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Smart Summary

Factual and Procedural Background

The applicant, who was the plaintiff in the lower court, ordered defendants, a limited company trading in Calcutta, to send paint "per goods train at a cheaper rate." The defendants required partial payment in advance, which the plaintiff claims to have sent on 29th April 1924. Goods allegedly corresponding to the order were consigned at Howrah Railway Station on 9th May 1924. The railway receipt, initially in favor of the defendants, was endorsed to the plaintiff. The goods arrived late, though the exact date is unknown, leading the plaintiff to refuse delivery on grounds of untimeliness. The plaintiff sued to recover Rs. 44 paid and Rs. 20 as damages. The suit was initially decided ex parte but was later set aside on the defendants' application and re-heard. The learned Judge found the claim frivolous, dismissed the suit, and awarded Rs. 30 as extraordinary costs under Section 35(A) of the Civil Procedure Code (CPC).

Legal Issues Presented

  1. Whether the suit on merits should have been decreed in favor of the plaintiff.
  2. Whether the learned Munsif had jurisdiction to order extra costs under Section 35(A) of the CPC.
  3. Whether the ex-parte decree should have been set aside by the learned Munsif.
  4. Whether the High Court should interfere under Section 25 of the Provincial Small Cause Courts Act, 1887, considering the availability of an appeal under Section 21 of the same Act.

Arguments of the Parties

Applicant's Arguments

  • The suit should have been decreed on its merits.
  • The learned Munsif lacked jurisdiction to order extra costs under Section 35(A) of the CPC.
  • The ex-parte decree should not have been set aside by the learned Munsif.

Respondents' Arguments

  • The defendants contended that the goods were sent as per the order and that the plaintiff's claim was without merit.
  • The defendants successfully applied to set aside the ex-parte decree and defended the suit on merits.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Section 91 of the Contract Act Clarifies that when goods are ordered to be sent by a particular mode (e.g., goods train), the seller's obligation is to send the goods accordingly, and delay in delivery may not constitute breach if the seller has done all in their power. The Court applied this provision to hold that the defendants fulfilled their obligation by consigning the goods as ordered, and thus the plaintiff's claim lacked merit.
Section 35(A) of the Civil Procedure Code (CPC) Empowers courts to award extraordinary costs in frivolous or vexatious suits. The Court noted that the learned Munsif awarded Rs. 30 as extraordinary costs but questioned the jurisdiction to do so under the facts.
Section 2, Clause (2) of Act IX of 1922 Defines the jurisdictional limits and powers of officers exercising powers of Judges, Small Cause Courts. The Court found that the learned Judge had jurisdiction only up to Rs. 100 and thus could not grant extra costs under Section 35(A) of the CPC without High Court empowerment.
Provincial Small Cause Courts Act, 1887 - Section 25 Gives the High Court power to revise orders of Small Cause Courts irrespective of the existence of an appeal. The Court considered whether to interfere under this section but declined to do so given the availability of a speedy appeal and the frivolous nature of the suit.
Provincial Small Cause Courts Act, 1887 - Section 21 Provides for the right of appeal from Small Cause Courts to the District Judge. The Court observed that since a speedy appeal was available, interference by revision was not warranted.

Court's Reasoning and Analysis

The Court first addressed the setting aside of the ex-parte decree, finding the learned Judge justified in treating the money already deposited in Court as sufficient security, thus properly setting aside the ex-parte decree. On the merits, the Court applied Section 91 of the Contract Act and found that the defendants had complied with their obligation by consigning the goods as per the plaintiff's order. The plaintiff's refusal to accept the goods on grounds of late arrival was insufficient to sustain the claim. Regarding jurisdiction, the Court noted that the learned Judge had authority only up to Rs. 100 and was not empowered by the High Court to award extra costs under Section 35(A) of the CPC. Finally, the Court considered whether to interfere under Section 25 of the Provincial Small Cause Courts Act but declined, emphasizing the availability of a speedy appeal and the frivolous nature of the plaintiff's suit, which had unnecessarily burdened the defendants.

Holding and Implications

The application in revision is dismissed.

The Court held that the plaintiff's suit lacked merit and that the learned Munsif had no jurisdiction to award extra costs without proper empowerment. The ex-parte decree was rightly set aside. The Court declined to exercise its revisional jurisdiction under Section 25 of the Provincial Small Cause Courts Act given the availability of an appeal and the frivolous nature of the suit. Consequently, the applicant must pay the costs of the respondents. No new precedent was established; the decision directly affects the parties by upholding the dismissal of the suit and confirming the cost award’s invalidity due to jurisdictional limits.

    Banwari Lal v. Shalimar Paints Colour And Varnish Co. Ltd.

    1. This is an application in revision against a decree of a learned Munsif exercising the powers of a Judge, Small Cause Court at Pilibhit.

    2. It appears that the applicant who was the plaintiff in the Court below ordered the defendants respondents, a limited Company, trading in Calcutta to send him some paint “per goods train at a cheaper rate.” The defendants insisted on payment of a portion of the price beforehand and, according to the plaintiff's case, the money was sent to them on, the 29th of April 1924. Goods, alleged to correspond to the goods ordered, were consigned at the Railway Station at Howrah on the 9th of May 1924. The Railway receipt which was in favour of the defendants themselves was endorsed in favour of the plaintiff. The goods arrived, it is said, rather late (we do not know the exact date) and the plaintiff refused to take delivery of the same on the ground that it reached too late to be of use to him. The plaintiff thereupon brought the suit for recovery of the price paid, viz., Rs. 44 and for recovery of Rs. 20 damages. The suit was decided ex-parte. But on the application of the defendants the ex-parte decree was set aside and the suit was re-heard. The learned Judge found that there was no substance in the claim, that the suit was a frivolous one and he accordingly dismissed the suit and awarded to the defendants a sum of Rs. 30 as extraordinary costs under Section 35(A) of the CPC.

    3. It is contended for the plaintiff that on the merits of the case the suit ought to have been decreed, that the learned Munsif had no jurisdiction to make an order for extra costs and that the ex-parte decree should not have been set aside by the learned Munsif.

    4. Taking the third point first, it appears that two applications had to be made for setting aside the ex-parte decree. When the first application was made the decretal amount was not deposited forthwith and the application was dismissed on this very ground. A second application was made within the period of limitation with the request that the money already in Court should be treated as sufficiently 1 good security. I think the learned Judge of the Small Cause Court was perfectly justified in treating the money in Court as good security and setting aside the ex-parte decree.

    5. On the merits of the case there is hardly much to be said. The plaintiff's orders were that goods were to be sent per goods train. The defendants did all that lay in their power to enable the plaintiff to obtain delivery of the goods when they arrived at Pilibhit. Section 91 of the Contract Act is clear on the point and the illustration leaves no room to doubt that this rule of law was entirely applicable. There are, therefore, no merits in the main case.

    6. The question of jurisdiction is based on S. 2, Cl. (2) of Act IX of 1922. It is urged that an officer who has been permitted to exercise the powers of a Judge, Small Cause Court, under the Provincial Small Cause Courts Act of 1887 is not entitled to exercise the powers of granting costs under Section 35(A) of the CPC unless he is vested with a jurisdiction up to Rs. 250. The High Court may, however, empower any such officer to award such costs. It is nobody's case that Mr. Aijaz Husain, the learned Judge was so empowered by the High Court. I have ascertained from the office that he exercised jurisdiction as a Judge, Small Cause Court, up to Rs. 100 only. The parties are in the circumstances ab one that he could not have granted extra costs under Act IX of 1922.

    7. The question, however, is raised whether this Court should interfere under the provisions of Section 25 of the Provincial Small Cause Courts Act, in view 1 of the fact that the applicant could have appealed under S. 21 of the Act to the District Judge. It is true that the exercise of the right of interference under Section 25 of the Provincial Small Cause Courts Act does not depend on the question whether an appeal lies or not.

    8. Still it is a matter for consideration whether, when there is a speedy remedy open to a party, he should be allowed to come up in revision and drag the opposite party to the High Court where the expense of engaging a counsel must be greater than in the Mofussil. On the merits, the applicant has no case. On a most frivolous suit, he dragged the defendants from Calcutta all the way to Pilibhit to answer a claim which had no basis either in morality or in law. The amount of compensation awarded to the defendants was hardly an adequate compensation for all the trouble and expenses undergone by them. In the circumstances I do not think that this Court is bound to exercise its jurisdiction under Section 25 of the Provincial Small Cause Courts Act, simply because the Judge may have been in error.

    9. The result is the application in revision fails and is hereby dismissed. The applicant must pay the costs of the respondents.

    10. Application dismissed.

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    Banwari Lal v. Shalimar Paints Colour And Varnish Co. Ltd.
    (Nov 25, 1925)