PUNJAB & HARYANA HIGH COURT
G.D.Khosla, Tek Chand and Shamsher Bahadur JJ.
Firm Dittu Ram Eyedan
Versus
Om Press Co.Ltd.
First Appeal First Order No. 81 of 1952,
Decided On : DECEMBER 24, 1959
ABATEMENT - IGNORANCE OF DEATH - SUFFICIENT CAUSE - INTERPRETATION OF O. 22, R. 9, C.P.C. AND ARTS. 171 AND 177 OF THE LIMITATION ACT.
Fact of the Case:
The plaintiffs filed a suit against 119 defendants and the Union of India, claiming rendition of accounts and possession of property. During the pendency of the suit, three defendants and one plaintiff died. The plaintiffs applied to bring the legal representatives of the deceased on the record after the expiry of the limitation period, claiming ignorance of their deaths. The trial court held that the suit had abated and no further proceedings could be taken.
Finding of the Court:
The Full Bench held that ignorance of the death of a defendant is not a sufficient cause for setting aside abatement unless there are good grounds for ignorance not attributable to negligence. The burden lies on the applicant to show that he remained ignorant of the death of the deceased and that his ignorance could not be attributed to absence of negligence or want of sufficient vigilance.
Issues: Whether ignorance of the death of a defendant is a sufficient cause for setting aside abatement when the application to bring the legal representatives of the deceased defendant on the record is made after the expiry of the period of limitation.
Ratio Decidendi: The Court interpreted O. 22, R. 9, C.P.C. and Arts. 171 and 177 of the Limitation Act and held that the applicant must show cogent grounds for excusing delay either by positive evidence or from the circumstances justifying such a conclusion. Mere ignorance of the death of the deceased, without any proof of want of negligence, is not sufficient for revival of the suit or appeal.
Final Decision: The appeal was allowed, the order of the trial court holding that the suit had abated was set aside, and the trial court was directed to proceed with the case after bringing the legal representatives of the deceased parties on the record.
Tek Chand, J.
1. The question which has been referred to the Full Bench is--
"whether ignorance of the death of a defendant is a sufficient cause for setting aside the abatement when the application to bring the legal representatives of he deceased defendant on the record is made after the expiry of the period of limitation".
2. The facts and circumstances under which this question arose may be stated briefly. The plaintiffs who are 27 in number, had instituted a suit against 119 defendants besides the Union of India, who was defendant No. 120, claiming rendition of accounts in respect of income and profit etc. and also possession by way of partition of the property mentioned in the schedule attached to the plaint in respect of 108 1/2 shares out of 262. The plaintiffs and defendants Nos. 2 to 119 (inclusive) were engaged in partnership business of pressing and bailing cotton and wool in the town of Fazilka, District Ferozepur, in the name and style of Om Press Company in the year 1938. The plaintiffs owned 108 1/2 shares out of a total of 262 shares in the concern. On 25th of April, 1938, a notice was received by the partners form the Registrar, Joint Stock Companies, pointing out that the partnership business could not be carried on unless their concern was got registered under the Indian Companies Act, 1913 . Consequent upon the notice, the partners met and dissolved partnership with effect from 4th of July, 1938, but at the same time they decided that with the assets of the dissolved partnership they should form a joint stock company. With this end in view, defendant No. 2 Shri Mukand Lal was entrusted with the work of preparing memorandum and articles of association and for taking steps for forming a limited liability Company. It was alleged that Shri Mukand Lal, without consulting the plaintiffs as to the memorandum can articles of association, got the Company registered in the name of Om Press Company Limited, Fazilka.
3. The plaintiffs felt dissatisfied with the terms of the articles and made an application to the High Court at Lahore seeking the removal of their names from the register of the members of the Company which was allowed, but the plaintiffs prayer that the Company should be directed to pay them back the price of their share in the assets of the Company was rejected. The plaintiffs then applied for the winding up of the Company but the High Court rejected their application on 28th of June, 1944. The plaintiffs then lodged the present suit which was filed in the Civil Court at Fazilka on 5th of February,, 1945.
4. The defendants, including the Company, resisted the plaintiffs suit on several grounds and the trial Court framed seven preliminary issues. Some of these issues were decided against the plaintiffs who were required by the Sub-Judge to amend their plaint. The defendants who were also aggrieved from the decision of the Sub-Judge on certain other preliminary issues, filed a revision against his order in the High Court at Lahore and further proceeding in the case were stayed. After the partition of the country, the revision petition of the defendants was dismissed by the High Court at Simla and Achhru Ram J. by his order dated 6th of October, 1948, sent back the case to the Sub-Judge, Fazilka, for disposal on merits.
5. When the revision was decided by Achhru Ram J., Bagha Ram defendant No. 57 had died on 21st of July, 1947, Prabh Dial defendant No. 55 had died on 8th of December,, 1947, and Harden Mal plaintiff No. 19 had died on 28th of July, 1947. At the time of the disposal of the petition of revision, no one knew of the deaths of the three persons named above.
6. The parties appeared before the trial Court on 18th of November, 1948, and the case was adjourned to 29th of November, 1948, in order to enable the plaintiffs to make an application under O.1, R. 8, Civil Procedure Code, and it was prayed that as there were numerous plaintiffs and defendants, plaintiffs No. 2, 3 and 10 might be al
Hanuman Dass V/s. Pirthvi Nath
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