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Gulraj Shroff v. Kaniram Sureka

Calcutta High Court
Dec 2, 1937
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Factual and Procedural Background

The dispute arises from a cluster of suits in 1937. On 19 February 1937 defendants instituted Suit No. 279 of 1937 against the plaintiffs for Rs. 1801-2-0 for money lent; the plaintiff Gulraj Shroff filed a written statement alleging payment of Rs. 1500 and produced a purja in support, which was challenged. On 9 March 1937 one defendant, Banwarilal Sureka, instituted Suit No. 388 of 1937 for recovery of Rs. 7578-1-0, to which the plaintiff also filed a written statement. Both suits were high in the prospective list in July 1937 when the plaintiffs instituted the present suit on 14 July 1937.

Procedurally, Panckridge J. (28–29 July) ordered plaintiffs to supply particulars and file a written statement and directed that an affidavit of documents be filed within a week of the written statement and that inspection be given immediately thereafter; the suit was to be placed after Suits Nos. 279 and 388 after the vacation. Defendants filed their written statement on 17 August; time for filing the affidavit expired on 23 August. By consent order dated 30 August Biswas J. directed plaintiff Gulraj Shroff to file his affidavit of documents within ten days, to give inspection within a week thereafter, and that in default the suit be dismissed with costs; the office was to accept the affidavit during vacation.

Gulraj Shroff missed the deadline and, on application, Biswas J. on 9 September extended the time by one week and ordered inspection to be given forthwith. The affidavit of documents was filed on 17 September, but inspection was not given. Correspondence between the parties' solicitors in late September shows repeated demands by defendants' solicitors for inspection and the plaintiff's solicitors delaying arrangements. On 30 September defendants' solicitors wrote that the suit stood dismissed for failure to give inspection. Plaintiffs replied denying failure and stated that inspection was fixed for 6 November after vacation; they also gave an account that the adult plaintiff had gone on pilgrimage and could not be reached in time.

Legal Issues Presented

  1. Whether, on the facts and the consent order of 30 August (and the extension of 9 September), the present suit was automatically dismissed (i.e., "dead") as from 30 September 1937 for failure to comply with the order for discovery/inspection.
  2. Whether a conditional order directing discovery/inspection within a specified time and stating that in default the suit "be dismissed" or "stand dismissed" operates automatically to dismiss the suit upon default, or whether a further formal order is required.

Arguments of the Parties

Plaintiffs' Arguments

  • The plaintiffs (through their attorneys Messrs Fox & Mandal) denied any failure to give inspection and asserted that the time for offering inspection expired on a day on which the Court and their office were closed, so inspection could not be given during that period.
  • They stated they had made an appointment to allow inspection on 6 November (the first day after re-opening) and later for 8 November, and alleged the defendants' attorneys did not appear on those dates.
  • They relied on an affidavit that the adult plaintiff had been on pilgrimage since about 27 August and that the 30 August order could not be communicated to him.
  • They relied upon certain obiter dicta (cited in the opinion) that an order does not take effect until it is drawn up and served.

Defendants' Arguments

  • The defendants (through Messrs Khaitan & Co.) contended that the plaintiffs failed to give inspection in accordance with the Court's orders and therefore the suit stood dismissed by reason of the conditional dismissal provision in the order.
  • They repeatedly demanded inspection by letters dated 21–23 September and, on failure to obtain it, maintained on 30 September that the suit stood dismissed.
  • They acknowledged giving a notice to admit and produce dated 6 November, but said that was given inadvertently and in any event did not affect the question of dismissal.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
50 CLJ 397 (opinion of Sanderson C.J.) Cited regarding whether ordinarily there should be two orders (first for discovery and second, on default, for dismissal) and a suggestion that it may not be proper to make a conditional dismissal order. The Court agreed with Sanderson C.J. as to the ordinary existence of two orders but dissented from the implication that conditional orders should not be made; the Court held conditional orders can operate to dismiss on default.
48 Cal 9022 Example of an order containing a conditional dismissal (order described in the opinion) — used to illustrate practice where conditional words operate on default. Quoted as an instance of a conditional order; the Court treated it as supportive of the proposition that a conditional dismissal can be final on default.
59 LJ Ch 406 Authority discussing effect of conditional orders and whether a further order is necessary. The Court discussed Greaves J.'s view in this report (that in that case a further order was necessary) and distinguished that case from the present facts.
(1879) 48 LJ QB 606 Held that an order dismissing an action unless a statement of claim were delivered within 14 days resulted in the action being dead when the time expired. The Court relied on this authority to support the holding that a conditional order using "be dismissed" or "stand dismissed" has the effect of terminating the suit on default.
(1882) 51 LJ Ch 207 Construction of the word "forthwith" — it is to be construed according to circumstances; where an act can be done without delay, no delay is permitted; otherwise delay must be reasonable. The Court applied this principle to conclude that the plaintiffs' delay in giving inspection was unreasonable and that "forthwith" required prompt compliance in the circumstances (including during vacation).
(1882) 46 LT 316 Contains obiter dicta that an order does not take effect until drawn up and served. The Court noted these dicta but stated they were not subsequently approved in England and India and declined to follow them as correctly stating the law in India.
(1889) 23 QBD 124 and (1890) 59 LJ Ch 406 Later authorities cited as not approving the dicta in (1882) 46 LT 316. The Court relied on these later authorities (and an Indian authority) to reject the contention that the 30 August order had no effect because it had not been drawn up or served.
36 CWN 861 (at p. 865) Indian High Court authority cited as not approving the obiter dicta that an order only takes effect on drawing up and service. The Court cited this decision to support the conclusion that the obiter dicta in (1882) 46 LT 316 do not correctly state the law in India.

Court's Reasoning and Analysis

The Court began by identifying the relevant procedural rule: O. 11, R. 21 of the Civil Procedure Code (CPC), which states that where any party fails to comply with an order for discovery or inspection of documents he shall, if a plaintiff, be liable to have his suit dismissed for want of prosecution and that the party seeking discovery may apply to the Court for an order to that effect. The Court noted the similarity between O. 11, R. 21 (India) and O. 31, R. 21 (England).

The focal question was the legal effect of the specific consent order made in the present case (30 August), which directed filing of an affidavit and inspection within specified periods and provided that in default the suit should be dismissed. The Court analyzed whether such a conditional order operates automatically to dismiss the suit on default (i.e., without any further formal order), or whether further proceedings are required to make the dismissal effective.

The Court engaged with English authorities. It agreed with the observation (attributed to Sanderson C.J.) that ordinarily there may be two orders — an order for discovery and, on default, a later order of dismissal — but rejected the subsidiary conclusion that conditional dismissal orders ought not to be made. The Court held that it is proper, by practice in England and India, where there has been a previous order for discovery, to make a subsequent conditional order specifying a time for compliance and providing that upon default the suit "be dismissed" or "stand dismissed."

The Court examined forms and examples in practice manuals (Chitty, Seton, Annual Practice) showing usage of the expressions "be dismissed" and "stand dismissed" and concluded there is no difference in effect between those expressions: both operate to terminate the suit unless compliance occurs within the specified time. The Court distinguished cases in which the conditional wording was part of an adjournment order that contemplated further consideration by the Court (where a further order would be required), and it accepted Greaves J.'s view (in a distinct factual context) that a subsequent order was required there. The Court found that that distinct factual posture did not apply in the present case.

On the construction of the word "forthwith" in the order of 9 September (extending time and ordering inspection forthwith), the Court applied the established rule that "forthwith" must be construed in view of the circumstances and generally requires prompt action; where an act is capable of being done without delay, no delay is permitted. The Court found the delay by the plaintiffs to be unreasonable and without adequate excuse.

The Court also rejected the plaintiffs' contention based on obiter dicta (that an order takes effect only upon being drawn up and served) by reference to later authorities which did not approve those dicta; it held those dicta did not correctly state the law in India. The Court further rejected the submission that the minor plaintiff remained unaffected: the consent order was directed to the solicitors for both plaintiffs, related to both plaintiffs, and thus both plaintiffs were bound by the order.

Holding and Implications

Core Ruling: The application was allowed and it was recorded that the suit stood dismissed as from 30th September 1937.

Implications and immediate consequences (as stated in the opinion):

  • The suit is treated as terminated (dead) from 30 September 1937 because of failure to comply with the conditional order for affidavit and inspection.
  • The defendants were entitled to the costs of the suit and reserved costs; the application was allowed with costs.
  • The Court affirmed the legal view that a conditional order directing discovery/inspection within a specified time and declaring that in default the suit "be dismissed" or "stand dismissed" can have the effect of dismissing the suit automatically upon default, absent special circumstances requiring a different construction.

The opinion sets out the Court's interpretation of the effect of conditional dismissal orders under O. 11, R. 21 CPC (and comparable English practice) as explained above; the direct effect in this case was dismissal and an award of costs to the defendants.

Disposition: Application allowed.

Show all summary ...

1. This is a summons asking that it be recorded that this suit stands dismissed and the same be struck out and removed from the list. On 19th February 1937, the defendants filed a suit against the plaintiffs, being Suit No. 279 of 1937, for recovery of Rs. 1801-2-0 for money lent. The plaintiff Gulraj Shroff filed a written statement alleging, inter alia, that he had paid a sum of Rs. 1500 and produced a purja in support, which is challenged by the defendants. On 9th March 1937, one of the defendants, Banwarilal Sureka, instituted a Suit No. 388 of 1937 for the recovery of Rs. 7578-1-0 for money lent to the plaintiff. A written statement was filed by the plaintiff in this suit also. Both these suits were appearing high in the prospective list in July 1937 when the plaintiffs instituted the present suit on 14th July. On 28th July Panckridge J., ordered the plaintiffs to supply particulars within a fortnight and to file a written statement within a fortnight thereafter. On 29th July Panckridge J., directed that an affidavit of documents should be filed within a week after the filing of the written statement and inspection was to be given immediately thereafter, and the suit was to be placed after the aforesaid Suits Nos. 279 and 388 on the list after the vacation. The defendants filed their written statement on 17th August and the time for filing the affidavit of documents expired on 23rd August. On 30th August an order was made by consent by Biswas, J. directing the plaintiff Gulraj Shroff to file his affidavit of documents within ten days, inspection to be given within a week thereafter and that in default the suit be dismissed with costs. The office was directed to accept the affidavit during the vacation. The plaintiff Gulraj Shroff failed to file his affidavit of documents within time and on an application made by the plaintiffs, Biswas J. on 9th September extended the time to file the affidavit by a week, and ordered inspection to be given forthwith.

2. The learned-judge acted thus, presumably, under the provisions of Chap. 38, R. 33, which gives power to the Court or a Judge to enlarge or abridge time, but I am doubtful, whether this Rule gives the Court power so to act, with regard to a consent order, without the consent of the parties. The plaintiff filed his affidavit of documents on 17th September, but failed to give inspection forthwith as he had been directed so to do. On 21st September Messrs Khaitan & Co., the attorneys for the defendants, wrote to Messrs Fox and Mandal, the attorneys for the plaintiff, asking them to appoint a time to give-inspection. They wrote again on 22nd September, saying that no time had been appointed and that the defendants would attend at the office of Messrs Fox and Mandal next day between 2 and 3 P.M to take inspection. On 23rd Messrs Fox and Mandal replied to the effect that they had no time to communicate with their clients and that they could not arrange inspection on that day, and that they would inform Messrs Khaitan & Co. later on when they had been able to hear from their clients.

3. On 30th September Messrs Khaitan & Co. wrote saying that inasmuch as they had failed to give inspection according to the orders of the Court, the suit stood dismissed. In reply, Messrs Fox Mandal said that there was no question of failure to give inspection, and that their suggestion that the suit stood dismissed was preposterous, that the time for offering, inspection expired on a day on which the Court was closed, and as their office was also closed for all normal work no inspection could be given during that period, and they stated that they had already made an appointment to allow the defendants to have inspection on the first day after the re-opening of the Court, after the long vacation. They accordingly fixed 6th November 1937 for inspection.

4. In the plaintiffs' affidavit in reply they allege that no order for inspection was made, that they duly filed their affidavit of documents in compliance with the order of the Court on 17th September, and they deny that they failed to give inspection or that there was any demand for inspection. Both these allegations are obviously inaccurate. The minutes show that an order for inspection was made and the letters to which I have referred show that there were repeated demands for inspection. They further allege that they appointed 6th November for inspection, but that the defendants' attorneys did not appear and that they made further appointment for 8th November but the defendants were absent. They say also that the defendant treated the suit as subsisting by giving, notice to admit and produce, dated 6th November 1937. This is correct, but the defendants say that this notice was given by inadvertence and, in my opinion, it, makes no difference to the question which I have to decide. In another affidavit dated about 9th September, a clerk in the employ of Messrs Fox & Mandal said that the adult plaintiff left for pilgrimage on or about 27th August 1937 and was expected back in Calcutta by the first week of September, but had not yet returned and was moving about in different places of pilgrimage and would come back in about ten days' time. In the circumstances the order dated 30th August could not be communicated to him.

5. In spite of the orders made by Panckridge J. to which I have referred, the adult plaintiff deliberately chose to go on pilgrimage and flout and disregard the orders which the Court had made. There is therefore no shadow of excuse for the plaintiff's failure to obey these orders. The question which I have to decide is whether, as a result of these proceedings, this suit is dead as from 30th September 1937. O. 11, R. 21 of the CPC, provides that where any party fails to comply with any order for discovery or inspection of documents he shall, if a plaintiff, be liable to have his suit dismissed for want of prosecution, and the party seeking discovery or inspection may apply to the Court for an order to that effect and an order may be made accordingly. This Rule is similar in terms to O. 31, R. 21 of the rules of the Supreme Court in England. The form of the order in the present case was that the plaintiff Gulraj Shroff should file his affidavit within the prescribed time and that inspection be given within a further prescribed period and that in default the suit be dismissed. The question for decision therefore is whether the effect of such an order in the present circumstances results in the suit being automatically dismissed upon default, without any further order. The terms both of the English and the Indian rule seem to contemplate that ordinarily there will be two orders; first an order for discovery, and second, on default, an order of dismissal of the suit for want of prosecution. On this point I am in agreement with the opinion expressed by Sanderson C.J in 50 CLJ 397.1 But the learned Chief Justice seems to suggest that ordinarily it would not be proper to make a conditional order, for example, an order for discovery within a prescribed time, and on default that the suit be dis missed. If that be the meaning of the judgment, I regret to find myself in dis-agreement.

6. Where, as in the present case, there has been a previous order for discovery, it is in my opinion proper, and according to practice both in England and India, to make a subsequent conditional order, for example, an order for discovery within a prescribed time, and upon default that the suit be dismissed or stand dismissed. The English forms under O. 31, R. 21 are to be found at pp. 364 and 365 of Chitty's King's Bench Forms, Edn. 15; and No. 2 provides for such a conditional dismissal of a suit for want of prosecution. The expression used by this author is “be dismissed”. For similar forms, see Seton's Judgments and Orders, Edn. 7, Vol. 1, at pp. 133 and 134. Nos. 4 and 5 provide for similar conditional orders. The expression used by this author is “stand dismissed”. There is a similar Form, No. 15 of App. K in the Annual Practice 1937 at p. 1759, where the expression used is “be dismissed”. However in that case, as in the present case, the point could not and cannot be agitated because there was no appeal from the order, and all that now remains for decision is what in the effect of the order upon the suit. In that case the material words were and it is further ordered that in default of the plaintiff firm filing such affidavit within the time aforesaid this suit do stand dismissed. The Court held that this order became on default a final order dismissing the suit. In 48 Cal 9022 the order ran:

Adjourned till 1st June; Rs. 200 as condition precedent to be paid before 1st June. If the money is not paid by 1st June the suit will be dismissed.

7. Greaves J. considered that if the order had contained the words “in default the suit will stand dismissed,” the suit in the absence of any appeal from the order would have been dead. (On this point see 59 LJ Ch 406.3) But that having regard to the terms of the order a further order was necessary. With this opinion I respectfully agree. The order was that the application be adjourned until 1st June, and obviously contemplated that the matter would again come before the Court, and that if there were default, the suit would then be dismissed. That case is clearly distinguishable from the present case. In my opinion there is no difference in effect between the terms “stand dismissed” and “be dismissed”. Both mean that the effect of the order is to dismiss the suit unless something be done within a specified time. Thus, in (1879) 48 LJ QB 6064 an order was made dismissing the action unless a statement of claim should be delivered within 14 days. Held that the action was dead when the day fixed by the order expired. Similarly, in the present case, the order contemplated that in case of default the suit would be dead. Nor have I any doubt that the plaintiffs were guilty of default. The order provided for inspection ‘forthwith’ and obviously contemplated that it would be given during the period of the vacation. In (1882) 51 LJ Ch 207,5 it was held that “forthwith” was to be construed according to circumstances and meant within a reasonable time. That, where an act, required to be done forthwith, is one which is capable of being done without any delay, no delay can be permitted, and that in other cases the delay must not be unreasonable. The delay in the present case, in my opinion, was unreasonable, and no reasonable excuse for it has been offered by the plaintiff.

8. The plaintiffs have relied also upon certain obiter dicta in (1882) 46 LT 316 to the effect that an order does not take effect until it is drawn up and served, and that the order in the present case has not even yet been drawn up. But these dicta were not approved subsequently in England, [see (1890) 59 LJ Ch 406 and (1889) 23 QBD 124,7 or in this High Court, see 36 CWN 8618 at p. 865], and in my opinion they do not correctly state the law in India. Finally, it has been argued that in any case the minor plaintiff is not affected by the order and the suit is alive so far as he is concerned. I fail to appreciate this argument. The same attorneys were and are acting for both the plaintiffs. The summons asking for an order directing the adult plaintiff to file an affidavit of documents was directed to these attorneys as solicitors for the plaintiffs and both plaintiffs were asked to give inspection and to pay costs. The order was by consent and was directed to both of them. The result is that this application must be allowed with costs. It is recorded that the suit stood dismissed as from 30th September 1937, and the defendants will have the costs of the suit and reserved costs.

D.S/R.K

9. Application allowed.