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1988 Supreme(All) 266

IN THE HIGH COURT OF ALLAHABAD
OM PRAKASH
MUNESH KUMAR - Appellant
Versus
LALLI PRASAD - Respondents
Second Appeal 1654 Of 1984
Decided On : 05/05/1988

Advocates Appeared:
C.K.RAI, SIDHESHVAR PRASAD SINGH

The doctrine of res judicata will apply only when an issue was directly and substantially in issue in the former suit between the same parties or between the parties under whom they or any of them claim litigating under the same title.

Headnote:

RES JUDICATA - DOCTRINE OF RES JUDICATA - S. 11, C. P. C. - APPLICABILITY - JOINT FAMILY BUSINESS - FINDING OF LOWER APPELLATE COURT THAT JUDGMENT IN FORMER SUIT OPERATES AS RES JUDICATA - NOT SUSTAINABLE - APPELLANTS NOT PARTIES TO FORMER SUIT - APPELLANTS NOT CLAIMING THROUGH FATHER WHO WAS DEFENDANT IN FORMER SUIT - APPELLANTS CONTENDING BUSINESS WAS JOINT FAMILY BUSINESS AND NOT PROPRIETARY BUSINESS OF FATHER - APPELLANTS NOT ENTITLED TO BUSINESS THROUGH FATHER BUT ON GROUND THAT BUSINESS WAS STARTED WITH AID OF JOINT FAMILY FUNDS - APPELLANTS FAILING TO PROVE BUSINESS STARTED WITH JOINT FAMILY FUNDS - NO RELIEF PRAYED FOR CAN BE GRANTED TO APPELLANTS.

Fact of the Case:

Appellants, sons of Prem Shanker Agnihotri, filed a suit for declaration against respondents that the business, Krishna Lime Company, Senpura, Varanasi was the joint family business of the appellants and respondent 4 and that respondents 1 and 3 had no concern either with the business or the house No. C 26/10-B-1 from which ejectment of respondent 1 has been sought. Respondent 1 filed a written statement and denied that the Krishna Lime Company was the joint family business of the appellants and respondent 4 and that the house situated on the plot which was acquired from respondent 2, was constructed with the funds of joint family business.

Finding of the Court:

The lower appellate Court dismissed the suit of the appellants, holding that the judgment of the High Court in Civil Suit No. 87 of 1965, Shitla Prasad v. Kundan Lal and others operates as res judicata and, therefore, the appellants cannot reagitate the questions that Krishna Lime Company was not a partnership business and that house in suit was not constructed with partnership funds.

Issues: 1. Whether the finding of the lower appellate Court that the judgment in the former suit operates as res judicata, is sustainable? 2. Whether the appellants can succeed merely on the ground that the finding of the appellate authority that the judgment in the former suit operates as res judicata, is not tenable?

Ratio Decidendi: 1. The doctrine of res judicata will apply only when an issue was directly and substantially in issue in the former suit between the same parties or between the parties under whom they or any of them claim litigating under the same title. 2. The appellants were neither the parties to the said suit nor do they claim in the instant suit through their father, respondent 4 who was defendant 2 in the former suit. 3. The appellants contended that Krishna Lime Company was the joint family business and not a proprietary business of their father, respondent 4, so the appellants did not claim the business through their father but on the ground that the business was started with the aid of the joint family funds and, therefore, they are entitled to the said business and to the property acquired from such joint family business funds. 4. The onus was on the appellants to prove that the business was started with the aid of joint family funds in the year 1952 by the respondent 4. 5. The appellants failed to prove that the business was started with joint family nucleus in the year 1952.

Final Decision: Appeal dismissed with costs.

OM PRAKASH, J.

( 1 ) THIS is a second appeal against the judgment and decree dated 30th March, 1984 passed by learned III Additional District and Sessions Judge, Varanasi.

( 2 ) BRIEF facts are that one Sri Govind Prasad died in the year 1937. Radhika Prasad, Debi Ratan, Parmeshwari Deen, Shitla Prasad Agnihotri (respondent 3) and Prem Shanker Agnihotri (respondent 4) are the sons of Sri Govind Prasad. The appellants are the sons of Sri Prem Shanker Agnihotri (respondent 4 ). The case of the appellants is that Radhika Prasad, Debi Ratan. Parmesh-wari Deen and Shitla Prasad (respondent 3) separated from their father Govind Prasad in his lifetime and after this separation, the joint family of Govind Prasad consisted of himself, his widow and his son Sri Prem Shanker Agnihotri (respondent 4 ). Sri Prem Shanker Agnihotri was minor, when Sri Govind Prasad died. The father of the appellants carried on the job of Munim with a meagre earning for some years and in the year 1952 he started business styled as Krishna Lime Company with the funds of the joint Hindu family and Lallu Prasad (respondent 1) was employed in the business of the joint family in the year 1955. To establish joint family nucleus, the appellants alleged that Sri Govind Prasad served in the Army at the time of Second World War and he was awarded Janggia-ward of Rs. 10/- for which the father of the appellants was nominated and by virtue of nomination done by Sri Govind Prasad the respondent 4 continued to receive the award. Besides this, Sri Govind Prasad started cloth business and carried on agricultural operation which yielded substantial income. It is averred that the savings of the cloth business and the agricultural operation carried on by Sri Govind Prasad and Janggi award regularly received by the father of the appellants constituted the joint family nucleus and with this the joint family business styled as Krishna Lime Company, was started by the father of the appellants. The said business returned good profits and on 7-5-1959, Sri Kundan Lal, respondent 2 entered into an agreement to sell a plot of land with the respondent 4. The said plot was purchased with the funds of joint family business and construction of a house on the said plot was completed in the year 1961. In 1962, a licence was granted to the respondent 1 who was an employee in the joint family concern, by the respondent 4 to use the said house. In the agreement to sell (paper No. 167 A1) execution of which was admitted but not marked as exhibit, the respondent 4 and the respondent 1 are shown as partners of the firm Krishna Lime Company. The appellants contended that the respondent 1 dominated over the respondent 4 and, therefore, in the agreement to sell, the respondent 1 managed to show Krishna Lime Company as a partnership business having two partners, which, in fact, was a joint family business belonging to the joint family of the respondent 4. It is contended that a criminal case was started in the year 1956 under Ss. 120b. 467 and 420, I. P. C. against Debi Prasad and others and the respondent 1 admitted in those proceedings himself to be an employee of Krishna Lime Company.

( 3 ) IT is pleaded that the respondent 3 being in collusion with the respondent 1 filed a Civil Suit No. 87 of 1965 Shitla Prasad Agnihotri v. Kundan Lal and others for specific performance of the contract in which the respondent 4 and the respondent 1 were the defendants 2 and 3 respectively. Sri Kundan Lal who entered into an agreement to sell, was defendant 1 in that suit. The dispute in that suit was ultimately carried to the High Court in Second Appeal and then this Court by the order dated 3-12-1974 held that the respondents 3 and 1 of the instant appeal were entitled to specific performanance of the agreement to self (paper No. 167 A1 ). The appellants contended that they were not the parties to the said civil suit and, therefore, the decision dated 3-12-1974 given by the High Court in second appeal is not bindi














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