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Chhotabhai Jethabhai Patel v. Union Of India
Structured Summary of the Provided Legal Opinion
Factual and Procedural Background
On June 16, 1947 the plaintiffs consigned 250 baskets of beedies by rail from Sealdah to Rangapore under Railway Receipt No. 857964. Of these, about 209 baskets were delivered on or about September 6, 1947 in damaged condition with some pilferage, while 41 baskets were not delivered at all. To recover damages for short delivery and damaged delivery the plaintiffs sued in the Court of Small Causes, Calcutta on February 20, 1948 (claim valued at Rs. 1,890-11 annas) and obtained a decree. For the non-delivery of 41 baskets a separate suit was filed on September 1, 1948 in the High Court at Calcutta; that suit was dismissed for lack of jurisdiction on February 29, 1956. The present suit (instituted March 1, 1956) sought compensation for non-delivery (valued at Rs. 6,560), refund of freight (Rs. 59-12 annas), and legal expenses (Rs. 50), totaling Rs. 6,619-12 annas. The Union of India (defendant) denied liability and pleaded that the second suit was barred by Order 2, Rule 2 of the Code of Civil Procedure (CPC). The trial Court accepted the defendant's bar plea and dismissed the suit; the first appellate court dismissed the appeal. The present second appeal challenges those decrees.
Legal Issues Presented
- Whether the subsequent suit (for non-delivery of 41 baskets) is barred by Order 2, Rule 2 of the Code of Civil Procedure.
- Whether the plaintiff’s institution of the first suit in the Presidency Small Causes Court (whose pecuniary jurisdiction was limited under Section 18 of the Presidency Small Causes Courts Act) prevents application of Order 2, Rule 2 to a subsequent suit filed in a court of competent jurisdiction.
- Whether the claims for (a) damages for delivery in damaged condition and pilferage and (b) damages for non-delivery constitute separate causes of action such that separate suits are maintainable.
Arguments of the Parties
Plaintiff's Arguments
- The first suit was instituted in the Presidency Small Causes Court, which under Section 18 of the Presidency Small Causes Courts Act had pecuniary jurisdiction limited to Rs. 2,000, so the plaintiff could not sue for the entire claim in that forum; therefore Order 2, Rule 2 should not bar a subsequent suit instituted in a court with appropriate jurisdiction for the omitted portion.
- The two suits concern different causes of action: the earlier suit was for damage caused by rainwater and pilferage, while the later suit was for non-delivery of baskets. Different evidence would be required to establish these distinct claims. The plaintiff relied on Md. Khalil Khan v. Mahubub Mian (AIR 1949 PC 78) to argue that if the evidence for the two claims differs, the causes of action are different.
Defendant's Arguments
- The plaintiff did not obtain leave from the first court (the Court of Small Causes) to sue subsequently for the omitted reliefs, and therefore the second suit is barred by Order 2, Rule 2 — the plaintiff is deemed to have relinquished the omitted portion of the claim by instituting the first suit in a court of limited pecuniary jurisdiction.
- The nature of the liability arises out of one contract of carriage under a single railway receipt and is governed by Section 72 of the Indian Railways Act read with Sections 151, 152 and 161 of the Indian Contract Act (railway as bailee). The defendant relied on authorities (including Musaddilal and earlier Calcutta decisions) to contend that claims arising from the same contract cannot be split into separate suits.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Md. Khalil Khan v. Mahubub Mian, AIR 1949 PC 78 | Principle that causes of action may be considered the same if in substance identical; one test being that if evidence to support the two claims is different, the causes of action may be different. | Relied on by the plaintiff to argue that different evidence for pilferage/damage and non-delivery makes them different causes of action. The court acknowledged the test but held that difference in evidence is not the sole test and did not accept the submission that the causes were different on that basis alone. |
| Governor-General in Council v. Musaddilal, AIR 1961 SC 725 | Railway administration is not an insurer but a bailee; liability governed by Section 72 of the Railways Act read with Sections 152 and 161 of the Indian Contract Act. | Relied on by the defendant to show the foundational contractual/bailee liability of the railway, supporting the proposition that all claims arose from one contract of carriage. |
| Duncan Brothers & Co. v. Jeetmull, (1891) ILR 19 Cal 372 | Where breaches arising out of one contract occur before any suit is brought, the claimant is debarred from bringing two suits under the equivalent of Order 2, Rule 2; claims arising from one contract constitute one cause of action. | Relied on by the defendant to support the proposition that claims under one contract cannot be split into multiple suits; used to analogize and reinforce the bar under Order 2, Rule 2. |
| Muhammad Hafiz v. Mirza Muhammad, AIR 1922 PC 23 | Where a creditor obtained a decree for part of a claim (interest), a subsequent suit for the principal and arrears was not maintainable under Order 2, Rule 2. | Relied on by the defendant to demonstrate that obtaining relief for part of a claim and later suing for the remainder is barred by Order 2, Rule 2. |
| Kanhaiyalal v. Union of India, AIR 1958 Pat 565 | When part of a consignment is not delivered and the balance is delivered in damaged condition, the two circumstances do not constitute two different causes of action; separate suits are not maintainable. | Relied on by the defendant and treated by the court as authority supporting the conclusion that part non-delivery and part delivery in damaged condition arise from the same cause (single contract) and cannot be split into multiple suits. |
Court's Reasoning and Analysis
The court framed the central issue as whether the second suit was barred by Order 2, Rule 2 of the CPC. It examined the competing contentions and the statutory and rule provisions relied upon.
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Interpretation of Order 2, Rule 2 and related rules:
- The court noted Order 2, Rule 2 (sub-rule (1)) requires a plaintiff's suit to include the whole of the claim arising from the causes of action; it also permits a plaintiff to relinquish part of a claim to bring the suit within a court's jurisdiction.
- Rule 3 of Order 2 was invoked to show that if the plaintiff omits to sue for reliefs to which he is entitled, he shall not afterwards sue for those omitted reliefs.
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Application to the facts:
- The plaintiff voluntarily elected to sue in the Presidency Small Causes Court, a court with limited pecuniary jurisdiction. By doing so without obtaining leave to later sue for omitted reliefs, the plaintiff must be deemed to have intentionally relinquished the portion of the claim beyond that court's jurisdiction.
- The plaint in the Small Causes Court (exhibit A) contained no indication that leave to sue subsequently for the omitted reliefs had been obtained. The absence of such leave meant Order 2, Rule 2 operated as a bar to the subsequent suit.
-
On the question whether the two suits involved distinct causes of action:
- Although different evidence may be required to establish non-delivery on the one hand and delivery in damaged condition on the other, the court held that difference in evidence is not the sole or conclusive test of whether causes of action are distinct.
- The court emphasized the foundational fact that all claims arose from one contract of carriage under a single railway receipt (June 16, 1947). The railway's liability was contractual/bailee liability under Section 72 of the Railways Act read with provisions of the Indian Contract Act.
- Given the single contractual transaction as the source of all claims, the plaintiff could not split the overall claim into separate suits. The authority cited (including Duncan Brothers, Muhammad Hafiz, Kanhaiyalal) supported the proposition that claims arising from the same contract or single transaction could not be litigated in successive suits where Order 2, Rule 2 applied.
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Conclusion of analysis:
- The court concluded that Order 2, Rule 2 applied and barred the subsequent suit because the plaintiff had sued in the Court of Small Causes without obtaining leave to sue later for the omitted reliefs.
- Consequently, the second suit was not maintainable in law and the courts below had correctly dismissed it.
Holding and Implications
Holding: The appeal is dismissed; the subsequent suit is not maintainable because it is barred by Order 2, Rule 2 of the Code of Civil Procedure.
Direct consequences for the parties:
- The plaintiff's subsequent claim for non-delivery (and associated freight refund and costs as claimed in the March 1, 1956 suit) is barred and the dismissal of that suit by the courts below is upheld.
- The appeal is dismissed without any order as to costs, and the plaintiff must bear the legal consequence of having split a single claim arising from one contract into multiple suits without obtaining the leave prescribed by law.
Broader implications:
The opinion confines its reasoning to the application of Order 2, Rule 2 and related rules to these facts and does not purport to lay down any novel legal principle beyond applying established authority that claims arising from a single contract or transaction cannot be split into successive suits when the procedural bar in Order 2, Rule 2 is engaged.
1. The only point for consideration in this appeal is whether the suit is barred under provisions of Order 2, Rule 2 of the CPC. The plaintiff consigned 250 baskets of beedies on June 16, 1947, through the railways for their transport from Sealdah Railway Station to Rangapore Railway Station in Assam on the basis of agreement contained in the Railway Receipt Mo. 857964 of even date. Out of 250 baskets, 209 baskets were delivered on or about September 6, 1947, in damaged condition and contents from some baskets were pilfered while 41 baskets were not delivered at all. For the recovery of the damage caused by short delivery and also delivery of the beedies in damaged condition the plaintiffs instituted in the Court of Small Causes, Calcutta on February 20. 1948, a suit valued at Rs. 1890/11/- and the suit was decreed. For damages for non-delivery of 41 baskets the plaintiffs filed a suit on September 1, 1948, in the High Court at Calcutta. On February 29, 1956, the High Court dismissed the suit on the ground that it had no jurisdiction to try the suit. Thereafter on March 1, 1956, the present suit was instituted. The suit was valued at Rs. 6560/- as compensation for non-delivery of the said 41 baskets of beedies, Rs. 59/12/- was claimed for refund of railway freight paid and Rs. 50/- as legal expenses in all for Rs. 6619-12 annas.
2. Union of India, the defendant, contested the suit and denied the liability for compensation and it was further contended that the suit was barred under provision of Order 2, Rule 2 of the CPC.
3. At the hearing of the suit, the only objection which was urged on behalf of the defendant was that the suit was I barred by Order 2, Rule 2 of the Code. The trial Court accepted the said contention and dismissed the suit and the appeal therefrom was also dismissed. The present second appeal arises out of the said appellate decree.
4. Mr. Charu Chandra Ganguly, the learned Advocate, appearing for the plaintiff has contended firstly that the suit was not barred under provision of Order 2, Rule 2 of the Code as the first court which tried the suit for recovery of damages due to rain water and pilferage in respect of the baskets delivered was filed in the Presidency Small Causes Court, Calcutta. Under Section 18 of the Presidency Small Causes Courts Act (Act XV of 1882) the pecuniary jurisdiction of the Presidency Small Causes Courts did not extend beyond Rs. 2,000/-. As the suit for recovery of the whole claim could not be instituted in such court, there could be, it was contended, no bar under Order 2, Rule 2 of the Code. Mr. Ajoy Kumar Basu, the learned Advocate appearing for the respondent, has contended that as no leave was obtained of the Presidency Small Causes Courts for filing a subsequent suit in respect of the damages for baskets not delivered, it must be held that such suit was barred under Order 2, Rule 2 as the plaintiff must be deemed to have abandoned its claim for the amount claimed in present suit. Mr. Basu further contended that the question of jurisdiction of the first court was immaterial and could not affect the provision of law and there was no bar in the plaintiff instituting its suit in the proper court having jurisdiction for the entire claim.
5. On a consideration of the respective contentions of the parties. I am of opinion that the contention of Mr. Ganguly has no substance. Order 2, R. 2 in sub-rule (1) states that every suit shall include the whole of the claim which the plaintiff is entitled to make in respect of the causes of action but at the same time it gave liberty to the plaintiff to relinquish any portion of his claim in order to bring the suit within the jurisdiction of any court. Here the plaintiff elected to bring the suit in the Presidency Small Causes Court when there was no bar in its instituting the suit for the entire claim in the court having jurisdiction. When such suit is filed in a court, not having the requisite pecuniary jurisdiction, it must be deemed, in absence of any leave of the court to sue for the other reliefs, that the plaintiff has intentionally relinquished that portion of the claim which was beyond the jurisdiction of the first court. Under Rule 3 of Order 2 it is provided that if the plaintiff omits to sue for all such reliefs to which he is entitled, he shall not afterwards sue for any relief so omitted. Merely because the first court had no jurisdiction to try the suit for all reliefs to which the plaintiff was entitled, it cannot be held that there is no bar in his instituting a subsequent suit in another court for other reliefs not claimed for by him in the first court. On the contrary it must be held that Order 2, Rule 2 of the Code operated as a bar to the second suit, if no leave therefor was obtained. It is again not the plaintiff's case that any such leave was obtained and the copy of the plaint of the suit in the Court of Small Causes exhibit A does not indicate so. The first contention of Mr. Ganguly must be overruled.
6. Mr. Ganguly has next argued that the causes of action of the two suits are wholly different and accordingly there cannot be any bar of the present suit under Order 2, Rule 2 of the Code, According to him the first suit was for damages caused by rain water and pilferage while the second suit was for damages for non-delivery of the baskets. It will appear that different sets of evidence will be necessary for establishing the two different claims of the plaintiff. Relying on the decision of the Judicial Committee of the Privy Council in Md. Khalil Khan v. Mahubub Mian, AIR 1949 PC 78, he contended that causes of action in the suits may be considered to be same if in substance they are identical, one of the tests laid down being that if the evidence to support the two claims is different, then the causes of action are also different. In the second suit, according to Mr. Ganguly, the evidence has to be led on the issue of the non-delivery whereas in the earlier suit, the evidence was confined to establish damage by rain water and pilferage. This will also be evidenced by the two certificates granted by the Railway Administration in regard to the two separate claims, one for short delivery in damaged condition, and the other for non-delivery exhibits 2 and 2(a) dated September 6 and 1, 1947, respectively.
7. Mr. Basu has contended that the foundation of the claim of the plaintiff against the railways is based on one contract, namely the contract of carriage of the consignment in question on the basis of one railway receipt and the liability of the administration is provided in Section 72 of the Indian Railways Act (Act IX of 1890), the railway's responsibility being that of a bailee under Sections 151, 152 and 161 of the Indian Contract Act, 1872 (Act IX of 1872). Mr. Basu also relied on the decision in the case of Governor-General in Council v. Musaddilal, AIR 1961 SC 725. and it was held in that case that the railway administration in India is not an insurer of goods, but it is merely a bailee of goods entrusted to it for carriage. Section 72 of the Railways Act prescribes that the measure of the general responsibility to a railway administration for loss, destruction or deterioration of goods is, subject to other provisions of the Act, governed by Sections 152 and 161 of the Indian Contract Act. 1872. Mr. Basu has also relied on the decision in Duncan Brothers & Co. v. Jeetmull, (1891) ILR 19 Cal 372 where it was held that when a contract for sale and purchase of goods is broken by the purchaser, in part by the refusal to take delivery, and in part by refusal to pay for goods delivered both breaches having occurred before any suit is brought the vendor is debarred by Section 43 of the CPC, 1882, (similar to Order 2, Rule 2 of the CPC, 1908) from bringing two suits against such purchaser, his claim being one arising out of one cause of action and based on one and the same contract. Mr. Basu also drew my attention to the® case of Muhammad Hafiz v. Mirza Muhummad, 26 Cal WN 297 : (AIR 1922 PC 23) where it was held that when a creditor obtained a decree in a suit for interest on loan arising from hypothecation bond and thereafter brought a suit for the principal sum and arrears of interest, the subsequent suit was held as not maintainable Under provision of Order 2, Rule 2 of the Code. It was held that the cause of action is the cause of action which gives occasion for and forms the foundation of the suit and if that cause of action enables a man to ask for a larger and wider relief than that to which he limits his claims, he cannot afterwards seek to recover the balance by independent proceedings. In Kanhaiyalal v. Union of India, AIR 1958 Pat 565 it was held that when out of a single consignment there is a non-delivery of part and delivery of the balance in damaged condition, the two circumstances do not constitute two different causes of action for the plaintiff and two suits on them are not maintainable. It was further held that the claims cannot be bifurcated as to constitute two different causes of action and accordingly the subsequent suit is held as not maintainable.
8. It appears to me, as is obvious, that the liability of the respondent arises out of one contract namely the contract for carriage which is the foundation of all the claims arising out of its breach, The claim is against the railways here is on two counts, one arising out of short delivery and the other out of delivery in damaged condition, but, that does not alter the foundation of the cause of action of the plaintiff against the railway— namely the liability of the railway administration under Section 72 of the Railways Act arising out of the contract of carriage under Railway Receipt dated June 16, 1947. Though different evidence may be necessary to establish non-delivery and delivery in damaged condition the same is not the sole test, though it is one of the tests, for determining the nature of the causes of action.
9. In view of the fact that the contract of carriage was a single transaction, in my view, the plaintiff is not entitled to split up his claims as different causes of actions for different suits and the two or more claims arising from the identical contract will not form different causes of action. The plaintiff having done so which is expressly prohibited by Order 2, Rule 2 of the Code must suffer the consequence and accordingly it must be held that the present suit is not maintainable in law and was rightly dismissed by the courts below.
10. The appeal in the circumstances is dismissed without any order as to costs.
11. Appeal dismissed.
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