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Mt. Jamna Kunwar v. Kunj Behari Lal
Concise Structured Summary of the Opinion
Factual and Procedural Background
The second appeal arises from a suit in which Musammat Jamna Kunwar was the plaintiff and Kunj Behari Lal and Ajodhia Prasad were original defendants. The plaintiff alleged that her deceased husband and the two defendants had been partners in a firm, that she had stepped into her late husband's place, and that the managing partners (Ajodhia Prasad and Kunj Behari Lal) had not paid her share of partnership profits. Ajodhia Prasad (father of Kunj Behari Lal) died before filing any written statement. Kunj Behari Lal later pleaded that Ram Sarup (a relation of the plaintiff) was a member of the firm and should be impleaded; Ram Sarup was impleaded only after the period of limitation for a suit for accounts against him had expired.
The learned Munsif found that Kunj Behari Lal, Ajodhia Prasad and Ram Sarup were partners and that Kunj Behari Lal was liable to account, but dismissed the whole suit on the ground that Ram Sarup was a necessary party who had not been impleaded within the period of limitation. The lower Appellate Court affirmed that dismissal for the same reason. The second appeal raises whether those conclusions by the courts below were correct.
Legal Issues Presented
- Whether a suit for the accounts of a partnership must be dismissed if all partners are not impleaded as parties.
- Whether a party cannot be impleaded at all if any claim which might have been made against him is barred by limitation (i.e., whether limitation prevents subsequent impleading, including pro forma impleading).
Arguments of the Parties
Respondents' Arguments
- Relying on certain dicta and earlier decisions (notably Ram Dayal v. Junmenjoy Coondoo and cases following it), the respondents contended that in partnership suits all partners must be made parties and that failure to implead all partners is fatal to the suit.
- They also relied on authority (and textual commentary) to support the view that a party cannot be impleaded if a claim against him is barred by limitation, such that adding him after limitation would defeat the suit.
- Respondents drew attention to English commentary (Lindley on Partnership) regarding who should be impleaded in partnership suits and cited cases that, in their view, supported dismissal where certain partners were not before the court.
The opinion records the respondent's reliance on these sources and the courts below accepted those contentions in dismissing the suit.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court in this Opinion |
|---|---|---|
| Ram Dayal v. Junmenjoy Coondoo, 14 C. 791 | The proposition that in partnership suits all partners must be made parties or the suit will fail; earlier dicta that adding necessary parties after limitation may require dismissal of the whole suit. | The court identified this case as the origin of the absolute proposition relied on by the courts below but distinguished it on the basis that it was decided under the 1882 Code; the present Code provisions allow courts to deal with issues between parties actually before them. Thus the court rejected the absolute application of Ram Dayal here. |
| Ambika Charan Guha v. Tarini Charan Chanda, 19 Ind. Cas. 963 : 18 CWN 464 | Affirmed the principle in Ram Dayal that all partners must be parties in a partnership suit. | The court noted this later case followed Ram Dayal but observed that its judges did not discuss the newer Code provision that no suit should be defeated by non-joinder; the present court regarded that reliance as insufficient to sustain the absolute rule. |
| Jogendra Nath Singh v. Secretary of State, 17 Ind. Cas. 921 : 16 CLJ 385 : 17 CWN 835 | Distinction between necessary parties and proper parties; a necessary party is one against whom a right to relief exists and whose presence is required to enable the court to adjudicate effectively and completely. | The court accepted this distinction and explained that if a party is truly "necessary" in that sense, non-joinder may be fatal because no effective decree can be given; but where adjudication of the rights of present parties is possible without affecting absent parties, non-joinder is not automatically fatal. |
| Srinath Pal v. Hari Charan Pal, 7 CLJ 266 | An instance where partnership dissolution could not be decreed in the absence of some partners (illustrating cases where no effective decree can be passed without all parties). | Used by the court as an example of a category of cases where dismissal or refusal of decree is appropriate because an effective decree cannot be passed without absent parties; not treated as authority for a blanket rule. |
| Madho Ram v. Jagat Singh, 52 Ind. Cas. 18 : AIR 1919 All. 322 | Case of preemption where a decree could not be made effective because a temple (beneficial holder) was not impleaded; example of inability to obtain an effective decree in the absence of certain parties. | Relied on as another illustration where non-joinder makes it impossible to pass an effective decree; court distinguished such cases from the present accounting case. |
| Raj Chunder Sen v. Ganga Das Seal, 31 C 487 : 31 IA 71 : 1 ALJ 145 : 8 Sar. 623 (PC) | Related to appeals where, after a decree, a party died and no legal representatives were before the court, making it impossible to upset the decree without affecting rights of absent persons. | The court treated this as another example where inability to give an effective adjudication in the absence of certain parties justified refusing relief; it held the case to be of a different character from the present accounting dispute. |
| Jagannath Mandal v. Amulya Krishna Kundu, AIR 1927 Cal. 794 : 104 Ind. Cas. 576 : 46 CLJ 118 | Decision affecting the question whether limitation prevents impleading a defendant; supports that rules of limitation apply to claims and do not prevent pro forma impleading of a defendant whose claim against him may be otherwise time-barred. | The court relied on this line of authority to reject the proposition that a defendant cannot be impleaded at all if any claim against him is barred by limitation; it supports impleading pro forma so the suit can proceed as regards other defendants. |
| Mahomed Ishaq v. Sheik Karamul Huq, 12 CWN 84 : 6 CLJ 558 | Earlier ruling on the same point as Jagannath Mandal regarding the effect of limitation on impleading defendants. | The court cited it as part of the authority showing limitation applies to claims and does not prevent subsequent impleading where no substantive claim is made against the newly impleaded defendant. |
| Chaudhri Jahangira v. Sarup, AIR 1930 All. 309 : 123 Ind. Cas. 828 | Under Agra Tenancy Act and Section 22 of the Limitation Act, adding co-sharers after limitation expired did not defeat the suit as regards the tenant defendant; a new defendant is regarded as sued when made a party, but the suit against original defendant is deemed instituted when originally brought. | The court treated this as directly supportive: even if co-partners are impleaded after limitation has run, the suit as regards the contesting defendant is not defeated; the principle was applied analogously to the present case. |
Court's Reasoning and Analysis
The court framed the dispute as dependent upon two propositions: (1) that a partnership-account suit must be dismissed if all partners are not impleaded, and (2) that a party cannot be impleaded if any claim against him is barred by limitation. The court examined each proposition in turn.
On the first proposition, the court traced its origin to Ram Dayal and subsequent cases that treated non-joinder as fatal in partnership suits. The court emphasised that the procedural law governing the present case is the Code of Civil Procedure and its rules, including the later provision that "no suit shall be defeated by misjoinder or non-joinder of parties" and that the court may deal with the controversy as regards parties actually before it. Relying on that framework and on the distinction between cases where an effective decree cannot be passed without absent parties and those where adjudication between present parties is possible, the court rejected the absolute rule that all partners must always be impleaded as a prerequisite to a partnership-account suit. The court explained that where it is impossible in equity and justice to pass a decree without affecting the interests of non-parties, refusal is appropriate; but otherwise suits should not be dismissed merely because some party was not impleaded initially.
On the second proposition concerning limitation, the court observed that the rules of limitation govern claims and do not per se prevent impleading a defendant pro forma. The court relied on precedents (including Jagannath Mandal, Mahomed Ishaq, and Chaudhri Jahangira) holding that limitation applies to claims and that impleading a new defendant after institution of the suit is governed by Section 22 of the Limitation Act (so that a suit as regards a new defendant is treated as instituted when he was made a party, while the suit against original defendants is deemed instituted when the suit was originally filed). Applying that principle, the court found that impleading Ram Sarup after the period of limitation expired did not justify dismissal of the entire suit or affect the plaintiff's claim against Kunj Behari Lal. The court noted that no substantive claim had in fact been made against Ram Sarup at the time; even if his absence in the first instance delayed proceedings, once he was made a party the court could proceed to examine accounts and apportion liability if any sums were found to be due from Kunj Behari Lal or Ram Sarup respectively.
Weighing these conclusions, the court held that the lower courts had applied an incorrect or overly rigid principle. The court found no technical rule or principle of equity that justified dismissing the suit on the combined grounds of non-joinder and limitation in the circumstances of this accounting dispute.
Holding and Implications
Holding: The decree of the learned Judge of the lower Appellate Court is set aside and the case is remanded to him for decision according to law. The court ordered that the court-fees payable on the appeal be refunded, costs shall follow the result, and leave to appeal is granted.
Implications:
- The direct effect on the parties is that the plaintiff's suit is not dismissed on the sole grounds of non-joinder of a partner and limitation affecting the late-impeaded partner; the matter is remitted for further adjudication on the merits with all parties before the court.
- The court articulated that non-joinder is not an automatic or technical ground for dismissal where justice permits adjudication between present parties; only where an effective decree cannot be fashioned in the absence of certain parties should relief be refused for that reason.
- The court applied the principle that limitation bars claims, not the mere impleading of a party pro forma; impleading a party after limitation does not necessarily defeat the suit as to other defendants where adjudication as to them can proceed.
- This decision resolves the immediate dispute between the parties by remanding for further proceedings; the opinion does not purport to set out a novel general rule beyond the application of existing procedural principles and cited authorities to the facts of this case.
1. This second appeal arises out of a suit in which the appellant Musammat Jamna Kunwar was the plaintiff and Kunj Behari Lal and Ajodhia Prasad were the original defendants. Ajodhia Prasad was the father of Kunj Behari Lal. He died before any written statement could be put in on his behalf. Musammat Jamna Kunwar alleged that her deceased husband and the two defendants Ajodhia Prasad and Kunj Behari Lal had been members of a partnership, that after her husband's death she had taken his place and that' Ajodhia Prasad and Kunj Behari Lal who. were the managing partners had not paid to her, her share of the profits accruing to the firm After the death of Ajodhia Prasad the suit proceeded against Kunj Behari Lal and he took the plea eventually that Ram Sarup, a relation of the plaintiff, was a member of the firm and that he should be impleaded. Ram Sarup was impleaded accordingly, but that was not till the period of limitation for a suit for accounts against him had expired. The learned Munsif found that Kunj Behari Lal and Ajodhia Prasad and Ram Sarup had all three been partners in the firm. He held that Kunj Behari Lal was liable to account for the profits of the firm, but came to the conclusion that the whole suit should be dismissed because Ram Sarup was a necessary party and had not been impleaded till the period of limitation had expired. The learned Judge of the lower Appellate Court supported the learned Munsifs conclusion that the whole suit should be dismissed because it could not proceed against Ram Sarup. The question in second appeal is whether the conclusions of the Courts below upon this point are right.
2. These conclusions depend really upon two propositions. One of these is that a suit for the accounts of a partnership should be dismissed if all the partners are not impleaded. The second is that a party cannot be impleaded at all if any claim which might have been made against him is barred by limitation. In my opinion, neither of these propositions is true. The first proposition is based upon a series of dicta and decisions beginning from the case in Ram Dayal v. Junmenjoy Coondoo 14 C. 791. In that case it was certainly said that it had been held more than once that if a suit was brought by certain persons as plaintiffs and they omitted in the first instance to join with them as co-plaintiffs persons who were necessary parties, and these parties were afterwards added as plaintiffs at a time when for them the claim was time-barred, the whole suit must be dismissed and the learned Judges added that they could see no distinction in principle between the case of one who ought to have been originally a plaintiff and the case of one who ought to have been originally a defendant. That was a suit for partnership accounts and the suit was dismissed because it was found that a necessary party had not been impleaded as a defendant. About this case I think I need only say that it was decided in the year 1887 when the Civil Procedure Code of 1882 was in force and that at that time the rule was that no suit should be defeated by reason of the misjoinder of parties, whereas the rule now is that no suit shall be defeated by misjoinder or non-joinder of parties and the Court may in every suit deal with the matter in controversy so far as regards the rights and interests of the parties actually before it. My attention has been drawn to the case in Ambika Charan Guha v. Tarini Charan Chanda 19 Ind. Cas. 963 : 18 CWN 464 which was decided in the year 1913. This case certainly did follow the case to which I have already referred and it was decided after the new Code of Civil Procedure came into force. The learned Judges did not, however, make any remark upon the addition to the provisions of law that no suit should be defeated by reason of the nonjoinder of parties. They did not discuss the principles underlying that decision but were content to express their agreement with the principle laid down in Ram Dayal v. Junmenjoy Coondoo 14 C. 791 that in a partnership suit all the partners must be made parties or the suit will fail.
3. Learned Counsel for the respondents had drawn my attention to the remarks made in Lindley on Partnership, Ed. 8, pp. 341, 533, 536 and 537 on the question of the parties who should be impleaded in partnership suits. 1 in ay say at once that it does not seem to me that the rules of procedure in England have any effect upon the rules of procedure in these matters in this country because our procedure is clearly laid down in the Code of Civil Procedure and the rules in Schedule I which are made under it and we have no reason to refer to any other law. We could only refer to the Law of England upon these points if there was no provision for them in our own rules and if the English Law represented to our minds the principles of justice, equity and good conscience. However, I find even if we were to follow the principles of the English Law that it is by no means the universal rule as laid down in Lindley that all partners must be impleaded in partnership suit. No doubt in most cases it would be advisable to implead them, but it does not necessarily follow that the result of failing to implead them is that the suit instituted by the plaintiffs must be dismissed. It seems to me that it is clearly the intention of the rules in the Code of Civil Procedure that no suit should fail and that no claim should be dismissed merely upon the technical ground that a particular person has not been made a party to the proceedings. If it is considered that he should be a party, the proper course is to see that he is impleaded. If he is not impleaded for some reason then the proper course is as far as possible to do justice between the parties who are before the Court. There may be cases in which it is impossible to pass a decree of any kind in favour of a plaintiff against a defendant without affecting adversely the interests of others who are not parties to the proceedings and it may be in such cases that the only possible course is to refuse to pass a decree, but every case must be considered upon its own merits, and I do not think that any suit should be dismissed merely upon the ground that some party has not been impleaded. The facts of each case should be examined and if it is found that it is impossible in justice and equity to pass a decree in favour of the plaintiff, the decree should be refused upon that ground alone.
4. Learned Counsel for the respondents is unable to bring to my attention any rule in the Civil Procedure Code or otherwise applicable to the Courts in this province that no suit for the accounts of a partner shall proceed unless all the partners are impleaded as plaintiffs or defendants. I can find no reason in equity, justice or good conscience why any such rules should be imported into the law contrary to the rules of procedure which are clearly laid down. I may mention that the case in Ambika Charan Guha v. Tarini Gharan Chanda 19 Ind. Cas. 963 : 18 CWN 464, also makes reference to a previous ruling, i.e. Jogendra Nath Singh v. Secretary of State 17 Ind. Cas. 921 : 16 CLJ 385 : 17 CWN 835. In that case it was held that there was a distinction between necessary parties and proper parties to a suit and the learned Judges seem to have thought that the failure to implead a necessary party was fatal to a suit but even in that case a necessary party was considered only to be a person against whom a right to some relief existed and whose presence was necessary in order to enable the Court effectually and completely to adjudicate upon and settle all questions involved in the suit. The second condition implies that no person is a necessary party if it is possible to adjudicate upon the rights of others in his absence. If that is what the learned Judges intended to hold I do not thin that anybody would have any difficulty; in agreeing with them, but in the event of a necessary party in this sense not being impleaded, the suit would be dismissed not upon the ground of misjoinder but upon the ground that it was not possible to give the plaintiff a decree without affecting the interest of others who were not before the Court. In so far as the case in Ambika Charan Guha v. Tarini Charan Chanda 19 Ind. Cas. 963 : 18 CWN 464 depends upon this previous ruling in Jogendra Nath Singh v. Secretary of State 17 Ind. Cas. 921 : 16 CLJ 385 : 17 CWN 835, there is no reason to differ from it.
5. A reference has also been made to the case in Srinath Pal v. Hari Charan Pal 7 CLJ 266, but that was a case where there was a request that a partnership should be dissolved and the learned Judges pointed out that they could not dissolve the partnership in the absence of some of the partners That also I think would be one of that class of cases in which the decree would be refused not on the ground so much of misjoinder' as upon the ground that no effective decree could be passed. Another case of that class is in Madho Ram v. Jagat Singh 52 Ind. Cas. 18 : AIR 1919 All. 322 : 1 UPLK (A) 7. That was a case of a preemption in which the original vendee had transferred the property by creating a trust in favour of a temple and a decree was refused because the temple had not been made a party and it was impossible to obtain possession of the property or to obtain any effective decree without the temples being impleaded. Learned Counsel has also referred me to the case in Raj Chunder Sen v. Ganga Das Seal 31 C 487 : 31 IA 71 : 1 ALJ 145 : 8 Sar. 623 (PC), but that seems to me to have been a case entirely different from the one with which I am concerned. It was a case in which a decree had been passed that certain payments should be made by various parties one to another and after the decree was passed while an appeal was pending one or other of the parties died. No legal representatives were impleaded and the Appellate Court came to the conclusion that it was impossible to upset the decree without affecting' the rights of persons who were no longer in the array of parties. That again seems to have been a case where the appeal was dismissed not so much for nonjoinder but because no effective decree could be passed in the absence of some of the parties.
6. On the other side there is the case in Jagannath Mandal v. Amulya Krishna Kundu AIR 1927 Cal. 794 : 104 Ind. Cas. 576 : 46 CLJ 118, which is based upon the case in Mahomed Ishaq v. Sheik Karamul Huq 12 CWN 84 : 6 CLJ 558. These two rulings affect the second proposition which the Courts below have relied. Those Courts have come to the conclusion that Ram Sarup could not be impleaded because the claim against him was barred by limitation. They have overlooked the fact that no claim was made against him at all. The two cases to which I have referred have laid down that the rules of limitation apply only to claims. The fact that a claim is barred against a particular defendant does not prevent that defendant being impleaded pro forma as Ram Sarup was impleaded in this case. A similar principle emerges from the decision in Chaudhri Jahangira v. Sarup AIR 1930 All. 309 : 123 Ind. Cas. 828 : Ind. Rul. (1930) All. 444 : 11 RD 327. That was a case in which under the provisions of Section 194, Agra Tenancy Act, a suit against a tenant for arrears of rent could not proceed in the absence of co-sharers other than the plaintiffs. The other co-sharers were impleaded after the period of limitation had expired, but it was held that this did not affect the result as against the defendant tenant. As the learned Judge remarked, the provisions of Section 22, Limitation Act, are that a suit as regards a new defendant impleaded after the institution of the suit shall be regarded as having been instituted when he was made a party and the suit against the tenant defendant would consequently be deemed to have been instituted when it was instituted and not when the pro forma defendants were impleaded. The same principle seems to me to apply to the case before me. Even if it is admitted that the suit could not proceed until Ram Sarup was a party to it, still once he became a party the suit could not fail for non-joinder and the period of limitation against the contesting defendant Kunj Behari Lal could not be affected by the fact that Ram Sarup was impleaded after the period of limitation bad expired. I have considered the judgments of the Courts below and I do not think that there is any technical rule or any principle of equity or justice which can justify the conclusions to which they have come. This does not appear to be a case where the defendant can suffer in any way by the failure of the plaintiff in the first instance to implead Ram Sarup. It is a pure question of accounting. If Kunj Behari Lal can show that no money is due from him or that only some money is due from him and the rest is due from Ram Sarup or if he can show that the money due from him is due not to the plaintiff bat to Ram Sarup then no doubt the decree must be passed accordingly but the accounts can now be examined in the presence of all the parties and if it is found that any sum of money is due from Kunj Bhari Lal to the plaintiff, I can see no reason whatsoever why the plaintiff should not recover it.
7. In my opinion the decree of the learned Judge of the lower Appellate Court cannot be upheld. The learned Judge has decided only this preliminary question whether the suit should be dismissed merely on the ground of non-joinder and limitation. I set aside the decree and direct that the case shall be remanded to him for decision according to law. The court-fees payable on the appeal shall be refunded. The costs will follow the result. Leave to appeal is granted.
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