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Baboolal Gyansingh v. Sunderlal Munnalal

Madhya Pradesh High Court
Oct 4, 1960
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Structured Summary of the Court Opinion

Factual and Procedural Background

This revision under Section 25 of the Provincial Small Cause Courts Act was filed by the plaintiff against a decree dated 3-2-1960, passed by the Second Additional District Judge, Bhopal, under Section 9 of the M.P. Courts Act, 1958, in Small Cause Suit No. 145 of 1959.

The plaintiff (applicant) instituted a suit for recovery of Rs. 250 as rent for the period 26-6-1956 to 26-7-1959, relying on a rent note dated 26-9-1955 (Ex. P-1). The plaint alleged that the plaintiff was the owner of the suit house.

The defendant (non-applicant) denied that the plaintiff was the owner and pleaded that the plaintiff was in fact a mortgagee in possession under a registered mortgage deed dated 26-9-1955 for Rs. 200. The non-applicant asserted the rent note was actually interest on that mortgage and that the appellant had already received payment evidenced by a receipt dated 26-9-1956 (Ex. D-1) for Rs. 231, in full satisfaction of the mortgage and interest; additional small instalments were also claimed to have been paid.

At trial the plaintiff in his deposition admitted being a mortgagee in possession but denied signing the receipt (Ex. D-1). The learned Small Cause Judge took a sample signature (Ex. D-2) and concluded the signature on Ex. D-1 belonged to the plaintiff. On that basis the Judge held the mortgage debt with interest had been repaid and dismissed the plaintiff's suit in its entirety.

Legal Issues Presented

  1. Whether a Small Cause Court had jurisdiction to entertain a suit which in substance concerned interest due on a mortgage of immovable property (implicating Article 11 of Schedule II of the Provincial Small Cause Courts Act).
  2. Whether, given the procedural posture and the parties' pleadings, the plaint should be returned for presentation to a proper court under Order VII Rule 10 of the Civil Procedure Code read with Section 17 of the Provincial Small Cause Courts Act, or whether the suit should be remitted to a regular court under Section 23 of the Provincial Small Cause Courts Act.
  3. Whether the receipt (Ex. D-1) was genuine and in the handwriting of the plaintiff, such that it extinguished the claimed mortgage debt and interest, thereby defeating the plaintiff's claim.

Arguments of the Parties

Applicant's (Plaintiff's) Arguments

  • The plaintiff claimed Rs. 250 as rent for a specified period on the basis of a rent note (Ex. P-1) and alleged ownership of the suit house.
  • At the revision stage, the applicant's counsel urged that the plaint be returned for proper presentation under Order VII Rule 10 CPC read with Section 17 of the Provincial Small Cause Courts Act, or that the suit be remitted to a regular Court under Section 23 of the Provincial Small Cause Courts Act because the suit involved a question of title.
  • The plaintiff denied the authenticity of the receipt (Ex. D-1) and denied having signed it.

Non-Applicant's (Defendant's) Arguments

  • The defendant denied the plaintiff's ownership and alleged the plaintiff was a mortgagee in possession by virtue of a registered mortgage deed dated 26-9-1955 for Rs. 200.
  • The rent note was contended to be interest on the mortgage; the rate alleged in the rent note was excessive.
  • The defendant relied on a receipt dated 26-9-1956 (Ex. D-1) evidencing payment of Rs. 231 in full satisfaction of the mortgage with interest and also relied on additional small payments; the receipt also recited that all rent up to 26-9-1956 had been paid.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Mst. Jageshwar Kuer v. Tilakdharisingh, ILR 2 Pat 746 (AIR 1924 Pat 267) The Division Bench refused to return the plaint and dismissed the suit which was triable by the Deputy Commissioner, where defence allegations established facts inconsistent with the plaint. The court cited this decision to support the proposition that when a plaint appears triable on its face but defence shows the plaintiff's allegations to be false, the proper course may be dismissal rather than returning the plaint for presentation to a proper court.
Durgaprasad Seth v. Omprakash, AIR 1938 All 39 A similar course was followed — the plaint was not returned but the suit was dismissed where the defence established facts inconsistent with the plaint. Used as additional authority for dismissing rather than returning the plaint where defendant's plea showed the plaint's allegations were false.
Sitladin v. Mohan, ILR 13 Luck 18 (AIR 1937 Oudh 183) Held that where defence allegations establish that the plaint is not maintainable in the forum chosen, the Court should dismiss the suit rather than return the plaint for presentation to a proper court. Relied upon to show consistency in judicial approach that dismissal is appropriate where the plaint proves to be false on trial.
Mangnia v. Sakia, ILR (1941) Nag 96 (AIR 1940 Nag 331) Explained at length that if a plaint appears triable on its face but defendants on trial show the allegations to be false, the Court should dismiss the suit; Order VII Rule 10 is primarily for plaints which on their face show want of jurisdiction. The case distinguished such situations from valuation issues and cited Order VII Rule 11(b) as to preliminary enquiry on valuation. The court quoted and followed the reasoning of Puranik J. in support of dismissing the suit on the merits (rather than returning the plaint) where the plaintiff persisted in false allegations and the Court found them untrue on trial.

Court's Reasoning and Analysis

The court's analysis proceeded in several linked steps:

  1. Jurisdictional bar: The court observed that because the present suit was in substance a claim for interest due on a mortgage of immovable property, Article 11 of Schedule II of the Provincial Small Cause Courts Act barred a Small Cause Court from cognizance. Thus, as found by the trial judge, the suit was not triable by a Small Cause Court.
  2. Plaintiff's misrepresentation: The court noted that the plaintiff had alleged ownership in the plaint but admitted at deposition that he was a mortgagee in possession. The court treated this as a material suppression of fact and found the suit for rent as owner to be not maintainable when the claim depended on the mortgage relationship.
  3. On the question of return versus dismissal: The court examined Order VII Rule 10 CPC read with Section 17 of the Provincial Small Cause Courts Act and Section 23 of the Provincial Small Cause Courts Act. It distinguished situations where the plaint as originally presented shows lack of jurisdiction (which requires return of the plaint) from cases where the plaint appears to be triable but defence allegations, developed in trial, reveal that jurisdiction is lacking. In the latter situation the court is not obliged to return the plaint but may dismiss the suit.
  4. Discretion under Section 23: The court rejected the applicant's request to remit the suit under Section 23, noting that the powers under that section are discretionary and that the applicant had disentitled himself to such indulgence by suppressing a material fact (that he was a mortgagee) and by seeking transfer only at a late stage.
  5. Precedential support: The court relied on earlier decisions (Patna, Allahabad, Oudh and Nagpur decisions cited) which it characterized as holding that where the plaintiff persists in a false allegation and the case is tried on its merits, the court should dismiss rather than return the plaint. The court quoted the reasoning in Mangnia v. Sakia at length and expressly agreed with Puranik J.'s view.
  6. Factual finding on Ex. D-1: The court accepted the trial judge's handwriting comparison (Ex. D-2) and concluded there was no doubt that the receipt (Ex. D-1) was in the handwriting of the applicant. On that factual finding, the court concluded the mortgage debt with interest had been paid and therefore nothing was due to the applicant.
  7. Consequence for revision: Because the trial judge correctly dismissed the suit on its merits and because the applicant had suppressed material facts and asserted falsehoods, the revisional court declined to interfere under Section 25 of the Provincial Small Cause Courts Act.

Holding and Implications

Holding:

The revision fails and is dismissed with costs.

Implications / Direct consequences:

  • The trial court's dismissal of the plaintiff's suit is affirmed; the revisional court declined to exercise its powers under Section 25 to interfere with that dismissal.
  • The applicant is ordered to pay costs: counsel's fee of Rs. 25/- if certified; other costs of the trial court to be borne as directed by that Court.
  • The court did not remit the suit to a regular court under Section 23, and did not return the plaint under Order VII Rule 10, because (a) the plaint as presented appeared triable and (b) the plaintiff persisted in factual assertions that were found to be false and had suppressed material facts.

The opinion does not purport to establish a new legal principle; it applies existing statutory provisions and precedents to affirm that where a plaint is apparently triable but is shown on trial to be founded on falsehoods or suppressed facts, dismissal (rather than returning the plaint) is appropriate. The decision's direct effect is limited to the parties: dismissal of the revision with costs.

Show all summary ...

1. This revision under Section 25 of the Provincial Small Cause Courts Act is by the plaintiff-against the decree, dated, 3-2-1960, passed by Shri R. K, Shukla, Second Additional District Judge. Bhopal, empowered under Section 9 of the M. P. Courts Act, 1958, in Small Cause Suit No. 145 of 1959.

2. The applicant filed the present suit tor recovery of Rs. 250/- as rent for the period from 26-6-1956 to 26-7-1959, on the basis of a rent note, dated. 26-9-1955 (Ex. P-1). The plaint alleged that the rent was claimed, as the plaintiff was owner of the suit house.

3. The non-applicant, in his defence, denied that the plaintiff was owner of the suit house. On the other hand, he alleged that the plaintiff was a mortgagee with possession on the strength of a registered mortgage deed dated, 26-9-1955 for a consideration of Rs. 200/-. The rent note, in tact, was by way of interest upon the mortgage. The rate of interest agreed to in the guise of a rent note was excessive, as it was at the rate of Rs. 3/8/- per cent per month.

He further alleged that he had paid an amount of Rs. 231/-, as was evidenced by the receipt, dated, E6-9-1956 (Ex. D-1). As he had paid the said amount in full satisfaction of the mortgage claim with interest, nothing was due, and, therefore, the mortgagee could not maintain the present suit. The said receipt also recited that all rent upto that period namely, 26-9-f956 had been paid. As such, the non-applicant had paid some more amounts in small instalments besides the amount of Rs. 231/-.

4. The applicant, in his deposition, admitted that he was a mortgagee with possession. However, he denied the receipt, dated, 26-9-1956 (Ex. D-1). He also denied that he had signed any such receipt.

5. The learned Small Cause Judge came to the conclusion that the rent note was, in tact, in lieu of interest on the mortgage. The learned Judge had taken a sample signature of the plaintiff-applicant, as per Ex. D-2 in English as well as in Hindi. The learned Judge was of opinion that the signature on Ex. D-1 was of the plaintiff. As such, the mortgage amount along with interest had been repaid. In that view of the case, the plaintiff's suit was dismissed in its entirety.

6. As the present suit was in respect of interest due on the mortgage of immoveable property, Article 11 of Schedule 11 of the Provincial Small Cause Courts Act was a bar to the cognizance of the suit by a Small Cause Court. The suit could not have been tried in the Small Cause Court.

7. As the plaintiff was, on his own admission, a mortgagee, he could exercise whatever rights he had in that capacity. On the other hand, he suppressed the fact that he was a mortgagee. In the plaint, he alleged that he was the owner of the house. However, when constrained to admit, he admitted his possession as a mortgagee. It is, therefore, clear that the present suit for rent as owner was not maintainable and the claim for rent being based on a mortgage, the suit was not tenable in a Small Cause Court.

8. The learned counsel for the applicant urged that the plaint be either returned for proper presentation under Order 7 Rule 10 of the Civil Procedure Code read with Section 17 of the Provincial Small Cause Courts Act or that the suit be remitted to a regular Court under Section 23 of the Provincial Small Cause Court Act, as it involves a question of title, At this stage, it may be pertinent to note that the applicant did not even file the mortgage deed in the trial Court. I am unable to accept the contention of the learned counsel for transferring the case to the regular Court under Section 23 of the Provincial Small Cause Courts Act, as this request is being made at a late stage upon suppression of a material fact, which was necessary for an adjudication of the rights between the parties on a correct basis.

The powers under the section are discretionary and the applicant, by suppressing a material tact, has disentitled himself to indulgence at the revisional stage. The section is clearly inapplicable, as the suit, as found by the trial Judge, is not triable by a Small Cause Court. The section would be attract-ed where the suit be cognisable by a Small Cause Court, but at the same time, the court is required to decide a question of title relating to immoveable property. Therefore, I am of opinion that this Court is unable to act under the section.

9. As regards the question about return of the : plaint under Order 7 Rule 10, Civil Procedure Code read with Section 17 of the Provincial Small Cause Courts Act, the provision is mandatory. But, it ; would be attracted where upon the plaint as presented, the Court finds that it has no jurisdiction to try the suit. If upon the plaint as presented, the Court finds that it has jurisdiction, but subsequently, if upon the defence allegations, it is discovered that the Court has no jurisdiction, the Court is not bound to return the plaint, but has the power to dismiss the suit. A plaintiff, having chosen the forum and elected to contest the lis, cannot later on be heard to say that if upon the defence contention the Court is found to have no jurisdiction, the plaint should be returned to him for proper presentation under Order 7 Rule 10 of the Civil Procedure Code. There is ample authority for such a course as is adopted by me.

10. In Mst. Jageshwar Kuer v. Tilakdharisingh ILR 2 Pat 746: (AIR 1924 Pat 267) a Division Bench of the Patna High Court refused to return the plaint and dismissed the suit, which was triable by the Deputy Commissioner on account of the tact that although t e plaintiff had purported to file the suit against an alleged trespasser, upon defence allegation it was established that the dedendant was a non-occupancy raiyat, In Durgaprasad Seth v. Omprakash, AIR 1938 All 39 Mohammad Ismail J. followed the same course. In Sitladin v. Mohan, ILR 13 Luck 18: (AIR 1937 Oudh 183) Ziaul Hasan J. following, the earlier view of the Allahabad High Court, held that under such circumstances, the Court should dismiss the suit and not return the plaint for presentation to proper Court.

11. In Mangnia v. Sakia, ILR (1941) Nag 96: (AIR 1940 Nag 331) decided by Puranik J. the suit was filed in the Small Cause Court on the definite allegation that the accounts of the partnership had been settled and an ascertained sum was due to the plaintiff. Therefore, the plaintiff claimed an ascertained sum and filed the plaint in a Small Cause Court. The defence was that no accounts had ever been settled and the only remedy of the plaintiff was to sue for rendition of accounts of the partnership firm. As such, the Small Cause Court had not jurisdiction to try the suit. The learned Small Cause Judge, instead of returning the plaint, dismissed the suit. At the revisional stage a prayer was made that the plaint ought to be returned for presentation to proper Court. Puranik J. made the following observations:

The Court judging from the allegations in the plaint could not throw it out and say that it had no-jurisdiction to try the same. In this case the defendants Nos. 1 and 2 pleaded that the allegations to the plaint that the accounts were settled and balance struck are false and the suit as framed is not tenable. They pleaded that plaintiff should have sued for dissolution of partnership and accounts in a proper Court and should not have come to the Small Cause Court on false averments. The plaintiff instead of taking the hint if his allegations were not true and instead of immediately either asking for the amendment of the plaint and return thereof or applying for withdrawal with liberty to bring a fresh suit, insisted on the suit being tried in the Small Cause Court and stated that his allegations were true. The plea raised by the defendants in this case was a part of the main defence on merits. The Court investigated into the cases of the respective parties and came to the conclusion that the plaintiff's suit was false and dismissed it. This was not therefore a case in which the plaint should have been returned for presentation to proper Court. Plaintiff who insisted on adhering to falsehood and who does not and could not challenge the finding of the Court below on that point which is adverse to him, ought to take the consequences of his persisting in falsehood. He cannot be allowed to claim the benefit of Order VII, Rule 10, and argue that the rule states that at any stage the plaint has to be returned and the mere tact that he joined issue and went to trial did not permit the Court to 'dismiss the suit, I was asked to interpret the rule this way inasmuch as there are cases in which questions of overvaluation and undervaluation are involved and the issue is tried and decided and if it is found that the suit is overvalued and is beyond the jurisdiction, the plaint is usually returned. This is so, but I do not regard an issue regarding overvaluation or under-valuation as an issue on the merits of the case. The Civil Procedure Code also requires that such a point ought to be decided as a preliminary point. Order VII, Rule 11(b) empowers the Court, at the initial stage of the case, to enter into that enquiry and give plaintiff time to correct the valuation and if on an enquiry the proper valuation is found either in excess of or lower than the jurisdiction of the Court, the Court ought to possess the power to return the plaint. This is thus an exception permitted by law, but to lay down a general proposition that in all cases, howsoever false the allegations of the plaintiff, the Court as soon as it discovers the falsehood, ought to return the plaint, will not be correct. I understood the words 'the plaint' as meaning the plaint as originally presented. If on the face of the plaint the Court finds that it has no jurisdiction to try the case, it will return the plaint at any stage of the case, if the Court fails to detect want of jurisdiction in it to begin with, but where a plaint on the face of it is triable by the Court and though the other side challenges the allegations in the plaint, the plaintiff sticks to them and wants the Court to try the case, the Court proceeds to try the case on merits and is not deciding any preliminary point about jurisdiction. If on such a trial the Court comes to the conclusion that plaintiff's contention is false and he cannot maintain the suit as laid, the Court ought to dismiss the suit and no question of returning the plaint under Order VII, Rule 10, arises in such a case. I go even the length of stating that the Court will be failing to exercise the jurisdiction vested in it by law if instead of dismissing the suit the Court were to return the plaint for presentation to proper Court
.

Further on the learned Judge, while concluding the judgment, observes as follows;

"As I understand the law the dismissal of the suit in the circumstances of the case and not a return of the plaint for presentation to proper Court was the legal and just order and the Court would have failed to exercise jurisdiction vested in it by law if instead of dismissing the suit the Court would have returned the plaint for presentation to proper Court"
.

It will, therefore, be seen that the power under Order 7 Rule 10 of the Civil Procedure Code is to be exercised in favour of a bona fide litigant, who does not depend on falsehood. As opined by the learned Judge if the Court returns the plaint for presentation instead of dismissing the suit it would be acting in excess of the jurisdiction conferred by law. I am in respectful agreement with the view expressed by Puranik J. Therefore, I am of opinion that the learned Small Cause Judge acted rightly in dismissing the suit on merits and not returning the plaint for presentation to proper Court.

12. There is another aspect which persuades me to adopt the present course. I am inclined to accept the conclusion of the learned Small Cause Judge that the receipt (Ex. D-1) is in the hand-writing of the applicant. The learned trial Judge had taken a sample hand-writing of the applicant, which was Ex. D-2. Upon a mere perusal of the two documents it would be clear that there can be no doubt about the receipt (Ex. D-1) being in the hand-writing of the applicant. If that is so, it is clear nothing would be due to the applicant, inasmuch as, all the amount due to the applicant on the mortgage with interest has already been satisfied. I am of opinion that the applicant made a deliberately raise claim in the present suit by suppressing the real facts. For that reason, he must suffer the consequences of his own falsehood. Therefore, as the learned Small Cause Judge acted rightly in dismissing the suit, I would decline to interfere in exercise of revisional powers under Section 25 of the Provincial Small Cause Courts Act.

13. As a result, this revision Fails and is dismissed with costs. Counsel's fee Rs. 25/- if certified. The costs of the trial Court shall be borne as directed by that Court.