Translate
Text Highlighter

Bookmark

PDF

Share

Report a problem
AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • J.Section 6(e) of the Transfer of Property Act
Are you a practicing lawyer?
Enhance your digital presence and reach by creating a Casemine profile.
Upload pleading to use the new AI search
Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • J.Section 6(e) of the Transfer of Property Act
Smart Summary

Factual and Procedural Background

The suit in question was instituted on 9th March 1934 by T.S Abdul Kuddus Sahib in the Court of the Subordinate Judge of Chingleput, seeking Rs. 15,000 as damages for the wrongful termination of a lease and unlawful entry upon leased premises by the defendants, who are the appellants. The lease, dated 9th September 1930 for a three-year term, involved a cinema theatre and related shops with an agreement to share rents equally between lessors and lessee. The plaintiff alleged that the lessors wrongfully ousted him and damaged or removed his property, causing loss of profits and damage amounting to Rs. 15,000. On 17th May 1937, the plaintiff sold all his assets, including the "profit and loss" of the suit, to the respondent under a registered deed of sale. The plaintiff died five days later. Subsequently, the plaintiff’s sister, brother, and the respondent each applied to continue the suit; the Subordinate Judge allowed only the respondent’s application. The lessors appealed, and the appeal was heard by Wadsworth, J., who upheld the decision in favor of the respondent. The appellants then brought the matter before the present court.

Legal Issues Presented

  1. Whether the right to continue a suit for damages filed in the Court of the Subordinate Judge can devolve upon a third party (the respondent) through an assignment or sale of the suit's "profit and loss"?
  2. Whether the respondent, as assignee under the deed of sale, has the legal right to continue the suit originally instituted by the plaintiff?

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Glegg v. Bromley Establishes that a mere right to sue cannot be transferred; assignment of a suit for damages in contract or tort is not permitted. Accepted as correctly stating the law, indicating that the right to conduct the suit could not be assigned to the respondent.
Subhadrayamma v. Venkatapati Raju Privy Council endorsement of the principle that a right to sue is not assignable. Confirmed the legal principle applied to the present case, reinforcing that the respondent could only acquire the fruits of the suit, not the right to continue it.

Court's Reasoning and Analysis

The court examined Section 6(e) of the Transfer of Property Act, which prohibits the transfer of a mere right to sue, particularly for damages in contract or tort. While the plaintiff could assign the benefit of any decree (the fruits of the suit), this did not entitle the assignee to conduct the proceedings. The deed of sale to the respondent was construed as conferring only the right to the fruits of the suit, not the right to continue it. Given that the suit was solely for damages arising from wrongful entry, the court held that the respondent could not lawfully continue the suit. This reasoning was supported by authoritative precedents, including Glegg v. Bromley and Subhadrayamma v. Venkatapati Raju.

Holding and Implications

The appeal is allowed.

The court reversed the decision allowing the respondent to continue the suit, holding that the right to conduct a suit for damages is not transferable by assignment or sale. Consequently, the respondent does not have the legal right to continue the suit originally instituted by the plaintiff. The decision directly affects the parties by denying the respondent's claim to continue the suit, and no new precedent beyond the application of established law was set.

    M.T Rajamanickam Chetty & Another v. T.R Abdul Halim Sahib

    (Delivered by The Chief Justice).

    The question involved in this appeal is whether the right to continue a suit filed in the Court of the Subordinate Judge of Chingleput has devolved upon the respondent. The suit was instituted by one T.S Abdul Kuddus Sahib on the 9th March, 1934. The plaintiff asked for a decree for Rs. 15,000 as damages flowing from the wrongful termination of a lease in his favour and the entry upon the leased premises of the defendants who are the appellants. The lease was dated the 9th September, 1930 and was for a term of three years which commenced on the 15th of that month. The premises leased consisted of a building which was being used as a cinema theatre. The agreement between the parties was that the lessors and the lessee should share equally in the rents of certain shops which were on the premises and the moneys derived from the letting of the theatre for entertainments. The plaintiff averred that the lessors resented the fact that he was entitled to half the rents of the property and as the result of this they entered upon the premises wrongfully and ousted him therefrom. He also averred that valuable articles left by him upon the premises had been removed and that other articles had been damaged. The sum of Rs. 15,000 was made up of profits which he claimed he had been deprived of as the result of the wrongful action of the appellants and the loss he had suffered as the result of the removal from the premises of articles belonging to him. The plaintiff's claim was based entirely on the alleged wrongful action of the appellants as the two concluding paragraphs of the plaint, Nos. 18 and 19, emphasise. They read as follows:

    “18. The plaintiff claims an aggregate sum of Rs. 15,000 by way of damages against the defendants and pay a Court-fee of the value of Rs. 937-7-0.

    19. The cause of action for this suit arose at Conjeevaram within the jurisdiction of this Honourable Court on 9-3-1931 the date when the defendants wrongfully dispossessed the plaintiff and subsequently de die in diem till 9-9-1931 during which period the defendants wrongfully dispossessed the plaintiff in breach of the terms of the agreement.”

    On the 17th May 1937 the plaintiff sold the whole of his assets to the respondent under a registered deed of sale. The sale deed has not been printed in full and it is said that the portion which has been printed has not been correctly translated. It is, however, common ground that the respondent bought “the profit and loss” of this suit and that the deed purported to confer upon him the right to conduct it. The plaintiff died five days later after its execution. The plaintiff's sister, his brother and the respondent each applied to the Court of the Subordinate Judge to be allowed to continue the suit. The sister and the brother each claimed the right as the legal representative of the deceased. The respondent claimed under the deed of sale of the 17th May 1937. The Subordinate Judge dismissed the applications of the sister and the brother, but granted that of the respondent. The defendant lessors then appealed to this Court. Their appeal was heard by Wadsworth, J. who concurred in the decision of the Subordinate Judge so far as it concerned the respondent. The sister and the brother did not contest the Subordinate Judge's finding that they were not entitled to be brought on record. This appeal is from the judgment of Wadsworth, J.

    Section 6(e) of the Transfer of Property Act says that a mere right to sue cannot be transferred, and it is accepted by the learned Counsel that as the result of this provision there cannot be an assignment of a suit which has been filed for the purpose of recovering damages, either in contract or in tort. It is lawful, however, for a plaintiff in a pending suit to assign the benefit which he may obtain under the decree to be passed in the suit; but this does not give the assignee of the fruits of the action a right to interfere in proceedings in the action—vide Glegg v. Bromley(1) which was accepted by the Privy Council as correctly stating the law in Subhadrayamma v. Venkatapati Raju(2). Therefore the right which the plaintiff purported to confer upon the respondent of conducting this suit was ineffective. All that the deed could confer upon him was the right to the fruits of the litigation.

    The Court has merely to consider the nature of the suit and as the plaint can only be read as embodying a claim for damages resulting from the alleged wrongful entry of the appellants upon the demised premises, the suit cannot be continued by the respondent.

    For these reasons we allow the appeal with costs here and below.

    Appeal allowed.

    N.R.R

    Use AI to get other relevant cases.

    Comments

    M.T Rajamanickam Chetty & Another v. T.R Abdul Halim Sahib
    (Oct 24, 1940)