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Smart Summary

Factual and Procedural Background

The plaintiff appealed against a decree of the Additional District Judge, Balaghat, dismissing his suit for recovery of damages (Civil Suit No. 15-B of 1949). The plaintiff's estate had been placed in charge of the Court of Wards from 8-12-1930 to 16-4-1946. During that period decrees were obtained against debtors to the estate; the plaintiff alleges that decrees listed in Schedules A and B totaling Rs. 11,689-10-9 were negligently allowed to be barred by limitation. The suit was instituted principally against the State of Madhya Pradesh and the Deputy Commissioner, Balaghat (representing the Court of Wards). The defendants sought joinder of the Manager, Court of Wards; the lower court on 20-3-1950 held the Manager was not a necessary party and the suit proceeded against the two defendants. The defendants applied (31-8-1949) under Order 12, Rule 8, CPC for production of the plaintiff's books of account; the plaintiff produced only five suit registers and did not call the Manager as a witness.

Legal Issues Presented

  1. Whether the plaintiff proved, as required in negligence cases, a duty to take care, a breach of that duty, and that such breach was the proximate cause of the loss alleged (i.e., whether the defendants are liable for the loss through negligence).
  2. Whether the Manager, Court of Wards was a necessary party to the suit (as contended by the defendants and considered by the lower court).
  3. Whether the defendants (State/Court of Wards) could be held liable for any loss in light of the question whether assumption of management was an act of the State in exercise of sovereign power (though the Court did not decide this point).

Arguments of the Parties

Plaintiff's Arguments

  • The Court of Wards acted with gross negligence and allowed recovery of the claims in Schedules A and B to be barred by limitation.
  • No attempts were made to recover amounts either privately or by execution proceedings despite sufficient funds being available.
  • The Provincial Government supervised the Court of Wards, charged a percentage of income for management, and together with the Court of Wards stood in a trustee-like position bound to take reasonable care; breach of that duty caused the loss.

Defendants' Arguments

  • The Manager, Court of Wards, who was in actual charge of management, was a necessary party and primarily responsible for realisations.
  • By application under Order 12, Rule 8, CPC they sought production of the plaintiff's books of accounts; they asserted many decretal claims had been settled privately and noted in the Manager's books and suit registers.
  • The plaintiff did not produce his books of account and failed to call the Manager to explain whether decretal claims remained unrealised and why.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Nazir Abbas v. Ajamshah, ILR (1947) Nag 955: (AIR 1949 Nag 60) (A) Principles governing actions for negligence: plaintiff must establish (1) a duty to take care, (2) breach of that duty, and (3) that such breach was the proximate cause of the loss or injury. The Court applied these principles to require proof of duty, breach and causation; it held the registers and receipts were insufficient to prove loss against supervisory defendants and used the precedent to affirm that the plaintiff failed to prove negligence causally linked to the loss.

Court's Reasoning and Analysis

The Court observed that the Manager, Court of Wards, was the person primarily responsible for management and realisation of decrees under Section 19(1)(c) of the Central Provinces Court of Wards Act, 1899. Applying the negligence test from Nazir Abbas v. Ajamshah, the Court required proof of duty, breach and proximate causation. The plaintiff produced only five suit registers and did not produce account books which the Court identified as the best evidence of any loss; the entries proved related only to failure to take execution steps after a certain date and did not establish that the decretal claims were not otherwise realised or settled. Witness Trimbakrao Lokhare's testimony that debtors were solvent and that he warned the Manager was uncorroborated and had to be viewed with caution because he was primarily responsible for realisation. Given the absence of the plaintiff's account books and independent evidence showing wilful negligence by the Manager, the lower court's finding that the plaintiff failed to prove any actual loss, and failed to prove negligence by the Manager, was justified. The Court additionally stated it was unnecessary to decide whether the Court of Wards' management amounted to a sovereign act exempting the State from liability.

Holding and Implications

DISMISSED — The appeal fails and is dismissed with costs.

Direct consequences: the plaintiff's suit for recovery of the alleged amount is dismissed and the lower court's finding that the plaintiff failed to prove actual loss or negligence is affirmed. The opinion does not purport to lay down a new precedent beyond applying existing negligence principles.

    Zankarsingh v. State Of Madhya Pradesh

    1. This is plaintiff's appeal against the decree passed by the Additional District Judge, Balaghat, in Civil Suit No. 15-B of 1949, dismissing his suit for recovery of damages.

    2. By virtue of the State Government notification No. 3814-2447-XII, the estate of the plaintiff-appellant was placed in charge of the Court of Wards with effect from 8-12-1930. Its superintendence terminated on 16-4-1946 when the estate was returned to the plaintiff. During this period, decrees were obtained against persons owing money to the estate. The case of the plaintiff was that decrees as per Schedules A and B, amounting to Rs. 11,689-10-9 were negligently allowed to be barred by limitation. He accordingly filed the suit, out of which this appeal arises, for recovery of the said amount.

    3. The suit was instituted principally against the State of Madhya Pradesh. The Deputy Commissioner, Balaghat, was also joined as a defendant as representing the Court of Wards. The defendants contended that the Manager, Court of Wards, who was in actual charge of the estate should be added as a defendant. The lower Court, by order dated 20-3-1950, however, negatived the contention that he was a necessary party. The suit accordingly proceeded against the two defendants alone.

    4. The gist of the plaintiffs action against the defendants is contained in paras. 4 and 5 of the plaint which are reproduced below:

    "4. That the Court of Wards acted with gross negligence and allowed the recovery of the claims of the plaintiff mentioned in the Schedules A and B to get barred by time; that no attempts wore made to have the amounts recovered either privately or by filing and conducting execution proceedings against the judgment-debtors, who were quito solvent and could have easily paid off the decretal amounts due by them. The Court of Wards had sufficient funds of the plaintiff at its disposal to file and conduct execution proceedings against the judgment-debtors.

    ''5. That the Provincial Government had the supervision of the Court of Wards and it was charging the plaintiffs estate a certain percentage of its income on this account. Due to the assumption by the Government of management of the plaintiff's estate, he (plaintiff) was unable to act independently. The Provincial Government and the Court of Wards together were in the position of a trustee in respect of the property of the plaintiff in their charge. They were in duty bound to take reasonable care of it, and to avoid the loss caused to the plaintiff, which is the subject-matter of this claim. There was a breach of this duly on the part of the Provincial Government and the Court of Wards and the loss caused to the plaintiff is the direct result of this breach of duty on their part."

    It will appear from the above that no positive act was ascribed to the defendants as part of the cause of action. As the actual management admittedly was in charge of the Manager, Court of Wards, he would be the person primarily responsible for the loss, if any, under Section 19(1)(c) of the Central Provinces Court of Wards Act, 1899. The question, therefore, is whether the plaintiff has succeeded in proving the alleged loss through his negligence.

    5. On 31st August 1949, the defendants made an application to the lower Court under Order 12, Rule 8, Civil Procedure Code, for production by the plaintiff, inter alia, of all his books of accounts. They also averred in their written statement that according to their information many of the decretal claims were settled privately and the Manager, Court of Wards, had taken notes of the settlement in the books of accounts and the suit registers. The plaintiff, however, did not produce the books of accounts and filed only 5 suit registers at the stage of evidence. He also did not put the Manager, Court of Wards, in the witness-box to explain if any decretal claim remained unrealised and, if so, the reason therefor.

    6. In Nazir Abbas v. Ajamshah, ILR (1947) Nag 955: (AIR 1949 Nag 60) (A), a Division Bench of this Court has laid down the principles governing the suit based on negligence. It was held that the plaintiff, in order to succeed in his suit for damages for negligence, must establish, firstly a duty to take care, secondly a breach of the duty and thirdly that such breach was the proximate cause of the loss or injury sustained by him. That suit was filed against the Kamdar who was responsible for making the realisations, and also the Manager, Court of Wards, whose principal duty was to supervise the work of the Kamdars. The receipts passed by the Kamdar were filed in the suit, and his signature thereon was proved. Their Lordships did not hold the receipts as sufficient to prove the loss as against the Manager, Court of Wards.

    In the present case also, the plaintiff has only filed 5 suit registers in regard to which only the writing of some of the entries by the Kamdar, Trimbak Rao Lokhare has been proved. Even assuming these documents to be duly proved, they only establish that steps to execute the decrees amounting to Rs. 11,669-10-9 were not taken after a certain time. They do not, however, prove that the decretal claims were not otherwise realised or settled. Whatever evidentiary value, therefore, these registers may have against the kamdar, they do not establish the loss as against the defendants.

    7. Trimbakrao Lokhare (P.W. 2) was in charge of the Court work of the plaintiff's estate. He has doubtless deposed that the debtors of the decrees which became barred by limitation, were solvent persons. He also stated that he was warning the Manager, Court of Wards, for taking steps for execution. His evidence, however, is uncorroborated and has to be read with caution became he was the person primarily responsible for the realisation of the decrees.

    The best evidence of the loss, if any, would have been furnished by the plaintiff's account books. It was, therefore, his duty to produce them. He should also have led evidence of an independent and reliable character to prove that the loss, if any, was caused by the wilful negligence of the Manager, Court of Wards. In the absence of such evidence, the lower Court was justified in holding that the plaintiff had failed to prove that any actual loss was caused to him. We, therefore, confirm this finding and further hold that it is also not proved that the loss, if any, was caused by the negligence of the Manager, Court of Wards.

    8. In the view that we have taken, it is not necessary to consider whether the assumption of the management of the plaintiff's estate by the Court of Wards was an act of the State in exercise of its sovereign power, which exempts the defendants from-liability for the loss, if any, caused to the plaintiff during the course of management.

    9. The appeal fails and is dismissed with costs.

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    Zankarsingh v. State Of Madhya Pradesh
    (Dec 31, 1956)