BABURAM Vs. OCHHELAL
LAWS(MPH)-1953-7-3
HIGH COURT OF MADHYA PRADESH
Decided on July 06,1953

Baburam and Ors. Appellant
VERSUS
Ochhelal Respondents


Referred Judgements :-

SADASUK (SIC) DAS V. SIR. KISHEN PERSHAD [REFERRED TO]
DHONDI EMKI RAMAL V. HAZARI VITTAL [REFERRED TO]
CHARAN DAS VS. AMIR KHAN [REFERRED TO]
SARAFALLI MAHOMEDALLI VS. MAHASUKHBHAI JECHANDBHAI [REFERRED TO]
MOTI LAL MANUCHA VS. UNAO COMMERCIAL BANK, LTD , COWNPORE [REFERRED TO]



Cited Judgements :-

P SESHAPPA SETTY VS. KATTA VENKATARAMANA SETTY [LAWS(KAR)-1956-1-4] [RELIED ON]
P. Scshappa Setty and others VS. Katta Venkataramana Setty and others [LAWS(KAR)-1956-1-6] [REFERRED TO]
NITMOCHINDER SINGH GURDIAL SINGH VS. STATE OF PATIALA AND EAST PUNJAB STATES UNION [LAWS(P&H)-1954-12-7] [REFERRED TO]
M P JANARDHANANT VS. V KRISHNAMURTHY [LAWS(KAR)-1956-1-9] [REFERRED]


JUDGEMENT

Dixit, J. - (1.)THIS revision petition is directed against an order of the Civil Judge 1st Class Bhind granting leave to the Plaintiff -non -applicant to amend his plaint. On 10 -4 -1952 the Plaintiff brought a suit to recover Rs. 3400/ - the amount of principal and Rs. 56/8/ - interest thereon from the Defendant -applicants upon a Hundi dated 24 -12 -1951. It was said in the plaint that the Defendants who were the owners of the firm Baldeo Prasad Ajudhya Prasad borrowed Rs. 3400/ - from the Plaintiff and to secure repayment drew and accepted in their favour a Hundi payable sixty days after 24 -12 -1951. The Hundi was dishonoured and the Plaintiff accordingly instituted' a suit out of which this revision -petition arises, claiming the amount due upon the Hundi with interest.
After the framing of the issues and while the evidence of the Plaintiff was being recorded, the Plaintiff applied to the Court on 12 -9 -1952 for permission to amend his plaint so as to convert his suit into one on the original consideration. By the amendment the Plaintiff sought to allege that on 22 -4 -1948 the Defendants borrowed from him Rs. 1000/ - and that on 14 -6 -1948 they borrowed a further sum of Rs. 1000/ - and to secure repayment drew and accepted in their favour a Hundi dated 14 -6 -1948, for the sum of Rs. 2000/ -; that on 4 -7 -1948 the Defendants again borrowed Rs. 2000/ - and secured repayment of the amount by drawing and accepting in their favour a Hundi for the amount; that subsequently on 15 -9 -1950 the Defendants repaid Rs. 500/ - to the Plaintiff and executed a fresh Hundi for Rs. 3500/ - in respect of the balance of the amount due from them; that this Hundi was renewed first on 15 -11 -50 and then on 30 -1 -51 and that on 19 -5 -51 the Defendants again repaid Rs. 100/ - and drew a Hundi for the balance namely Rs. 3400/ -; that this Hundi was renewed on 24 -12 -1951. The trial Judge has relying on - 'Sarafalli Mahomadalli v. Mahasukh Bhai' : AIR 1933 Bom 476 (A) and - 'Dhondi Emki Ramal v. Hazari Vittal', AIR 1952 Hyd 137 (B) allowed the Plaintiff to amend his plaint and sue on the original consideration.

(2.)MR . Shivdayal learned Counsel for the applicants objected to the leave granted by the learned Judge firstly on the ground that the effect of the amendment was to introduce a totally new and inconsistent cause of action and secondly that the claim on the original consideration was at the date of the suit itself and the date of the amendment barred by limitation. I think the learned Civil Judge was right in permitting the Plaintiff to amend his plaint and sue on the original consideration. The question raised in this revision petition is whether the lower Court was right in allowing the amendment in order to enable the Plaintiff to change the basis of his suit and sue on the original consideration.
It seems to me unnecessary to consider in this revision petition the general question of the circumstances in which it is open to a creditor to fall back on the original consideration if, for any reason, he cannot maintain an action on the instrument itself as for example where the promissory note, or a bill of exchange is found to be inadmissible in evidence for want of stamp. The precise question that I have to consider here is whether when there is a completed transaction prior to and independently of a Hundi is the Plaintiff entitled to recover on the original consideration.

The general question has been considered in a number of cases decided by various High Courts. The classical decision is of Garth C.J. in - 'Sheikh Akbar v. Sheikh Khan', 7 Cal 256 (C). In that case the learned Judge' observed as follows:

Where a cause of action for money is one complete in itself, whether for goods sold, or for money lent or for any other claim, and the debtor then gives a bill or note to the creditor for payment of the money at a future time, the creditor, if the bill or note is not paid at maturity, may always, as a rule, sue for the original consideration, provided that he has not endorsed or lost or parted with the bill or note, under such circumstances as to make the debtor liable upon it to some third person. In such cases the bill or note is said to be taken by the creditor on account of the debt, and if it is not paid at maturity, the creditor may disregard the bill or note and sue for the original consideration.... But when the original cause (sic) action is the bill or note itself, and does (sic) exist independently of it, as for instance, (sic) in consideration of A depositing money with (sic) B contracts by a promissory note to repay it (sic) interest at Six months' date, here there is (sic) cause of action for money lent, or otherwise (sic) upon the note itself, because the deposit is (sic) upon the terms contained in the note, and (sic) other. In such a case the note is the only contract between the parties, and if for want (sic) proper stamp or some other reason the note (sic) not admissible in evidence, the creditor (sic) lose his money.

These observations of Garth C.J. have (sic) considered by most of the High Courts in (sic) cases. Some have followed them; others have (sic) distinguished and explained the meaning of the (sic) servations. But all the Courts are agreed, and (sic) is now well settled, that where the negotiable (sic) strument in question is a mere sequel to the (sic) transaction and not the basis of the (sic) itself, the creditor is entitled to sue both on (sic) instrument and alternatively on the consideration. The controversy in many of the decided case (sic) centred round the question whether when the (sic) and the execution of the contract therefore (sic) contemporaneous or simultaneous does a cause (sic) action exist distinct from the instrument itself. (sic) matter has been exhaustively dealt with by (sic) Rangoon High Court in - Chit Maung v. (sic) N.M.A. Kareem Oomer and Co.', AIR 1934 389 (F.B.) (D). It is not necessary for me to (sic)der the decision of the Rangoon High Court (sic) other cases in that line. For, in the present case (sic) question of the Hundi having been drawn (sic) taneously with the loan does not arise.

It is obvious from the amended statements the plaint that the Hundis which the Defendant drew and accepted in their favour and (sic) from time to time were for securing the repayment of the amount due on prior and completed (sic) transactions. The Hundis were given taken (sic) conditional payments of the loan. They were (sic) in accord and satisfaction of the Defendants'(sic) lilty on the original consideration. That, (sic) loan is renewed by execution of a fresh note (sic) a renewal of a previous Hundi, the payment (sic) Hundi or note is a conditional payment only (sic) now clear from the Privy Council decision in (sic) case of - 'Motilal v. The Unao Commercial (sic) Ltd.' : AIR 1930 PC 238 (E). In such cases the (sic) of action on the original consideration for (sic)lent remains suspended during the currency (sic) negotiable instrument, and it revives if the (sic) tiable instrument is dishonoured.

The present case seems to me to be con (sic) by the Privy Council decision in - 'Sadasuk (sic) das v. Sir Kishen Pershad', AIR 1918 PC 148 (sic) In that case Sir Kishen Prasad and one (sic) borrowed on 14 -4 -1910 from the Plaintiffs who (sic) the Appellants before the Privy Council a (sic) Rs. 35000/ - and to secure repayment drew (sic) accepted in their favour on the same date(sic) Hundis each for the sum of Rs. 2500/ -. The (sic) were dishonoured. Thereupon, the (sic) brought an action upon the Hundis to (sic) amount due. The suit was dismissed. Lord (sic) master who delivered the judgment of the (sic) Council made the following observations (sic) very pertinent to the question before me. (sic)

It would, of course, have been open to the Plaintiffs had they thought fit to have (sic) case in an alternative form, and to have (sic) both on the Hundis and alternatively (sic) consideration.

(3.)THESE observations show that in cases such (sic) the present one the Plaintiff is entitled to claim (sic) the footing of the original consideration. The (sic) of action on a Hundi is no doubt distinct, from the cause of action on the loan which gave (sic) to the Hundi. But if the Plaintiff could have (sic) sued in the alternative upon the original consideration, it is difficult to see why he should not be allowed to amend his plaint so as to base (sic) suit only on the original consideration. This (sic) finds support in the decision of the Bombay High Court reported in ' : AIR 1933 Bom 476 (A)' (sic) which has been relied upon by the lower Court.
In that case the Plaintiff sued two persons alleg -(sic) them to be partners for the recovery of moneys (sic) on a promissory note. The note was signed by (sic) of the Defendants. The trial Court decreed (sic) Plaintiff's claim against both the Defendants (sic) them to be partners. In appeal the District Judge thought that as the Plaintiff's claim has based on the promissory note which was signed only by one of the Defendants, the Plaintiff (sic) get a decree against the other Defendant (sic) had (sic) signed the note. The District Judge, however, granted leave to the Plaintiff to amend (sic) plaint by claiming in the alternative the money (sic) from that Defendant on the dealing which re -(sic) in the debt secured by the promissory note.

The learned Judges of the Bombay High Court (sic) upholding the decision of the District Judge observed:

The cause of action on a promissory note is distinct from the cause of action on the loan which gives rise to the promissory note. But those two distinct causes of action can be set up in the same suit by the original plaint. Hence if two alternative and inconsistent claims can be combined originally in the plaint there is no reason on principle, why they should not be combined at a later stage by amendment. Whether in any particular case, the amendment is asked for at too late a stage or in circumstances which make (sic) unfair to grant the leave, is another matter, (sic) as a mere proposition of law there is no (sic) why amendment of this nature should not (sic) allowed at the trial or even in appeal.



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