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Kanraj v. Vijaisingh
Structured Summary of the Opinion (as provided)
Factual and Procedural Background
This is an appeal by the plaintiff, Kanraj, in a money suit originally filed on 24 July 1948 against two defendants: Vijai Singh (Jagirdar of Ramseen) and Khub Chand. The suit arose from an order of the Superintendent, Court of Wards, dated 4 April 1947, in which a claim was allowed against the Thikana Ramseen for a sum recorded as Rs. 11,359/7/- (the opinion notes the correct figure as Rs. 11,365/7/-). Khub Chand purportedly obtained that order and executed an assignment of it in favour of the appellant on 25 July 1947.
The plaintiff alleged that Vijai Singh, as heir and legal representative of Mohabbat (Mahabbat) Singh and being in possession of the estate, was liable to pay the amount of the decree but refused to do so. The plaintiff sought (1) a decree for recovery of Rs. 11,364/7/- (noting the slightly different figures at places in the record) against Vijai Singh, and (2) a decree against Khub Chand for any amount he might have received from Vijai Singh after the assignment. Interest was claimed from the date of the suit.
The defendants filed written statements: Vijai Singh denied knowledge of a decree against his father and contended the Court of Wards order was not a decree and that Khub Chand may have obtained it by fraud; Khub Chand alleged the assignment to the plaintiff was for a consideration of Rs. 10,000 which was never paid (making the assignment void for want of consideration) and asserted that he later settled with Vijai Singh after receipt of process in the present suit.
The trial court framed three issues (see below), heard evidence and found: the debt was an actionable claim and the assignment completed by deed; the Court of Wards order dated 4 April 1947 was an acknowledgment of the debt and could furnish a cause of action despite the release of the estate from Court of Wards management; and that no notice of assignment had been proved as served on Vijai Singh, so the settlement by Vijai Singh with Khub Chand was valid. The trial court entered a decree for Rs. 10,000 (the amount of consideration stated in the deed of assignment) against Khub Chand and dismissed the suit against Vijai Singh.
The plaintiff appealed, challenging primarily the dismissal against Vijai Singh and seeking recovery of the full amount from him. Khub Chand did not appeal, nor was he made a party to the present appeal.
Legal Issues Presented
- Whether the agreement of assignment was without consideration, and therefore invalid?
- Whether the suit was maintainable on the basis of the order of the Court of Wards (i.e., whether that order could constitute the basis of a suit against the heir)?
- Whether defendant No. 2 (Khub Chand) had received satisfaction from defendant No. 1 (Vijai Singh) after the assignment, and if so, what was the effect of such satisfaction on the plaintiff's claim?
Arguments of the Parties
Appellant's (Plaintiff's) Arguments
- The plaintiff contended he was entitled to a decree for the full sum (stated as Rs. 11,365/7/-) against Vijai Singh based on the assignment of the Court of Wards order.
- The plaintiff relied on a notice (Ex. P. 3), a registered post-card dated 9 December 1947, said to have been sent by Khub Chand to Vijai Singh intimating the transfer; the plaintiff argued this satisfied the notice requirement under sections 130 and 131 of the Transfer of Property Act so that subsequent dealings by the debtor would be ineffective against the assignee.
- The plaintiff argued that service of the plaint and receipt of summons should be deemed notice of the assignment to the debtor, making the settlement thereafter ineffective as against the assignee (relying on an earlier decision, Ragho v. Narayan, under the old section 131).
- The plaintiff sought permission (in the appellate court) to produce additional evidence of a notice sent by registered post (a card) which the plaintiff claimed had been returned refused — this application was based on Order XLI, rule 27, CPC powers to take additional evidence.
- The appellant also advanced an argument that, where the Transfer of Property Act was not yet in force in Marwar, English law (which, he argued, allowed notice by transferee) should apply — reliance placed on a 1907 (P.R.) decision.
Respondent's (Vijai Singh and Khub Chand's) Arguments
- Vijai Singh denied knowledge of any decree against his father and asserted that the Court of Wards order was not a decree capable of forming the basis of a suit against him.
- Khub Chand pleaded that the assignment was without consideration because the agreed Rs. 10,000 payment was never paid; alternatively he asserted that after receiving summons he settled with Vijai Singh, discharging the debt as against any assignee who had not given notice.
- The respondents challenged the authenticity and proof of service of Ex. P. 3 (the registered post-card) and contended the plaintiff had not proved service of the notice to the debtor in the manner required by sections 130–131 of the Transfer of Property Act.
- The respondent contended that even if service of plaint could be treated as notice by a transferee, where the transferee’s notice is by the transferee (and not signed by the transferor), it must be shown that the transferor refused to sign; their argument relied on authorities construing section 131.
- Respondent argued that the plaintiff's suit was framed alternatively (against debtor and against transferor), and that the decree obtained by the plaintiff against Khub Chand for consideration effected the plaintiff's position so as to render the appeal against Vijai Singh incompetent.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For (as stated in the opinion) | Application by the Court (how the opinion used or treated the precedent) |
|---|---|---|
| A.I.R. 1926 Lahore 520 (and related I.L.R. authorities cited) | Relied on for the proposition that an endorsement of refusal on a returned registered letter gives rise to a presumption that the document was tendered and refused. | The court noted this authority but observed that Calcutta view is not uniform and compared it with contrary authorities; it did not apply the presumption here because of defects in proof of custody and endorsement. |
| I.L.R. 15 Calcutta 681; 17 C.W.N. 1073; 23 C.W.N. 319; 19 C.W.N. 489 | These Calcutta/related authorities were cited concerning presumptions about postal delivery and refusals of registered items. | The court recognized these as supporting the presumption that a refusal endorsement shows tender and refusal, but observed divergent authority and declined to rely on the endorsement in the present case due to absence of proof from proper custody and officer identification. |
| A.I.R. 1939 Patna 540 | Holds that where a registered letter is returned purporting to be refused by the addressee, the presumption of receipt does not apply; the endorsement of refusal weakens a presumption of receipt. | The court cited this as a contrary authority to the Calcutta view and used it to support the proposition that a returned-with-refusal endorsement prevents the presumption of receipt; the court nonetheless required proper proof of the endorsement and its maker. |
| A.I.R. 1948 Calcutta 63 | Discussed in relation to the presumption of postal delivery and how such presumption may be rebutted. | The court referred to this authority in assessing whether the refusal endorsement could be relied upon, noting that rebuttal is possible and that in the present case the defendant had not had an opportunity to deny because of how the document surfaced. |
| Ragho v. Narayan (referenced) | Relied on (under old section) for the proposition that service of plaint/summons could be deemed notice of transfer and render later payment ineffective against assignee (based on the old wording of section 131). | The court observed that Ragho v. Narayan was based on the language of the old section 131 and distinguished it because the present statutory language differs; the authority was not applied to override the present statutory text. |
| 1915 Lower Burma 10 | Authority cited for the proposition that where transferee gives notice, the notice should indicate that the transferor refused to sign (i.e., evidential requirement when notice comes from transferee). | The court noted this authority but contrasted it with other authorities (e.g., I.L.R. 33 Madras 123) and then interpreted section 131 to require that if the transferee gives notice it should be shown that the transferor refused to sign, though the refusal need not be mentioned within the notice itself. |
| I.L.R. 33 Madras 123 | Holds a contrary view that the Act does not require the transferee's notice to mention refusal by the transferor to sign. | The court observed the conflict and stated its view interpreting section 131: a transferee's notice is permissible provided it is alleged/shown that the transferor refused to sign, though the notice itself need not state the refusal. |
| A.I.R. 1922 Bombay 183 | Held that an acknowledgment made before expiry of limitation could form the basis of a suit (subject to limitation considerations). | The court reviewed this decision among others but ultimately aligned with authorities holding that a mere acknowledgment does not necessarily create a new cause of action; it distinguished facts and limitation considerations. |
| A.I.R. 1944 Bombay 19 | Followed A.I.R. 1922 Bombay 183 in treating an acknowledgment as capable of being the document on which the suit is founded where the right to sue arose on that document. | The court cited it as one strand of authority but contrasted it with other decisions and ultimately did not accept that the Court of Wards order alone could be the basis of the plaintiff's suit absent pleading of the original cause of action. |
| A.I.R. 1932 Allahabad 199 | Held an unconditional acknowledgment implied a promise to pay and could afford a new cause of action (a view not universally followed by subsequent Benches). | The court discussed this decision, noted differing views within Allahabad decisions, and treated it as part of the jurisprudential debate on whether an acknowledgment alone creates a new cause of action. |
| A.I.R. 1934 Allahabad 79 (and A.I.R. 1935 Allahabad 129) | Held that a mere acknowledgment of an older debt could not be made the basis of a suit in the absence of fresh consideration; an acknowledgment does not itself create a new contract giving rise to a fresh cause of action. | The court relied on this line to support the proposition that a mere acknowledgment (without fresh consideration or proper pleading of the original cause of action) cannot found a suit; the court adopted this view for the present facts. |
| A.I.R. 1938 Lahore 234 | Expressed the view that mere acknowledgment implying a promise to pay does not necessarily permit a suit to be founded on that acknowledgment apart from proof of consideration. | The court cited this decision and used its reasoning to support the conclusion that the Court of Wards order (an acknowledgment) did not, by itself, sustain the plaintiff's suit against the heir. |
| A.I.R. 1938 Nagpur 180 | Holds that a document which is an acknowledgment under section 19 Limitation Act cannot operate to save limitation unless executed within time and that such a document cannot itself be used as the basis of the suit; the original cause of action persists. | The court expressly agreed with the Nagpur decision and adopted its approach: acknowledgment keeps alive original cause of action but does not create a new right that can be sued upon in the absence of pleading the original cause. |
| A.I.R. 1932 Oudh 49 | Holds that acknowledgment of liability allows extension of limitation if made within time but does not create a new right; it keeps alive the original cause of action. | The court cited this authority in support of the proposition that an acknowledgment does not create a fresh cause of action, and used it in concluding the Court of Wards order could not alone support the plaintiff's suit. |
| A.I.R. 1920 Patna 161 | Held that an acknowledgment of a debt only benefits a creditor for limitation purposes and the basis of suit remains the original debt; no suit lies on a mere acknowledgment alone. | The court cited this authority and relied upon its reasoning in concluding that the order of the Court of Wards (an acknowledgment) could not be the basis of a suit when the original cause was not pleaded. |
| 33 Indian Appeals 165 (Maniram's case — Privy Council) | Discussed on the question of whether an acknowledgment implies a promise to pay; referenced in the jurisprudential debate on acknowledgments and limitation. | The court referred to its observations and to how subsequent courts had interpreted or limited Maniram's case; used as background in resolving whether an acknowledgment creates a new cause of action. |
| I.L.R. 13 Rangoon 189 | Holds that where a plaintiff claims against two defendants alternatively and obtains a decree against one, he has no cause of action left and an appeal against the other is incompetent. | The court applied this principle to conclude that having obtained a decree against Khub Chand (for the consideration), the plaintiff could not competently press his appeal against Vijai Singh on the same claim. |
| 1907 (P.R.) 9 | Relied on by appellant to support the English-law position that notice by transferee only could be sufficient where the Transfer of Property Act was not in force. | The court rejected the argument that English law should be applied instead of the Indian statute, observing that Indian statutory provisions were preferable and applicable for the questions at hand. |
Court's Reasoning and Analysis
The court proceeded through a structured legal analysis addressing evidentiary, statutory and contractual points raised on appeal. The analysis, in the order in which the court considered matters, is summarized below strictly as it appears in the opinion:
- Notice of Assignment (Ex. P. 3) and Sections 130–131 Transfer of Property Act:
- The court examined whether Ex. P. 3, a registered post-card dated 9 December 1947 and said to have been sent by Khub Chand to Vijai Singh, satisfied the written-notice requirement of section 131. Formally, Ex. P. 3 met section 131’s formalities because it purported to be signed and to state the transferee's details.
- However, the critical question was whether the notice was received or should be deemed received by Vijai Singh. The court considered conflicting authorities on postal presumption (Calcutta view v. Patna/Nagpur view) and referred to section 114 Evidence Act on permissible presumptions.
- The court concluded the endorsement of refusal on Ex. P. 3 could not be relied upon because the document was not produced from proper custody, the refusal endorsement was not shown to be made by a post-office officer, and the document had not been put in issue at the proper stage (it surfaced during cross-examination). Therefore no effective proof of service on the debtor was established; the trial court’s finding that notice was not proved was upheld.
- Service of Plaint and Summons as Notice:
- The court considered the appellant’s contention that service of the plaint (after filing on 24 July 1948 and service on 19 August 1948) should be treated as notice of assignment. It noted earlier authorities (Ragho v. Narayan) were based on the old wording of section 131 and that the present provisions are different.
- The court held that where notice is given by the transferee (i.e., not signed by the transferor), it must be alleged or shown that the transferor refused to sign; the notice need not itself contain that allegation but proof must exist that the transferor refused to sign. The plaint did not establish the required facts and, in any event, could be read as indicating the plaintiff was willing to relinquish claims to the extent of realisations by Khub Chand.
- Application to Produce Additional Evidence in Appeal:
- The appellant asked leave to produce further evidence that a registered post-card notice by the transferee had been returned refused. The court invoked Order XLI, rule 27, CPC and observed that the appellant gave no good reason why the document had not been produced in the lower court; absent good cause the appellate court would not admit the fresh evidence. The application was refused.
- Applicability of the Transfer of Property Act in Marwar and Use of English Law:
- The appellant argued the Transfer of Property Act had not been brought into force in Marwar at the time of suit, so the English law should govern, under which transferee notice by transferee might suffice. The court rejected this contention, noting the Indian statutory framework is preferable and that the matter had been dealt with under the Indian statute.
- Validity of Assignment and Challenge for Want of Consideration:
- The court rejected the lower court’s broad statement that an assignment, once executed, could not be impeached for lack of consideration. The court explained the words “whether with or without consideration” in section 130 allow assignments by gift and similar means but do not mean assignments are immune to ordinary contractual defenses. The assignment could be impeached for want of consideration in principle.
- On the facts, however, the court found the transferor (Khub Chand) failed to prove non-payment of consideration. Multiple witnesses for Khub Chand were examined, but the court found their account lacking in credibility on the point that no consideration had passed; in the court’s view the transferor had not established that he did not receive consideration.
- Settlement Between Debtor and Transferor (Issue of Satisfaction):
- The court examined Khub Chand’s own evidence of a settlement with Vijai Singh after service of process and held that Khub Chand’s uncorroborated testimony was insufficient to prove full cash payment; nonetheless, some form of settlement was established by his statement.
- The court observed that if the debtor had indeed settled and satisfied the debt by payment/remission/contract with the transferor without notice to the transferee, such settlement would be effective as against the transferee (in absence of proved notice).
- Whether the Court of Wards Order Could Be the Basis of Suit:
- The court analyzed the character of the Court of Wards order (Ex. P. 2 dated 4 April 1947). It described the order as an acknowledgment of the debt within the administrative scheme of the Marwar Court of Wards Act, which provides for calling in and adjudicating claims against a ward’s estate and ordering registration of claims among unsecured creditors.
- Relying on multiple authorities (Nagpur, Oudh, Patna, and certain Allahabad/Lahore decisions), the court accepted the view that a mere acknowledgment (of an antecedent debt) does not create a fresh cause of action in the absence of fresh consideration or pleading of the original cause of action. The Court of Wards order could not be used as the sole basis of a suit where the plaintiff had not pleaded the original cause of action against the heir and where the defendant specifically denied its sufficiency.
- Applying this to the facts, the court held the plaintiff failed to plead and prove the original facts giving rise to the debt against Mahabbat Singh; consequently the Court of Wards acknowledgment alone could not sustain the suit against Vijai Singh.
- Alternative Relief and Effect of Decree Against Transferor:
- The court addressed whether the plaintiff’s decree against Khub Chand (for Rs. 10,000) rendered the appeal against Vijai Singh incompetent. The court reasoned that the plaintiff had pursued both remedies in the suit — relief against the debtor and, alternatively, a claim against the transferor for amounts realised — and that a party who obtains a decree against one alternative defendant may be left with no cause of action against the other. The court relied on I.L.R. 13 Rangoon 189 for this proposition and held that by obtaining the decree against Khub Chand the plaintiff could not competently press the claim against Vijai Singh on appeal.
Holding and Implications
Final Holding: This appeal fails and is dismissed with costs.
Direct consequences for the parties (as stated in the opinion):
- The trial court's decree in favour of the plaintiff against Khub Chand for Rs. 10,000 (the amount of consideration stated in the deed of assignment) remains effective.
- The plaintiff's claim against Vijai Singh (the debtor/heir) fails: the Court of Wards order was treated as an acknowledgment that could not, by itself and without pleading the original cause of action or fresh consideration, be the basis of a suit against the heir; additionally, the plaintiff had obtained a decree against Khub Chand which the court regarded as precluding competent prosecution of the appeal against Vijai Singh.
Broader implications:
The opinion applies and reconciles various authorities on (a) when a returned registered letter with a refusal endorsement gives rise to a presumption of tender and refusal; (b) the evidentiary and formal requirements of notice of assignment under sections 130–131 of the Transfer of Property Act; and (c) the legal effect of acknowledgments made by administrative bodies such as the Court of Wards. The court concluded on the facts that the plaintiff had not proved notice to the debtor, had not pleaded the original cause of action underlying the Court of Wards entry, and could not press the appeal against the debtor after having obtained a decree against the transferor. The opinion does not purport to establish a novel legal principle beyond its application of existing authorities and statutes to these facts.
End of summary — all content above is derived exclusively from the provided opinion and does not add information not present in that text.
Bapna, J.:— This is an appeal by the plaintiff in a money suit against one of the defendants.
2. The appellant, Kanraj, filed a suit on the 24th of July, 1948, against the respondent, Vijai Singh, Jagirdar of Ramseen, and one Khub Chand on the allegations that Khub Chand had secured a decree on the 4th of April, 1947, against Mahabbat Singh, father of Vijai Singh, for recovery of Rs. 11,359/7/- (the correct figure is Rs. 11,365/7/-), from the Court of Wards, Jodhpur, and Khub Chand thereafter made an assignment of that decree in favour of the appellant on the 25th of July, 1947. It was alleged that the defendant, Vijai Singh, being the heir and legal representative of Mohabbat Singh, and being in possession of the property left by Mohabbat Singh, was liable to pay the amount of the decree, but had refused to do so, and as the Thikana of the defendant was no longer under the Court of Wards, the suit had to be filed by the plaintiff. It was prayed (1) that a decree for recovery of Rs. 11,364/7/- be passed in favour of the plaintiff against Vijai Singh, and (2) that, if defendant No. 2, Khub Chand, had recovered any amount from Vijai Singh towards the decree of the Court of Wards, a decree for such amount be passed against Khub Chand. Interest was claimed from the date of the suit till realization.
3. Vijai Singh by his written statement dated the 24th September, 1948, denied any knowledge of the decree having been passed against his father by the Court of Wards, adding that the order of the Court of Wards, dated the 4th of April, 1947, relied upon by the plaintiff, did not amount to a decree. It was pleaded that the said order of the Court of Wards could not be made the basis of the suit against the defendant, and that Khub Chand had, by means of some fraud, obtained the order of the Court of Wards, which was not binding on him.
4. Khub Chand filed a written statement on the 7th of February, 1949 alleging that the assignment had been executed on a promise of payment of Rs. 10,000/-, which sum was never paid by the plaintiff to Khub Chand, and that, therefore, the agreement of assignment was without consideration and void. It was also alleged that on receipt of the summons of the present suit, the defendant realized the deception caused upon him by the plaintiff, and he made a settlement with the Jagirdar in respect of the debt evidenced by the order of the Court of Wards, and, therefore, the plaintiff was not entitled to any relief.
Only three issues were framed, viz.,
(1) Whether the agreement of assignment without consideration, and, therefore, invalid?
(2) Whether the suit was main-tainable on the basis of the order of the Court of Wards?
(3) Whether the defendant No. 2 had received satisfaction from the defendant No. 1 after the assignment, and if so, what was its effect?
The trial court, after evidence, held that the debt against Vijai Singh was an actionable claim, and its transfer was complete by execution of the deed of assignment, and that therefore any objection as to the invalidity of the transfer for want of consideration could not be agitated under the provisions of section 130 of the Transfer of Property Act. On the second issue it was held that the order of the Superintendent, Court of Wards, dated the 4th of April, 1947, was an acknowledgment of the debt in question, which could not be challarged by the holder of the estate even after the release of the estate from the management of the Court of Wards under sections 35 and 47 of the Marwar Court of Wards Act, and that, therefore, the said acknowledgment furnished a valid cauce of action. On the third issue it was held that no notice of assignment had been prove to have been served on Vijai Singh, and, therefore, the settlement made by Vijai Singh with Khub Chand was valid. As a result, the Court passed a decree for Rs. 10,000/- which was the amount of consideration for the transfer of the actionable claim, against Khub Chand, and the suit was dismissed against Vijai Singh.
5. The plaintiff has come in appeal, and it is urged that he is entitled to a decree for recovery of Rs. 11,365/7/-, the entire sum, from Vijai Singh. Khub Chand has not filed any appeal, nor was he made party in the present appeal preferred by Kanraj, plaintiff.
6. The plaintiff has challenged the finding on issue No. 3, while the respondent preferred arguments in support of the decree by challenging the findings on issues Nos. 1 and 2, besides other objections, which will be considered hereafter.
7. It was argued on behalf of the appellant that a notice, Ex. P. 3, written on a post-card w?s sent by registered post by Khub Chand addressed to Vijai Singh on the 9th of December, 1947, intimating that Khub Chand had transferred the debt to the plaintiff, Kanraj. The lower court observed in respect of this document that it had not come from proper custody, and had not been proved. It is admitted by the plaintiff that the sender of this notice was Khub Chand and in the ordinary course it should have been returned to him by the Post Office on refusal to take delivery by the addressee. It is explained by the plaintiff in his evidence that his son, Vijai Raj, was the lawyer for Khub Chand, and the sender's address was noted as C/o Vakil Vijai Raj, and when the notice after refusal happened to be delivered to Vijai Raj, the latter passed it on to the plaintiff. While there is no doubt that Vijai Raj acted very improperly in giving to his father a document which he had received for his client, who is a defendant in this case, but that does not affect the merits of the case. The sole point is whether any notice was given to the debtor, Vijai Singh, as required by sections 130 and 131 of the Transfer of Property Act. Sub-section (1) of section 130 of the Act lays down the mode of transfer of an actionable claim, and its effect, viz., that the transfer shall be complete and effectual upon the execution of the instrument of transfer, and that thereupon all the rights and remedies of the transferor shall vest in the transferee. There is, however, a proviso to that sub-section, which lays down that notwithstanding the sights created in the transferee, as mentioned in sub-section (1), every dealing with the debt or actionable claim by the debtor except where he is a party to transfer or has received express notice, as provided later on, shall be valid as against such transfer of the debt. The provision for notice, referred to, is found in section 131 of the Transfer of Property Act, which lays down that every notice of transfer of an actionable claim shall be in writing signed by the transferor or his agent duly authorised in this behalf or, in case the transferor refuses to sign, by the transferee or his agent and shall state the name and address of the transferee. The notice, Ex. P. 3, purports to be given by Khub Chand to Vijai Singh intimating the transfer of the debt, and, therefore, fulfils the formalities required by section 131 of the Transfer of Property Act. The only point that remains to be determined is whether this notice was received by Vijai Singh or should be deemed to have been received by him. It was urged that the endorsement signifying refusal of the addressee to receive the same should lead to a presumption that it was tendered but refused. Reliance is placed upon A.I.R 1926 Lahore 520, (1) in which I.L.R 15 Calcutta 681(2) 17 C.W.N 1073 (3) and 23 C.W.N 319 (4) were followed. A contrary view has been taken in A.I.R 1939 Patna 540. (5). In this Patna case a notice was sent by registered post but was received back with an endorsement that the addressee had refused to accept it. But the peon who made the endorsement of refusal was not examined nor his handwriting had been proved. Their Lordships held that “a letter if posted and not received back through the Dead Letter Office may be presumed to have been received by the addressee, but this presumption does not apply where the letter purports to have been returned as being refused by the addressee.” Reliance was placed on a Calcutta case, 19 C.W.N 489 (6). The same view was taken in Nagpur in 48 I.C 901 (7).
8. The Calcutta view does not appear to be uniform, and the two divergent views have already been referred. Under section 114 of the Evidence Act, the Court may presume the existence of any fact which it thinks likely to have happened, regard being had to the common course of natural events, human conduct, and public and private business in their relation to the facts of the particular case.
9. The postal service in India is, on the whole, fairly satisfactory, and if an endorsement purports to be by an officer of the Post Office that the addressee had refused to receive the document, it can be presumed chat the document was tendered and refused. Such presumption can be rebutted, and in proper cases only by a denial by the addressee. Reference may be made to A.I.R 1948 Calcutta 63. (8). In the present case the defendant, Vijai Singh, had no opportunity to deny, since the notice was not referred to in the pleadings, nor produced before the issues, but was put to Khub Chand during his cross-examination. The document itself bears three endorsements, dated 19th, 20th and 26th December, 1947, that the addressee was not found. The endorsement of the 26th is signed by one Sohan Lal. The endorsement of refusal is dated 22nd December, and an illegible signature appears, which may or may not be in respect of the said endorsement. There is nothing to show that the endorsement of ‘refusal’ was made by an officer of the Post Office. The document was not produced from proper custody in proper time, and no reliance can be placed on the said endorsement.
10. It was next argued that the suit was filed on the 24th 01 July, 1948, and the summons was served both on Vijai Singh and Khub Chand on the 19th of August, 1948. The written statement of Vijai Singh, which was filed on 24th September, does not mention any settlement with Khub Chand, and Khub Chand, who takes a plea of the settlement in his written statement on the 7th of February, 1949 clearly says that he made a settlement after the receipt of the summons in the present suit. It was urged that the receipt of the copy of the plaint should be deemed to be a notice of the transfer of the actionable claim, and any settlement made by the debtor thereafter should be held to be ineffective against the assignee of the debt. Reliance was placed on Ragho v. Narayan . The said decision was based on the language of section 131 of the old Act. The old section did not validate payment by the debtor if he was a party to or “otherwise became aware of” or had received express notice of the transfer. The language of the present section 130 is, however, different, and the protection is taken away only if the debtor is a party to the transfer or has received express notice thereof as provided in section 131.
11. It was urged on behalf of the respondent that the plaint, even if it be assumed to be a notice of transfer was not on given by the transferor, and although nothing is mentioned in the plaint, the fact of the existence of Ex. P. 3 showed that the transferor had till that date never refused to sign. The notice by the plaint was, therefore, not valid. Reliance was placed upon 1915 Lower Burma 10 , in which it has been held that in the case of a notice by the transferee, mention must be made in the notice itself that the transferor refused to sign the notice. A contrary view has been taken in I.L.R 33 Madras 123 , and their Lordships observed at page 130 that the Act does not require that the circumstance of the refusal by the transferor to sign the notice should, be mentioned in the transferee's notice. In my opinion, according to the plain language of section 131, the notice of transfer is to be given by the transferor and if given by the transferee, it should be alleged or shown that the transferor had refused to sign the notice, although that circumstance need not be mentioned in the notice.
12. Assuming that the service of summons and delivery of a copy of the plaint was a notice of assignment of the debt by the transferee, it could also be understood therefrom that the plain-til was willing to relinquish his claims against Vijai Singh to the extent of realisations made by Khub Chand. This is evident from the prayer that in respect of such realisations by Khub Chand the plaintiff was willing to have a decree against Khub Chand rather than against Vijai Singh.
13. Mr. Hastimal, who appeared for the appellant, made an application that he may be allowed to produce additional evidence of the fact that a notice had been given by a registered post card by the transferee on the 9th of December, 1948, the same date on which Ex. P. 3 was written by Khub Chand, but that such notice was also refused by the debtor, and returned to the sender. The alleged notice, after its return, remained all along with the plaintiff, and no reason is given why proper allegations were not mentioned in the plaint, and why the document was not produced in the lower court. The powers of the Apellate Court to take additional evidence are given in Order XLI, rule 27, of the Code of Civil Procedure, and unless good cause is shown for its non-production in the lower Court, it cannot be allowed to be produced in the Appellate Court. The prayer cannot be accepted.
14. It was next argued that the Transfer of Property Act was only brought into force in Marwar in 1949, and, therefore, the provisions of section 130 and 131 of the Transfer of Property Act were not applicable to the present suit filed on 24th July, 1948, and that as soon as the debt had been assigned, the transferee had alone the right to recover the same, and any payment made by the debtor to the transferor after the filing of the suit should be held to be of no consequence as against the transferee. The above contention was also raised in support of an argument that in places where the Transfer of Property Act was not in force, the English law was administered as a matter of justice, equity and good conscience, and that under the English law a notice by transferee only was sufficient, and that the notice by service of a copy of the plaint should be sufficient. Reliance was placed on 1907 (P.R) 9. .
15. It may be observed that in England the common law rule is no longer in force, and the matter is now regulated by Statute, and if the assistance of the Statutes have to be taken, it would be far more consonant with justice, equity and good conscience to rely upon the Indian Statute rather than the English Statute, and the matter, from the point of view of the Indian Statute, has already been discussed.
16. As to the first aspect of the case; if the provisions of the Transfer of Property Act were to be left out of account, the general principles of the law of contract would apply, and the promisor cannot be held liable to a third party not privy to the contract. In order that the promisor may become liable to a third party, it would require the consent of the promisor, the promisee and the third party so that the original contract would be discharged, and a new contract between the third party and the promisor would come into existence, vide section 62 of the Contract Act. In the present case, the debtor was no party to the contract between Khub Chand and the plaintiff, and on general principles of contract, the plaintiff is not entitled to succeed against Vijai Singh.
17. It was next argued by Mr. Hastimal that the finding of the learned District Judge that Vijai Singh had paid up the amount to Khub Chand is not supported by reliable evidence, and if the alleged settlement may only be a promise to pay in future, the plaintiff-assignee does not lose his remedy against the debtor.
18. It is true that the debtor did not, at any stage, take the plea that he had paid the entire amount of Rs. 11,365/7/- to Khub Chand. Khub Chand had taken the plea that he settled the account with the debtor without disclosing whether he had received the amount in cash or made any remission or entered into a contract for payment in future. The entire evidence on this point consists of the statement of Khub Chand alone. He was not cross-examined by the plaintiff and made to disclose what settlement he had made. The evidence of Khub Chand is in sufficient to prove that the debtor paid up the debt in cash but some sort of settlement can be held proved by the statement of Khub Chand. The point can be of importance if the plaintiff were willing to step in the shoes of Khub Chand with respect to the new contract of the discharge of the debt that may have been made the plaintiff was unwilling to adopt that contract as he did not know where it may land him and the lower court, therefore, did what was most beneficial to the plaintiff and gave him decree for the full amount of consideration mentioned in the deed of assignment. The plaintiff's grounds of appeal, thus have no force.
19. The respondent argued certain other points also in support of the decree. It was argued that the assignment was without consideration, and, therefore, invalid, and that the lower court had made a mistake in the interpretation of section 130 of the Transfer of Property Act, in holding that the plea could not be raised after the execution of the deed of assignment. The relevant portion of section 130 of the Act reads as under.
“The transfer of an actionable claim ‘whether with or without consideration’ shall be effected only by the execution of an instrument in writing signed by the transferor or his duly authorized agent, and shall be complete and effectual upon the execution of such instrument, and thereupon all the rights and remedies of the transferor, whether by way of damages or otherwise, shall vest in the transferee, whether such notice of the transfer as is hereinafter provided be given or not:”
The words “whether with or without consideration” only mean that the assignment can be by means of sale, mortgage, or by means of a mere gift, and the words “shall be effected only by the execution of an instrument in writing” mean that parole assignment is not valid. The words “shall be complete and effectual upon the execution of such instrument” mean that it takes effect from the execution of the instrument irrespective of the notice to the debtor so far as the transferor and the transferee are concerned. It does not mean that the assignment once having been executed cannot be challenged on grounds, including want of consideration, on which any other contract can be impeached. The view of the lower court that after the assignment had once been executed, it cannot become invalid for want of consideration is incorrect. The plea, however, does not succeed on merits. On behalf of Khub Chand three witnesses, viz., Khub Chand, D.W 2, Achla, D.W 3, and Hansa, D.W 1, have given evidence on this point. Khub Chand states that he asked Vijai Raj Vakil, son of the plaintiff, to put his decree in execution, whereupon he suggested that it would be more convenient to do so if it were transferred in favour of his father, and thereupon he executed Ex. P. 1, the deed of assignment, and it was agreed that the money would be paid to him after verification of the assignment in court. He states that he was never taken to the court thereafter and when he demanded the money he was put off from time to time and he was ultimately told that he would be paid on realisation from the debtor. Achla, D.W 3, is an attesting witness. He states that no consideration was paid at the time of the execution of the assignment and Kanraj agreed to pay it 4 or 5 days later. Hansa, D.W 1, refers to an occasion when Khub Chand demanded money from Kanraj at the shop of Tara Chand and Kanraj replied that he would pay when the amount was realised in the decree. The story does not carry credence, since, as would be discussed more fully, the order of the Court of Wards was not a decree, and could not be put into execution, and an assignment of that order did not require any verification by court. If the assignment was only for purpose of facilitating execution of the alleged decree, there was no occasion for payment of the consideration of Rs. 10,000/-, mentioned in the deed of assignment. Khub Chand, in cross-examination, admits having written out and posted Ex. P. 3, the notice of transfer of the debt for service on Vijai Singh, and it is dated 9th December, 1947. Khub Chand could not be expected to have given this notice five months after the deed of assignment, if he had not received consideration by that time, and was being put off from time to time. Tara Chand has come in rebuttal as P.W 3, and he denies any talk as aforesaid at his shop. Kanraj plaintiff asserts having made the payment of consideration. In my opinion, the transferor has failed to prove that he did not receive consideration. The plea was raised by Khub Chand, and he has not filed any appeal.
20. It was next argued that the order of the Court of Wards dated 4th April, 1947, is only an acknowledgment and cannot be made the basis of the suit. The argument is that the liability of the defendant arose on the debt alleged to have been advanced to the father of the defendant, and order of the Court of Wards was at best only an acknowledgment, which did not give rise to any fresh cause of action and the suit, as framed, was not main-tinaable. On behalf of the respondent reliance was placed on A.I.R 1938 Nagpur 180, A.I.R 1932 Oudh 49 and A.I.R 1920 Patna 161.
21. The point seems to be of considerable importance, and my learned brother informs me that he has referred another case coming up before him to a Division Bench. It is, therefore, being dealt with at some detail.
22. The relevant order of the Court of Wards, dated 4th of April, 1947, Ex. P. 2, is as under:—
“This is a claim of the plaintiff for Rs. 11,359/7/- against Thikana Ramseen on the basis of the Khata executed by the Thakur of Ramseen. The legal adviser had denied the claim on the ground that there is no entry of the transaction in the Thikana Bahies. The plaintiff has produced 7 witnesses 10 prove the execution of the Khata. The Thikana Vakil has produced no evidence. As the claim of the plaintiff has been proved, it is ordered that the said sum plus Rs. 6/- may be registered in the list of the unsecured creditors of the Thikana according to rank.”
These proceedings were taken by the Superintendent, Court of Wards in accordance with certain provisions of the Marwar Court of Wards Act, 1923. Under section 32 of the said Act, a notice is required to be published calling upon all persons having claims against the ward to notify the same within six months and on presentation of claims, an officer is to be appointed to conduct an inquiry and to decide which of the claims notified are to be allowed and which are to be disallowed in whole or in part and his proposal is required to be confirmed by the Court of Wards. Under section 39, directions are given for the application of the income of the estate of the ward and certain classification is made as to the priority of objects on which the income can be spent. The liquidation of debts comes under class II and ranks third in that class. According to the scheme of the Act, the claims are called in order to arrive at correct record of the indebtedness of the ward, and the decision to allow any promise to pay and indeed the contingency of payment may or may not arise as the disbursements for purposes of class I and certain other purposes of class II rank in priority to the debts. The Act does not prevent any creditor of the ward from filing a suit against the ward, but only provides for a notice being given prior to preferring the claim in court, vide section 49. The order of the Court of wards, as stated above, is no better than an acknowledgment of debt. The lower court has held that an acknowledgment can be made the basis of a suit as the discretion exercised by the Court of Wards in any suit cannot be challenged in a civil court. The learned District Judge has referred to sections 32, 35 and 47 of the Court of Wards Act. Sections 32 and 35 relate to the notice of claimants and the investigation of claim, and section 47 lays down that the exercise of any discretion conferred on the Court of Wards by the Act cannot be questioned in a civil court. What this means in relation to the facts of this case is that while it may not be questioned why the Court of Wards made the acknowledgment yet it does not follow that it created any new rights in the creditor. The acknowledgment would remain there with all its legal effects and disabilities. The learned counsel for the appellant relied upon A.I.R 1922 Bombay 183, 1944 Bom. 19 1932 All. 199 and 1938 Lah. 234 in support of the proposition that an acknowledgment can form the basis of a suit.
23. In A.I.R 1922 Bombay 183, debts were incurred in July and September, 1914, and an account was made up on the 29th June, 1917, on which date the acknowledgment was signed. After referring to 33 Indian Appeals 165, their Lordships held that an acknowledgment was made before the expiry of the period of limitation, there was no reason why such an acknowledgment should not form the basis of a suit. This case was followed in A.I.R 1944 Bombay 19 where the facts giving rise to the liability were mentioned, and an acknowledgment of 17th March, 1936, was relied upon as the basis of suit. It was held that the right of the plaintiff to sue arose solely on that document, and could, therefore, be the basis of suit. Their Lordships, however, observed that they were not dealing with a case of a time-barred debt to which section 25, sub-section (3) of the Contract Act would become applicable. In A.I.R 1932 Allahabad 199, Justice Niamatullah held that an unconditional acknowledgment implied a promise to pay and afforded a new cause of action to the obligee, and in support of his view relied on the observations of their Lordships of the Privy Council in 33 Indian Appeals 165 Sulaiman C.J, however, did not subscribe to this view, and explained that the observations of their Lordships of the Privy Council in Maniram's case (Supra), viz., that an unconditional acknowledgment always implied a promise to pay, was an exposition of the English law. It was pointed out that in Maniram's case (Supra) the only point in dispute was whether certain words amounted to an acknowledgment of liability within the meaning of section 19 of the Limitation Act. The learned Chief justice observed that
“Maniram's case cannot be extended so as to be an authority for the proposition that in India every unconditional acknowledgment implies a promise to pay to such an extent as to override the provisions of the Limitation Act, the Contract Act, the Stamp Act or the Evidence Act.
In order to enforce the law of limitation strictly, the legislature has thought fit to throw on the creditor the burden of proving that the acknowledgment was made within time. Mere acknowledgment is not enough under section 19 unless it is shown that it has been made before the expiration of the prescribed period. It is, therefore, not sufficient for the plaintiff to merely prove the acknowledgment of liability to pay a money debt and throw the burden of showing that the acknowledgment was made beyond time on the debtor.”
The view was brought out with greater force in AIR 1934 Allahabad 79 by a different Bench, where it was clearly held that a mere acknowledgment of an older debt could not be made the basis of the suit. In A.I.R 1935 Allahabad 129, which was again a judgment to which Sulaiman C.J was a party, the learned Chief Justice explained his earlier case, A.I.R 1932 Allahabad 199, and dissented from the view taken by Niamatullah J., and the view taken in A.I.R 1934 Allahabad 76 was approved. It was held that “where there is no fresh consideration proceeding from the promisee, the acknowledgment cannot be treated as an agreement which may give rise to a fresh cause of action”. In A.I.R 1938 Lahore 234, Dalip Singh J. observed,
“I do not think that this Court has ever held that merely because an acknowledgment implies a promise to pay it can form the basis of a suit, apart from proof of consideration.”
Din Mohammad J. held the particular entry to be an express promise to pay within the meaning of section 25(3) of the Contract Act. The third Judge, Coldstream J., although of different opinion, did not like to dissent.
24. On behalf of the respondent, reliance is placed on A.I.R 1938 Nagpur 180, A.I.R 1932 Oudh 49, and A.I.R 1920 Patna 161.(9).
25. In the Nagpur case, Bose J. took into consideration the decision in A.I.R 1922 Bombay 183 and observed that the question was not discussed at length in that case. His Lordship held that the document sued upon was an acknowledgment under section 19 of the Limitation Act, and observed.
“It cannot operate to save limitation unless it has been executed within time; also in such a case, the suit must be founded on the original cause of action. The document itself cannot be used as basis of the suit,”
In the Patna case , Jwala Prasad J. held that
“an acknowledgment of a debt only enures to the benefit of the creditor for the purpose of saving limitation if it is made before the original debt is time-barred, but the basis of the suit is always the original debt. No suit can be maintained on a mere acknowledgment of a debt.”
Several cases in support of the above view are cited in the said authority. In the Oudh case it was held that an acknowledgment of liability only allowed extension of limitation if made before the expiration of the period prescribed. It did not create a new right but only allowed a new period to run from the date of the acknowledgment. Such acknowledgment does not operate as a new contract but only keeps alive the original cause of action. Maniram's case was referred to and explained in this judgment.
26. With great respect I agree with the view, which has been taken in the Nagpur, (Supra) Oudh. and Patna (Supra) cases, mentioned above, and which is also supported by A.I.R 1934 Allahabad 76, and certain observations in A.I.R 1938 Lahore 234. In the present suit, there is no mention of the original cause of action, and the defendant Vijai Singh had clearly pleaded that it could not form the basis of a cause of action. He had also pleaded that he did not admit that consideration had passed in respect of the entries which were submitted before the Court of Wards. It was the duty of the plaintiff to plead all the facts which gave rise to the debt against Mohabbat Singh. In the absence of such allegations, the plaintiff cannot succeed against Vijai Singh, and no decree can be passed against him.
27. One more point was argued on behalf of the respondent. It was con-tended that the plaintiff's suit was in the alternative, and that as he obtained a decree against Khub Chand for the full amount of consideration paid by the plaintiff, his appeal against Vijai Singh was incompetent.
28. On behalf of the appellant it was explained that his suit not against Khub Chand in the alternative, but his main claim was against Vijai Singh on the assignment. He, however, impleaded Khub Chand and claimed such amount only against him as he may have received after the assignment. It is, however, conceded that the plaintiff could not claim a decree against Vijai Singh while retaining the one against Khub Chand. The point is not free from difficulties as to what would be the rights of the plaintiff in such a case as this. It is, however, clear that the plaintiff sought relief against Vijai Singh on the basis of a deed of assignment of a certain debt, and he could obtain a relief against Vijai Singh on proof of the debt. It was not necessary for the plaintiff in the suit to have claimed any relief against Khub Chand. The plaintiff could only claim a relief against Khub Chand for the amount realised by him in case the plaintiff conceded that any dealing with the creditor by the debtor in the meanwhile was acceptable to him. The remedy could, however, be claimed either against the debtor or against the transferor, but not against both, in respect of the same amount. The trial court in giving a decree for Rs. 10,000/- seems to have disregarded the actual settlement, made by the debtor with the transferor, which may not have been of advantage to the plaintiff, but instead gave a decree for a full amount of consideration, which could be done as if on a breach of contract or the assignment having fallen through by the act of the transferor. This relief could be given only as an alternative to the grant of relief against debtor. The plaintiff, while filing the present appeal, has not made Khub Chand a party to the appeal, nor has he specifically mentioned in his grounds of appeal that he was willing to relinquish the decree against Khub Chand, and would press for a consideration of his case against Vijai Singh only. It is obvious that the plaintiff cannot retain the decree against Khub Chand and also press his claim against Vijai Singh. It has been held in I.L.R 13 Rangoon 189 that where the plaintiff claims from the two defendants in the alternative and gets a decree against one, he has no cause of action left, and an appeal against the other is incompetent. The principle on which the Rangoon case (Supra) was decided appears to be applicable in the present case. In my opinion, the plaintiff having obtained a decree against Khub Chand for the amount of consideration paid by him as on a breach of contract of assignment, is incompetent to assert his claim against Vijai Singh under the same contract.
29. At one stage of the case the learned counsel for the appellant prayed that Khub Chand be now made a party respondent, and under the provisions of Order XLI, rule 33, of the Code of Civil Procedure, the decree against him be set aside, and his claim against Vijai Singh may be decreed. This) was perhaps on the supposition that the plaintiff could claim relief against Vijai Singh on the merits. As discussed above, his claim against Vijai Singh cannot succeed, and in the circumstances the plaintiff has got all that he could by a decree against Khub Chand. It is unnecessary to discuss whether Court can great relief under Order XLI, rule 33, in the manner contended by counsel.
As a result, this appeal fails, and is dismissed with costs.
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