PREMLATA NAHATA Vs. CHANDI PRASAD SIKARIA

JUDGEMENT

(1.) This is the defendant's application under Order 7 Rule 11 (d) of the Code of Civil Procedure, 1908 (in short "the CPC"). His case is that the plaint is liable to be rejected, because it is apparent from the statements in it that the plaintiff's suit is barred by law; the law that bars the suit is multifariousness.

(2.) The case made out in the plaint is this. The defendant is a share broker. Sri Mahendra Kumar Nahata is the husband of the first plaintiff and the father of the second plaintiff Sri Nahata and the defendant were known to each other. The plaintiffs and the defendant had entered into several different transactions before the transactions leading to the suit took place. In early 2000 the defendant approached Sri Nahata for arranging a loan of Rs. 5,00,000/- from the first plaintiff. Accordingly, a cheque dated April 7th, 2000 for Rs. 5,00,000/- was given to the defendant by way of loan, the terms and conditions where of were decided by oral agreement between Sri Nahata and the defendant. The cheque was deposited by the defendant in his personal account, and not in his clients' account, which is maintained by him according to the rules and regulations of the exchange and the other authorities, for carrying on share transactions on behalf of his clients. Similarly, a loan of Rs. 5,00,000/- was given to the defendant by the second plaintiff by a cheque dated April 26th, 2000. The cheque was handed over by Sri Nahata. For giving the loans Sri Nahata acted on behalf of the plaintiffs, and the terms and conditions of the loans were identical. The defendant was to repay the loans with interest by December 31st, 2001. He, however, failed and neglected to repay the loans and also the interest accrued thereon. He wrongly instituted two suits against the plaintiffs separately in the City Civil Court at Calcutta. Since the the plaintiffs' causes of action against the defendant, though arose out of two separate loans, raised common questions of fact and law, they joined together and decided to file one suit by joining their identical causes of action; they so decided also for avoiding multiplicity of proceedings and saving costs.

(3.) The case of the defendant is the following one. His transactions with the plaintiffs were separate, and hence they were not entitled to join together for filing one suit by joining their separate causes of action. The causes of action did not emanate from any common source, and there was no inter-dependence and nexus between them. On facts, it could not be said that the plaintiffs were jointly interested against the defendant. The plaintiffs ought to have filed two independent suits. Hence being bad for misjoinder of parties and misjoinder of causes of action the suit is barred by law.