evidence was deemed wrong.
Issues: The main issue was whether the documents in question were negotiable instruments, and the court also addressed the procedural aspects of the case.
Ratio Decidendi: The court interpreted the Negotiable Instruments Act of 1881 and the Original Side Rules to determine the negotiability of the documents. It emphasized the importance of evidence in making such determinations.
Final Decision: The court allowed all appeals, directed the replacement of the security taken out of court, and ordered that all five cases should be tried together as ordinary suits.
Walter Salis Schwabe, K.C., C.J.
1. In this case the matter comes before us on appeal from an order of Phillips, J. It arose in this way. An issue or issues were framed and he directed that a particular issue should be tried before the trial of the rest of the suit. He tried that issue and he gave a decision upon the hearing of that trial, and he gave it in what is called a judgment. Speaking for myself, I do not see how it could be called anything else. There was an issue directly to be tried; we have got the decision of a Judge upon matters in issue in the action between the parties; and I have tried to find some other mode of expressing what he did and I could find none - he gave his judgment. The English cases are quite clear as far as the distinction between "judgment" and "order" is concerned and the guiding principle is that a decision is a judgment which is given in an action - see Ex-parte Chinery (1884) 12 Q.B.D. 342 and Onslow v. Commissioner of Inland Revenue (1890) 25 Q.B.D. 465. The matter here is to be decided under Clause 15 of the Letters Patent where the right of appeal is from a judgment of the Original Side. There have been a considerable number of cases on that point here and attempts have been made to give an exhaustive definition of the meaning of the word "judgment" in that section, particularly in Tuljaram Rao v. Alagappa Chettiyar (1910) I.L.R. Mad. 1 : 21 M.L.J. 1 (F.B.) and Kulasekhara Naicker v. Jagadambal Ammal (1919) I.L.R. 42 Mad. 352 : 36 M.L.J. 351 the attempted definitions not having been identical. But I think they are all of them wide enough to cover the facts of this case, and I do not propose to attempt to add a further definition to those which have already been given in other cases. The preliminary objection fails.
Coutts Trotter, J.
2. I am of the same opinion. I have never been very clear either in English courts or in these as to the precise differentia between a "judgment" and an "order."
3. On the whole the balance of my mind is to regard this as resulting in something which is properly called a judgment, because it might result in shutting out the defendant from the court altogether.
JUDGEMENT
Walter Schwabe, C.J.
1. In these five, suits orders were made under Order VI-A of the Original Side Rules that the defendants should find security for the amount claimed. There is no appeal from that order. Four of the suits were on documents known as Shah Jog hundies, and the fifth, O.S.S. NO. 356 of 1921,was on another different document, which, on the face of it, purports to be an acknowledgment of indebtedness and a promise to pay interest. Security was furnished and the case was proceeded with. Then, on the application of the defendant, certain issues were set down for trial, one of the issues being whether or not these documents were negotiable instruments. It has been held by the learned Judge who heard this matter, without hearing any evidence and without giving an opportunity which was asked for adducing evidence, that they were not negotiable instruments, and he accordingly ordered all the security to be repaid to the defendant with costs up to date to be paid by the plaintiff and that the action should proceed, as though they had never been lodged under the terms of that order as ordinary suits.
2. As regards four of these documents, in my judgment, the documents in question were negotiable instruments, I think they come directly within the definition in Section 13(2) of the Negotiable Instruments Act of 1881, as amended by the Negotiable Instruments Act of 1914, as being payable in the alternative to one of several payees. But, whether this is right or not, they are, in my judgment still covered by Rule 63A of the Original Side Rules for although those rules are entitled "Procedure on Negotiable Instruments" and Rule 62 refers to suits on negotiable instruments, it is clear from the wording of Rule 63A that it was intended that all documents in the nature of negotiable instrument
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