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1966 Supreme(All) 34

Allahbad High Court
B.DAYAL,GANGESHWARPRASAD
Radhey Shyam - Appellant
Versus
Beni Ram Mool Chand - Respondent
Decided On : 02/08/1966

Advocates:
S.N. Kacker, for Appellant; S.C. Khare, for Respondent.

Headnote:

JURISDICTION - RES JUDICATA - SECTION 11, C. P. C. - LIMITATION - SECTION 14, LIMITATION ACT - GOOD FAITH - SECTION 69, INDIAN PARTNERSHIP ACT - DISSOLUTION OF FIRM - RECOVERY OF ASSETS - HEADNOTE : Where a plaintiff files a suit in a Court which does not have jurisdiction and the suit is dismissed, the plaintiff cannot be barred from filing a fresh suit in a Court having jurisdiction on the ground of res judicata. The decision of the Court which did not have jurisdiction is not binding on the Court having jurisdiction. The plaintiff is entitled to the benefit of Section 14 of the Limitation Act if he has prosecuted the previous suit in good faith. A suit for realizing the assets of a dissolved firm is not barred by Section 69 of the Indian Partnership Act.

Fact of the Case:

The plaintiff filed a suit for the recovery of Rs. 1,527-8-0 from the defendant, alleging that the defendant had purchased glass phials worth Rs. 2,700 from the plaintiff's firm and had given a cheque for the said amount, but the cheque was dishonoured. The defendant paid only Rs. 1,506 to the plaintiff. The plaintiff filed a suit in the Court of the Munsif at Aligarh, alleging that the transaction had taken place at Harduaganj and the payment was also agreed to be made at Harduaganj. The Munsif and the lower appellate Court dismissed the suit, holding that the Court at Aligarh had no jurisdiction to entertain the suit. The plaintiff then filed a fresh suit in the Court of the Munsif at Kanauj, which decreed the suit.

Finding of the Court:

The Court held that the decision of the Aligarh Court was not binding on the Kanauj Court, as the Aligarh Court did not have jurisdiction to entertain the suit. The Court also held that the plaintiff had prosecuted the Aligarh suit in good faith and was entitled to the benefit of Section 14 of the Limitation Act. The Court further held that the suit was not barred by Section 69 of the Indian Partnership Act, as the plaintiff's firm had been dissolved before the suit and the amount claimed by the plaintiff was assigned to him for realization.

Issues: 1. Whether the decision of the Aligarh Court was binding on the Kanauj Court. 2. Whether the plaintiff had prosecuted the Aligarh suit in good faith. 3. Whether the suit was barred by Section 14 of the Limitation Act. 4. Whether the suit was barred by Section 69 of the Indian Partnership Act.

Ratio Decidendi: 1. The decision of the Aligarh Court was not binding on the Kanauj Court, as the Aligarh Court did not have jurisdiction to entertain the suit. 2. The plaintiff had prosecuted the Aligarh suit in good faith, as he had made a true and honest statement in the plaint, even though he was not able to prove it. 3. The suit was not barred by Section 14 of the Limitation Act, as the plaintiff had prosecuted the Aligarh suit in good faith and the Kanauj Court was unable to entertain the suit on account of defect of jurisdiction. 4. The suit was not barred by Section 69 of the Indian Partnership Act, as the plaintiff's firm had been dissolved before the suit and the amount claimed by the plaintiff was assigned to him for realization.

Final Decision: The plaintiff's appeal was allowed, the decree of the lower appellate Court was set aside and that of the trial Court was restored with costs throughout.

Judgement

B. DAYAL, J. :- This is a plaintiff's second appeal which has been referred to this Division Bench by a learned Single Judge of this Court as an important question of law was involved therein.

2. The plaintiff filed the present suit for the recovery of Rs. 1,527-8-0 on the allegation that the firm Agarwal Glass Works which was carrying on the business of manufacturing and selling glass phials at Harduaganj District Aligarh sold glass phials worth Rs. 2,700 to the defendant, who gave a cheque for the said amount of Rs. 2,700 on the 4th of October, 1948 on the Hindustan Commercial Bank but the cheque was dishonoured. The plaintiff then demanded the money from the defendant who paid only Rs. 1,506. The plaintiff therefore, filed a suit for the recovery of the balance together with interest thereon at six per cent per annum in the Court of the Munsif of Koil, district Aligarh on the 24th of February, 1950. In the plaint, it was alleged that the transaction had taken place at Harduaganj within the jurisdiction of the Court. The payment was also agreed to be made at Harduaganj and, therefore, the Munsif at Aligarh had jurisdiction to try the suit.

3. At the trial, the defendant, among other pleas, denied the jurisdiction of the Court and contended that the goods had been sold to the defendant at Kanauj and there was no contract to pay at Harduaganj Parties led evidence in support of their respective cases. The learned Munsif disbelieved the plaintiff's evidence and held that the Court at Aligarh had no jurisdiction to entertain the suit. The appeal filed by the plaintiff was dismissed by the learned civil judge on the 19th of May, 1954. The plaint was returned to the plaintiff for presentation to the proper Court on the 25th of August, 1954. The plaintiff then filed the present suit in the Court of Munsif at Kanauj on the 26th of August 1954. The defendant in this Court contended that the suit was beyond time, that the plaintiff had no right to file the suit as the firm Agarwal Glass Works was not registered under the Indian Partnership Act and that the defendant had paid the whole price. The trial Court decreed the suit and held that the defendant had not paid the whole price, that the balance of the amount claimed by the plaintiff was due, that the suit was not barred by section 69 of the Indian Partnership Act as the plaintiff firm had been dissolved before the suit, that the plaintiff was entitled to the benefit of section 14 Limitation Act and that the suit was within time. The suit was thus decreed for a sum of Rs. 1,354.

The defendant filed an appeal and reagitated all the points that were decided against him by the Munsif. The lower appellate Court only dealt with the question of limitation and did not decide any other point. On the question of limitation, the Court below merely considered the findings of the learned Munsif and the Civil Judge at Aligarh that no contract for payment of the money at Harduaganj had been proved and that the goods had not been purchased at Harduaganj. The Court did not go into the evidence produced by the parties in the suit but based its decision on the findings of the Court at Aligarh and concluded that the plaintiff did not prosecute the suit at Aligarh with good faith as he deliberately made false allegations in the plaint in order to give jurisdiction to the Aligarh Court. It held that the plaintiff could not get the benefit of section 14, Limitation Act. On these findings the suit was dismissed as time-barred and the present appeal has been filed against that decree.

4. Learned counsel appearing for the appellant in this Court contended that the lower appellate Court was wrong in basing its decision upon the findings of the Aligarh Court. The question of limitation was raised in the Court below and the Court was bound to decide the matter on the basis of the evidence before it. On the other hand, learned counsel for the respondent contended that the findings of fact recorded by the Al





















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