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Ramesh Chandra Das v. National Tobacco Company Of India Ltd.

Calcutta High Court
Jun 11, 1940
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Structured Summary of the Provided Opinion

Factual and Procedural Background

The plaintiff-appellant acted as the agent at Bakarganj for the sale of the defendant-respondent's cigarettes; the defendant-respondent is a company with offices in Calcutta. The defendant-respondent sued in the Calcutta Court of Small Causes to recover certain moneys and obtained an ex parte decree. The plaintiff then instituted a fresh suit in the Munsif's Court at Bakarganj seeking to set aside that Calcutta decree and for a perpetual injunction restraining execution. Both lower courts ruled in favour of the defendant-respondents. The appellant appealed, advancing several points through his counsel, Mr. Guha.

Legal Issues Presented

  1. Whether the Calcutta Court of Small Causes had jurisdiction, given the appellant's contention that the contract of agency was entered into at Bakarganj where the defendant resides and carries on business and that the entire cause of action arose at Bakarganj.
  2. Whether the respondents obtained leave under Section 80 of the Presidency Small Cause Courts Act before instituting the suit in the Calcutta Court of Small Causes, and if absence of such leave rendered the prior decree void.
  3. Whether service of summons in the Calcutta Court of Small Causes suit was valid, given the appellant's contention that no summons was served on him.
  4. Whether the evidence of the postal peon (examined to prove service) should have been rejected in its entirety because he was declared a hostile witness and whether the admission extracted in cross-examination (that he tendered a registered postal cover which the appellant declined to accept) could be relied upon.

Arguments of the Parties

Appellant's Arguments

  • The contract of agency was entered into at Bakarganj where the defendant resides and carries on business; therefore the Calcutta Court of Small Causes lacked jurisdiction.
  • The respondents did not obtain the required leave under Section 80 of the Presidency Small Cause Courts Act before instituting the Calcutta suit.
  • No summons was served on the appellant in the Calcutta Court of Small Causes suit.
  • The postal peon was a hostile witness whose entire evidence should have been rejected; the admission in cross-examination regarding tendering the registered cover to the appellant should not have been relied upon.

Respondent's Arguments

This opinion does not contain a detailed account of the respondents' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Kasiswar Goswami v. Amirudain (1919) 6 A.I.R. Cal. 652 Held that the mere fact that a decree was obtained by false evidence is not, by itself, sufficient to set it aside; the case must be tainted by fraud. Used to support the proposition that setting aside an ex parte decree requires proof of fraud, not merely false evidence.
Jhanda Singh v. Lachmi (1920) 7 A.I.R. Lah. 408 Held that no fresh suit lies to set aside an ex parte decree (as against adult parties) not tainted by fraud; objections to an ex parte decree should be raised by proper proceedings in that suit (e.g., Order 9, Rule 13 Civil P.C., review, or appeal). Applied to emphasize that the appellant's fresh suit to set aside the ex parte decree was not the proper remedy absent fraud.
Ibrahim Harun Jaffer v. Jusuf Hossian Jaffar (1920) 7 A.I.R. Bom. 351 Stated that courts will entertain a suit to set aside a decree only on certain grounds, principally where the decree was obtained by fraud; Order 9, Rule 13 prescribes the course for parties against whom an ex parte decree has been passed. Quoted to reinforce that fraud is the recognized ground for a separate suit to impeach a decree and that statutory remedies exist for ex parte decrees.
Narsingh Das v. Bibi Bafikan (1910) 37 Cal. 197 Laid down that a fresh suit will not lie to set aside a decree on the mere ground of non-service of summons, though a suit may be maintainable on the ground of fraud. Relied upon to reject the appellant's attempt to set aside the decree solely on the ground of non-service.
Abdul Majumdar v. Mohamad Gazi (1894) 21 Cal. 605 Held that a suit will lie to set aside a decree when it is impeached on the ground not merely of non-service but of fraudulent suppression of the summons and causing a false return of service to be filed. Referenced to distinguish cases of mere non-service from cases involving fraudulent suppression or false return; the present case lacked evidence of such fraud.
Baluram v. Bai Pannabai (1911) 35 Bom. 213 Where a summons was sent by registered post and the cover was returned endorsed "refused to take", the court may infer sufficient service under Section 27 of the General Clauses Act. Applied by analogy to support the inference of valid service where a registered cover was tendered and marked or shown to have been refused.
Hari Pada Dutt v. Joy Gopal Mukherji (1935) 39 C.W.N. 934 Held that a summons sent by registered post and returned with endorsement "refused" is prima facie evidence that the addressee had an opportunity to accept it; to invalidate such service, the defendant must prove affirmatively that it was never tendered or he never had an opportunity to accept it. Used to support the conclusion that service by registered post with a "refused" endorsement is valid unless the defendant proves otherwise; strengthened the court's acceptance of the postal peon's account.
Praphulla Kumar v. Emperor (Full Bench) Overruled earlier decisions and held that there is no absolute rule that the evidence of a witness who has been treated as hostile must be rejected either in whole or in part. Relied upon to justify the trial courts' acceptance of parts of the postal peon's testimony given in cross-examination despite his being declared hostile.
Sohrai Sao v. Emperor (1930) 17 A.I.R. Pat. 247 Explained that declaring a witness hostile does not preclude relying on admissions elicited in cross-examination; cross-examination may be used to obtain truth or admissions. Quoted to reject the appellant's contention that the entire testimony of a hostile postal peon must be disregarded, affirming the courts' discretion to accept admissions made in cross-examination.
Khijiruadin v. Emperor (1926) 13 A.I.R. Cal. 139 Referenced as an example of earlier decisions supporting a stricter view regarding hostile witnesses (which was later criticized/overruled). Mentioned to show earlier authority that had been questioned and effectively displaced by subsequent Full Bench authority cited by the court.
Mokbul Khan v. Emperor Mentioned as an instance where some judges had endorsed the strict approach to hostile witnesses (i.e., that parts of evidence could not selectively be accepted). Cited as an example of conflicting earlier authority that the court considered and distinguished in accepting the Full Bench position.
Faulkner v. Brine (1858) 1 F & F 254 Historical reference cited in relation to the origin of the stricter view on hostile witnesses. Mentioned as part of the jurisprudential history that earlier Indian decisions had relied upon but which the court treated as not determinative in light of later Full Bench authority.

Court's Reasoning and Analysis

The court proceeded issue by issue, applying findings of fact, statutory presumptions, rules of practice, and precedent as follows:

  1. Jurisdiction: Both lower courts had found on the evidence that the contract of agency had been entered into in Calcutta. The appellate court treated this as a factual finding and concluded the appellant's jurisdictional contention was therefore resolved by fact-finding below.
  2. Leave under Section 80: The appellant bore the burden of establishing that the leave required by Section 80 of the Presidency Small Cause Courts Act had not been obtained before the Calcutta suit was instituted. The appellant made no attempt to discharge this burden. Consequently, the appellate court accepted the lower court's reliance on the presumption in Section 114 of the Evidence Act that judicial and official acts have been properly performed, and held that the presumption that leave had been granted was not rebutted.
  3. Service of Summons: The court observed two separate answers to the appellant's contention of non-service:
    • In general, mere non-service of summons, absent fraud, is insufficient ground for a subsequent suit to set aside a decree.
    • On the facts, the mode of service adopted (sending the summons by registered post) was not irregular and the postal peon's evidence established that the cover was tendered to the appellant and refused. The court relied on a rule of practice (the proviso to Rule 18 of Order 5 of the Rules of Practice of the Court of Small Causes) permitting a summons to be sent by post on application, and on the General Clauses Act (Section 27) which deems service by registered post to be effected when properly addressed, prepaid and registered, unless the contrary is proved.
    The court also cited Bombay and other decisions (e.g., Baluram and Hari Pada Dutt) holding that a returned registered cover marked "refused" permits an inference of valid service unless the defendant proves otherwise. Here, the postal peon gave direct evidence that the cover was tendered and refused.
  4. Hostile Witness Rule and Postal Peon's Evidence: The appellant contended that because the postal peon was declared hostile and was cross-examined, his entire evidence should have been rejected. The court rejected this absolute approach. It explained that while in some criminal contexts a jury must be cautioned about a hostile witness, there is no rule of law that in civil cases the testimony of a hostile witness must be wholly rejected. The court relied on Full Bench authority (Praphulla Kumar v. Emperor) and Sohrai Sao v. Emperor to justify the discretion to accept admissions or parts of the testimony elicited in cross-examination. Because the postal peon in cross-examination admitted tendering the cover and the appellant refusing it, the courts below were entitled to accept that account.
  5. Final appraisal: Given the concurrent factual findings of the lower courts — that a registered cover containing the summons was sent, was tendered to the plaintiff, and was refused — and given the absence of evidence of fraud, the appellate court found no basis to disturb those findings on second appeal.

Holding and Implications

Holding: The appeal is dismissed with costs.

Implications:

  • The direct effect is that the ex parte decree obtained by the defendant-respondent in the Calcutta Court of Small Causes stands, and the appellant's separate suit in the Munsif's Court at Bakarganj to set aside that decree and obtain injunctive relief has failed.
  • The court upheld the lower courts' factual findings (contract made in Calcutta; registered-post service tendered and refused) and applied statutory presumptions (Section 114 Evidence Act) and established authorities concerning when a fresh suit to impeach a decree is maintainable (fraud required in many circumstances).
  • The opinion does not announce that it establishes any new legal precedent; it relies on existing authorities and affirms concurrent findings of fact, indicating that no new law was laid down by this decision beyond its application to the facts of this case.


End of summary — based exclusively on the information contained in the provided opinion.

Show all summary ...

1. The facts which gave rise to this appeal are as follows: The plaintiff-appellant was the agent at Bakarganj for the sale of cigarettes of the defendant-respondent who are a company having their offices in Calcutta. The defendant-respondent instituted a suit in the Calcutta Court of Small Causes for recovery of certain moneys due from the plaintiff-appellant and obtained an ex parte decree. Thereafter, the plaintiff instituted a suit in the Munsif's Court at Bakarganj to set aside this decree and for a perpetual injunction restraining the defendant respondents from executing it. Both the Courts below have found in favour of the defendant-respondents. In this appeal the following points have been taken by Mr. Guha on behalf of the appellant 1. The contract of agency was entered at Bakarganj where the defendant resides and has his place of business; the entire cause of action arose at Bakargunj, and the Calcutta Court of Small Causes had no jurisdiction to entertain the suit instituted by the respondents. 2. Leave of the Court of Small Causes under Section 80, Presidency Small Cause Courts Act, was not taken prior to the institution of that suit. 3. No summons was served on the appellant who was cited as defendant in that suit 4. The Courts below erred in not rejecting in its entirety the evidence of a hostile witness, to wit the postal peon, who was examined to prove service, and in relying upon an admission extracted from this witness in cross-examination that he had tendered a registered postal cover (which contained the summons) to the appellant who had declined to accept it.

2. With regard to Mr. Guha's first contention, it is sufficient to say that both the Courts below have found upon the evidence that the contract of agency was entered into in Calcutta, and this point is therefore concluded by a finding of fact. As to the second contention, it appears that the appellant made no attempt to establish his allegation that the leave of the Court of Small Causes under Section 80 had not been obtained prior to the institution by the respondent of his suit in that Court. The burden of establishing this which lay on the appellant has not been discharged. In these circumstances, the lower Appellate Court was right in relying upon the presumption under Section 114, Evidence Act that judicial and official acts have been properly performed, and in holding that the presumption that leave had been granted had not been rebuted. Mr. Guha's next point that there had been no service of summons is answerable in two ways. Firstly, mere non-service of summons is in the absence of fraud not sufficient to support a subsequent suit to set aside the decree, and secondly the mode of service adopted in this case and established by the peon's evidence was not irregular. The grounds upon which a suit to set aside a decree in a previous suit may be sustained have been considered in numerous cases. Reference may be made to a few of these decisions. In Kasiswar Goswami v. Amirudain (1919) 6 A.I.R. Cal. 652, it was held that the mere fact that the decree was obtained by false evidence would not be sufficient by itself to have it set aside by suit. The case itself must be found to be a fraudulent one. In Jhanda Singh v. Lachmi (192O) 7 A.I.R. Lah. 408, it was held that no suit lay to set aside as against parties who were majors an ex parte decree not tainted by fraud, and that the objection that the decree was ex parte could only be taken by a proper proceeding in the suit itself, e.g., by an application under Order 9, Rule 13, Civil P.C., or an application for review, or an appeal to a superior Court. In Ibrahim Harun Jaffer v. Jusuf Hossian Jaffar (1920) 7 A.I.R. Bom. 351 the law was enunciated by MeLeod C.J. at p. 799 of the report in the following terms:

Now it is perfectly well recognized that it is only on certain grounds that the Court will entertain a suit to set aside a decree, and that is if it can be proved that the decree was obtained by fraud. Otherwise there would be no end to litigation.... Order 9, Rule 13 of the Code prescribed the course which should be followed by a party against whom a decree has been passed ex parte.

3. In Narsingh Das v. Bibi Bafikan (1910) 37 Cal. 197, it was laid down that a fresh suit would not lie to set aside a decree on the mere ground of non service of summons though it would be maintainable on the ground of fraud. In Abdul Majumdar v. Mohamad Gazi (1894) 21 Cal. 605, it was held that a suit will lie to set aside a decree when it is impeached on the ground not of mere non-service but of fraudulent suppression of the summons and the causing of a false return of service to be filed. In the present case there is no evidence and therefore no finding that the decree was obtained by a fraudulent suppression of summons, a false return of service or indeed by any fraud whatever. The findings of both the Courts below in regard to the service of summons which are amply supported by the evidence are that the summons was sent from the Court of Small Causes Calcutta, by registered post, that the cover was tendered by the postal peon to the right person, namely, the present plaintiff and that he has refused to accept it. Service through registered post of a summons of the Calcutta Court of Small Causes is now permissible under the new proviso to Rule 18 of Order 5 of the Rules of Practice of that Court. The Rule and the proviso are in these terms:

A summons may be sent by the Court either by one of its officers or by post to any Court (not being the High Court) having jurisdiction in the place where the defendant resides, or carries on. business or works for gain:

Provided that the summons may in any such case, on the application of the plaintiff, be ordered by the Court to be sent by post addressed to the defendant at the place where he resides or carries on business or works for gain.

4. The position created by this rule is fortified by Order 1A, Rule 2 of the Rules of Practice of the Court of Small Causes which attracts the provision of the General Clauses Act (Indian Act 10 of 1897). Rule 2 of Order 1A is as follows:

Section 2, Civil P.C., 1908, as extended to the Court of Small Causes of Calcutta, applies for the interpretation of these rules and the General Clauses Act, 1897, applies for the interpretation of these rules as it applies for the interpretation of a Central Act, made after its commencement.

5. The section of the General Clauses Act, which is material is Section 27:

Where any Act of the Governor-General in Council or Regulation made after the commencement of this Act authorizes or requires any document to be served by post, whether the expression "serve" or either of the expressions "give" or "send" or any other expression is used, then, unless a different intention appears, -the service shall be deemed to be effected by properly addressing pre-paying, and posting by registered post, a, letter containing the document, and, unless the contrary is proved, to have been effected at the dime at which the letter would be delivered in the ordinary course of post.

6. Now the effect of this section when read with Order 5, Rule 25, Civil P.C., has been considered by the Bombay High Court. Order 5, Rule 25 provides for the sending of a summons by post to a defendant residing outside British India. In Baluram v. Bai Pannabai (1911) 35 Bom. 213, a summons was sent by registered post addressed to a defendant in the States of Jaipur and it purported to be sent in accordance with the provisions of Order 5, Rule 25, Civil P.C. The cover was returned with an endorsement "refused to take. The handwriting of Chunilal, postman." It was held that as it appeared that the cover was properly addressed to the defendant and had bean registered, duly stamped, and posted, She Court was entitled to draw the inference indicated in Section 27, General Clauses Act, and to hold that there was sufficient service. In Hari Pada Dutt v. Joy Gopal Mukherji (1935) 39 C.W.N. 934, a summons Rent by registered post under an order made by a Judge on the original side of this Court cinder Rule 11, Chapter VII, Original Side Rules, and returned with endorsement "refused" is prima facie evidence that the addressee had an opportunity to accept it and the service, thus effected, is, therefore, a good and valid service. To invalidate such a service the defendant must expressly prove, to the satisfaction of the Court, that what would happen in the ordinary course did not happen and that he did not get an opportunity to accept it; and for that purpose it is open to him to prove that he never refused it and that it was never tendered to him. A mere denial that it was never delivered to him is not sufficient.

7. In the present case, the circumstances from which service could be legitimately inferred are stronger because the postal peon was examined and deposed that the defendant in the Small Cause Court suit, that is the present appellant, had refused the cover. This brings me to Mr. Guha's last point. He has argued that as the postal peon was declared hostile and cross-examined on behalf of the plaintiff in the Small Cause Court suit his entire evidence should be rejected. With this contention I am entirely unable to agree. In criminal cases - and reference has been made to decisions of this Court in criminal cases which have subsequently been overruled by a Full Bench - the law is that the Judge must caution the jury regarding the credibility of a hostile witness's testimony and must then leave the question of belief or disbelief entirely to the jury. I am aware that there are observations in the decisions in some civil cases which would lend support to the proposition that when a witness is discredited it is not open to the Court to accept a part only of his testimony while rejecting the rest. But, in my judgment, such observations do not elucidate the entire position. When a witness becomes hostile it would in certain cases be unsafe to accept any portion of the testimony which he has rendered in examination-in-chief. To pick and choose between the statements which a witness makes in examination-in-chief under the influence of an animus adverse to the party who has called him would sometimes be an unsound proceeding. But to say that the Court has no discretion to decide whether or not what is elicited from such a witness in cross-examination is the truth is an entirely different proposition. The cross-examiner's very function is not only to get rid of testimony which examination-in-chief has brought on the record, but to strive to extract from the witness the real truth. It would, in my judgment, be quite wrong to hold that a Court is entirely debarred from bringing its judicial discretion to bear on materials which cross-examination elicits and of deciding whether the truth lies there.

8. In the Full Bench case in Praphulla Kumar v. Emperor , it was laid down, overruling the earlier decisions, that there is no such rule of law that the evidence. of a witness who has been treated as "hostile" must be rejected either in whole or in part, or that it must be rejected so far as it favours the party calling the witness or so far as it favours the opposite party. In Sohrai Sao v. Emperor (1930) 17 A.I.R. Pat. 247 at p. 484, Courtney-Terrell, C.J. dealt in the following terms with the contention that the prosecution were not entitled to rely on any part of the evidence of a witness called by them whom they have declared hostile and cross-examined:

I am aware that in India from time to time this curious view of the consequence of declaring a witness hostile has become current. The whole idea has been allowed to grow out of an observation reported as having been made by Lord Campbell in an old Scottish case Faulkner v. Brine (1858) 1 F & F 254. This was accepted by the Calcutta High Court in such cases as Khijiruadin v. Emperor (1926) 13 A.I.R. Cal. 139 and more recently by Gumming and Lort-Williams JJ., in Mokbul Khan v. Emperor . In this latter case the learned Judges said, 'In other words a party cannot be allowed to say that his witness is a truthful witness so far as a part of his evidence is concerned but an untruthful witness so far as some other portion is concerned.' The theory so stated is fallacious. A party is allowed to cross-examine his own witness because that witness displays hostility and not necessarily because he displays untruthfulness. The theory has gained currency owing perhaps to the common belief that the sole object of cross-examination is to discredit the witness whereas its main purpose is to obtain admission, and it would be ridiculous to assert that a party cross-examining a witness is thereby prevented from relying on admissions, and to hold that the fact that the witness is being cross-examined implies an admission by the cross-examiner that all the witnesses' statements are falsehoods.

9. In the present instance, the postal peon admitted in cross-examination that he had tendered the postal cover to the present plaintiff and that he refused to accept it. The Court below have believed this and it is clear that there is no law which precluded them from so doing. It follows that the concurrent findings of the Courts below that the postal cover was tendered to the plaintiff in the present suit and that he refused to accept it cannot be disturbed in second appeal. The appeal fails and is dismissed with costs.