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Smart Summary

Factual and Procedural Background

Gendalal, Jaidayal and Shankarlal sued in the Munsiff Court at Dhar for redemption of pledged ornaments, describing themselves as owners of the shop "Surajmal Mamraj". The defendant denied the claim and pleaded that the business was a joint family business and that all family members had not been impleaded, rendering the suit not maintainable. The Munsiff initially held that other family members were necessary parties but ultimately decreed return of the ornaments on payment of Rs. 878. Both parties appealed to the District Judge; the District Judge modified the decree to direct payment of Rs. 2 to the plaintiffs. The plaintiffs filed a second appeal to this Court; the defendant did not file cross-objections. A Single Judge (Rege, J.) took the view that the transaction related to joint family business and, because other major coparceners were not joined, the suit was not maintainable; he therefore did not consider the plaintiffs' grounds. The plaintiffs obtained leave and filed this special appeal against the Single Judge's decision.

Legal Issues Presented

  1. Whether persons who manage a joint family business (here, Gendalal, Jaidayal and Shankarlal) can sue in their own names on behalf of the joint family without impleading all coparceners.
  2. Whether omission in the plaint to describe plaintiffs as managers or members of the joint family affects the maintainability of the suit (i.e., whether such misdescription is fatal).
  3. Whether a respondent who does not file an appeal or cross-objections can nevertheless urge non-joinder of co-parceners as fatal to the suit in this Court.

Arguments of the Parties

Appellants' Arguments

  • The three plaintiffs, as managers of the joint family business, were entitled to sue on behalf of the family and it was not necessary to implead other family members.
  • The omission to describe themselves in the plaint as managers of the joint family business was a misdescription that could be corrected and was not substantial.
  • Because the respondent did not file cross-objections in this Court, it could not urge that non-joinder of co-parceners was fatal to the plaintiffs' suit.

Respondent's Arguments

  • The defendant pleaded that the business was a joint family business and that all members had not been included, contending non-joinder rendered the suit not maintainable.
  • It was pointed out that the plaint did not state the plaintiffs were managers or members of a joint Hindu family; the plaintiffs sued in their personal names only.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
‘Venkata Rao v. Satyanarayanamurty’, AIR 1943 Mad 698 (FB) (A) Answered the contention concerning a respondent's ability to support the decree when not filing cross-objections (i.e., on the effect of non-joinder raised by a respondent who has accepted the decision below). The Court held that this Full Bench decision sufficiently answers the point and agreed with its principle as to a respondent supporting the decree and the related contention on non-joinder.

Court's Reasoning and Analysis

The Court accepted the uncontested statement of Shankarlal that he, Gendalal and Jaidayal were the managers of the joint family business; this statement was not rebutted by the defendant and opposing counsel did not dispute their managerial status. Given that the plaintiffs were the accredited managers, the Court reasoned they could sue in their own names on behalf of the joint family. The failure to describe themselves in the plaint as managers or members of a joint Hindu family was characterized as a mere misdescription capable of correction and not affecting maintainability. Consequently, the Single Judge was incorrect in holding the suit should be dismissed for non-joinder of co-parceners. The Court noted O.41, R.22 CPC (permitting a respondent to support the decree appealed from) in explaining that a respondent who resists further relief is, in effect, supporting the decree to the extent the lower court disallowed the appellant's claim; and, with reference to the Full Bench decision cited, indicated that the respondent's procedural posture on appeal did not justify dismissing the plaintiffs' appeal on non-joinder grounds. Having reached these conclusions, the Court found it unnecessary to decide further arguments on the effect of the respondent's failure to appeal or file cross-objections, but indicated agreement with the Full Bench authority on that point.

Holding and Implications

The Single Judge's decision is set aside. The Court held that the plaintiffs, being the accredited managers of the joint family business, could sue in their own names on behalf of the family and that omission to describe them as such in the plaint did not render the suit unmaintainable.

Implications: The Civil Second Appeal No. 62 of 1949 preferred by the plaintiffs is to be heard by a Single Judge on the grounds raised in the appeal. There is no order as to costs. The opinion does not purport to lay down a novel, broader precedent beyond the application in this dispute.

    Gendalal v. Nanalal .

    Dixit, J.:— The circumstances giving rise to this Special Appeal directed against a decision of Single Judge of this Court are that Gendalal, Jaidaval and Shankarlal instituted a suit in the court of Munsiff, Dhar, for redemption of certain pledged ornaments. In the body of the plaint the plaintiffs described themselves as owners of the shop ‘Surajmal Mamraj’. The defendant while denying the plaintiffs' claim on merits also pleaded that the business carried on by the plaintiffs was a joint family business and that as all the members of the family had not been included in the suit as plaintiffs, the suit was not maintainable.

    2. The learned Munsiff first held that the other members of the joint family were necessary parties and ought to have been impleaded. But in the final judgment he came to the conclusion that the non-joinder of the other members of the family was not fatal to the suit and passed a decree directing the defendant to return the pledged ornaments after receiving from the plaintiffs Rs. 878. The plaintiffs then appealed to the Court of the District Judge, Dhar. The defendant also filed a cross-appeal. The learned District Judge modified the decision of the trial Court directing the defendant to pay Rs. 2 only to the plaintiffs. The plaintiffs then filed a second appeal to this Court. The defendant did not file any cross-objections. Rege, J., who heard the second appeal took the view that the transaction in respect of which the plaintiffs sued related to joint family business: that besides the plaintiffs there were other major coparceners and as they had not joined in the suit as plaintiffs, the suit was not even maintainable and that, therefore, the decision of the District Judge which had become final by reason of the defendant not appealing could not be disturbed.

    3. In this view of the matter the learned Single Judge did not consider the grounds taken by the plaintiffs in their second appeal. The plaintiffs have now filed this special appeal with the leave of the learned Single Judge.

    4. Mr. Bharucha, learned counsel for the appellants, first urged that as Gendalal, Jaidayal and Shankarlal were the managers of the joint fmily business, they were entitled to sue on behalf of the members of the joint family and that it was not necessary to make other members of the family parties to the suit. In my opinion this contention must be given effect to. From the satement of Shankarlal it is clear that Shankarlal, Gendalal and Jaidayal were the managers of joint family business. He made the statement.

    5. This statement of Shankarlal has not been rebutted by the defendant. Learned counsel appearing for the defendant before us did not say that the present plaintiffs were not the persons who managed the joint family business. If then the plaintiffs were, as the evidence shows, the managers of the joint family business they could sue in their own names on behalf of the business. The learned counsel for the respondent was not able to cite any authority to support the suggestion that a ‘Karta’ of a joint family business cannot sue alone in his own name on behalf of the business and that all the members of the joint family must join in the suit as plaintiffs.

    6. It was conceded by the learned counsel for the respondent that the suit would have been in proper form if the plaintiffs had described themselves as managers of joint family business. But it was said that in the present case they had sued in their own names and not even stated in the plaint that they were members of a joint Hindu family. The objection is not of a substantial character. The suit being one relating to joint family business and the plaintiffs being the accredited managers of the business, the omission in the plaint of their description as managers of the joint Hindu family business is merely a case of misdescription which can be corrected at any stage of the suit.

    7. The omission of the plaintiffs to state in the plaint that they were members of the joint Hindu family and the managers of the joint family business does not in my opinion affect the maintainability of the suit. The learned Single Judge was therefore, not right in holding that the plaintiffs' suit ought to have been dismissed because of the non-joinder of other co-parceners as plaintiffs.

    8. Having reached that conclusion, it is not necessary for me to consider the other contention advanced by the learned counsel for the appellants namely that as the respondents did not file any appeal or cross-objections in this Court, he could not urge that it was necessary for other co-parceners to join in the suit as plaintiffs and that their non-joinder was fatal to the suit. Were it, however, necessary for me to express any opinion on the point, I would say that the contention is sufficiently answered by the decision of a Full Bench of the Madras High Court in — ‘Venkata Rao v. Satyanarayanamurty’, AIR 1943 Mad 698 (FB) (A) on which the learned Single Judge relied, and with which I respectfully agree.

    9. O. 41, R. 22 of the CPC permits a respondent to support the decree apealed from on any of the grounds decided against him in the Court below. When a respondent accepting the decision of the Court below, resists the appellant's further claim by saying that the decree of the Court below should not be disturbed as it erred in favour of the appellant the respondent really supports the decree in his favour to the extent to which the Court below had disallowed the claim of the appellant. For the above reasons the decision of the learned Single Judge must be set aside and Civil Second Appeal No. 62 of 1949 preferred by the plaintiffs must be heard by a Single Judge on the grounds raised in the appeal. There would be no order as to costs in this appeal.

    10. Order accordingly.

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    Comments

    Gendalal v. Nanalal .
    (Jan 27, 1955)