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  • 1344 B.S. Section 147(2), Bengal Tenancy Act,
  • provisions of Order 2, Rule 2, Civil P.C.
  • SECTION 43 CONTRACT ACT
  • Order 2, Rule 2, Civil P.C.
  • Order 2, Rule 2, Civil P.
  • Order 2, Rule 2
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Cites
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Citation Codes
Equivalent Citations
citation codes
Case Number
Judges
Acts
  • 1344 B.S. Section 147(2), Bengal Tenancy Act,
  • provisions of Order 2, Rule 2, Civil P.C.
  • SECTION 43 CONTRACT ACT
  • Order 2, Rule 2, Civil P.C.
  • Order 2, Rule 2, Civil P.
  • Order 2, Rule 2
Smart Summary

Factual and Procedural Background

This appeal arises from a suit initiated by the plaintiff in the Court of the Third Munsif at Burdwan for recovery of arrears of durputni rents for the years 1343 and 1344 B.S. There were two defendants: defendant 2 did not contest the suit, while defendant 1 resisted the claim on two grounds. First, defendant 1 claimed to have paid Rs. 49-7-0 annually on behalf of the plaintiff as contribution to choukidari funds and sought to deduct this from the rents payable. Second, defendant 1 contended that the suit was barred under Order 2, Rule 2, Civil Procedure Code (C.P.C.) because the plaintiff's predecessor had previously sued for rent due for 1342 B.S. only, omitting the later years, and thus could not bring a separate suit for the balance. The trial court accepted these defenses and dismissed the suit, a decision affirmed by the District Judge on appeal. The plaintiff subsequently filed this second appeal to the higher court.

Legal Issues Presented

  1. Whether the bar under Order 2, Rule 2, Civil P.C. applies to prevent the plaintiff from suing defendant 2 for arrears of rent when defendant 2 was not a party to the previous suit.
  2. Whether the liability of tenants to pay rent in respect of the durputni is joint or joint and several, and the effect of this characterization on the applicability of the rule in King v. Hoare (1844) 13 M. & W. 494.
  3. Whether the principle enunciated in King v. Hoare, which bars subsequent suits against joint promisors after a decree against one, applies in the context of Indian law considering Section 43 of the Contract Act.

Arguments of the Parties

Appellant's Arguments

  • Admitted that defendant 1 paid Rs. 49-7-0 annually for choukidari funds and that this amount should be deducted from the total rent claimed.
  • Conceded that Order 2, Rule 2, Civil P.C. barred the claim against defendant 1 because he was a party to the previous suit.
  • Contended that defendant 2 was not a party to the previous suit, and since tenants’ liability is joint and several, the plaintiff should be entitled to recover rent arrears from defendant 2 despite the earlier suit.

Respondents' Arguments

  • Relied on the rule in King v. Hoare (1844) 13 M. & W. 494, asserting that a decree against one joint promisor bars subsequent suits against others on the same cause of action.
  • Argued that the previous judgment against defendant 1 is a bar to the suit against defendant 2.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
King v. Hoare (1844) 13 M. & W. 494 Rule that a decree against one joint promisor bars subsequent suits against others on the same cause of action. Examined the applicability of this English rule in Indian law, especially considering Section 43 of the Contract Act and joint and several liability.
Hemendro Coomar v. Rajendrolal ('77) 3 Cal. 353 Held that Section 43, Contract Act, does not abolish the rule in King v. Hoare nor make liability joint and several. Supported the view that the English rule continues to apply in India.
Gurusami Chetti v. Samurti Chinna Manar Chetti ('82) 5 Mad. 37 Followed Hemendro Coomar v. Rajendrolal regarding the applicability of King v. Hoare. Reinforced the position that a decree against one joint promisor bars suits against others.
Shivlal Moti Lal v. Bridhi Chand Jivraj ('17) 4 A.I.R. 1917 Bom. 268 Reviewed cases and agreed with Hemendro Coomar v. Rajendrolal. Supported the continuation of the English rule in India.
Muhammad Askari v. Radhe Ram Singh (1900) 22 All. 307 Held that a judgment against some joint mortgagors is not a bar to suit against others due to Section 43, Contract Act. Presented a contrary view to King v. Hoare, emphasizing joint and several liability under Indian law.
Miss Moselle Solomon v. Martin & Co. ('35) 62 Cal. 612 Contained conflicting judicial opinions on applicability of King v. Hoare under Section 43, Contract Act. No final decision; highlighted judicial divergence on the issue.
Nilratan Mukhopadhya v. Cooch Behar Loan Office Ltd. Reviewed authorities but did not decide applicability of King v. Hoare definitively. Case involved foreign tribunal judgment; thus, bar was not applied.
Dhunpat Singh v. Sham Soonder ('80) 5 Cal. 291 Supported that where liability is joint and several, judgment against one is not a bar against others. Used to argue that joint and several liability negates the merger rule.
Kasi Kinkar Sen v. Satyendra Nath ('10) 7 I.C. 840 Held that liability depends on parties' intention whether it is joint or joint and several. Emphasized construction of contract to determine nature of liability.
Mohendra Nath v. Abinash Chandra ('23) 10 A.I.R. 1923 Cal. 615 Supported joint and several liability of tenants under Contract Act provisions. Reinforced view that liability is joint and several absent contrary contract terms.
Jagan Mohan Sarkar v. Brojendra Kumar Full Bench opinion that suit against some heirs of original tenant is maintainable. Implied joint and several liability of heirs for rent.
Mt. Bindo Bibi v. Ram Chandra ('19) 6 A.I.R. 1919 All. 270 Clarified that Order 2, Rule 2, C.P.C. requires same cause of action and same parties to apply. Used to distinguish applicability of bar under Order 2, Rule 2 between different defendants.
Ramanjulu Naidu v. Aramudu ('10) 33 Mad. 317 Held that cause of action not involved in earlier suit against some joint promisors is not merged and suit against others is maintainable. Supported the court’s view that suit against defendant 2 was not barred.

Court's Reasoning and Analysis

The Court first acknowledged the undisputed deduction of choukidari fund payments from the rent claimed. It then accepted the bar under Order 2, Rule 2, Civil P.C. against the suit on defendant 1, who was party to the earlier suit. The key issue was whether the bar extended to defendant 2, who was not party to the previous suit.

The Court examined conflicting judicial opinions on the applicability of the English rule in King v. Hoare, which bars subsequent suits against joint promisors after a decree against one, in light of Section 43 of the Indian Contract Act. While some Indian courts upheld the English rule, others, notably the Allahabad High Court, rejected it, holding that the statutory provision allowing joint and several liability negated the rule's foundation.

The Court observed that the liability of tenants under Section 146A(1) of the Bengal Tenancy Act is joint and several, which would ordinarily preclude the merger doctrine and the bar under King v. Hoare. Even if the liability were joint only, the Court noted that Order 2, Rule 2, Civil P.C. is not based on merger but on preventing splitting of the same cause of action between the same parties.

Since defendant 2 was not a party to the previous suit, and the claim for rent for 1343 and 1344 B.S. was not included in that suit, the cause of action against defendant 2 was not merged in the earlier judgment. Therefore, the bar under Order 2, Rule 2, Civil P.C. did not apply to defendant 2. The Court relied on the Madras High Court decision in Ramanjulu Naidu v. Aramudu to support this reasoning.

Accordingly, the Court allowed the appeal in part by modifying the decree to grant the plaintiff recovery of rent from defendant 2 after deducting amounts paid by defendant 1, while maintaining the bar against defendant 1.

Holding and Implications

The appeal is allowed in part by modifying the lower appellate court's decree to grant the plaintiff a decree against defendant 2 for the rent claimed, after deducting the amounts paid by defendant 1.

Defendant 1 remains protected by the bar under Order 2, Rule 2, Civil P.C. The Court imposed proportionate costs on defendant 2 at the trial level and made no order as to costs in the appellate courts. The decision clarifies that the bar under Order 2, Rule 2 applies only where the same parties and cause of action are involved, and that the principle in King v. Hoare does not necessarily apply in cases of joint and several liability under Indian law. No new precedent was established, but the ruling resolves the dispute regarding the applicability of the bar in this particular factual scenario.

    Phani Bhusan Mukherjee v. Rajendra Nandan Goswami

    1. This appeal is on behalf of the plaintiff, and it arises out of a suit commenced by him in the Court of the Third Munsif at Burdwan for recovery of arrears of durputni rents from the defendants, for the years 1343 and 1344 B.S. Of the two defendants, defendant 2 did not contest the suit, and the claim of the plaintiff was resisted by defendant 1 alone whose contentions were of a twofold character. The first contention was that there was a payment by this defendant of a sum of Rs. 49-7-0 every year on behalf of the plaintiff by way of contribution to the choukidari funds, and he was entitled to deduct this amount from the annual rents payable. The second defence was that the plaintiff's suit was barred under the provisions of Order 2, Rule 2, Civil P.C. It was averred that in the year 1939, the plaintiff's predecessor brought a suit against defendant 1 claiming rent due in respect of the same durputni, and in this suit, rent was claimed only for the year 1342 B.S. although at the date when the suit was filed, rents for the years 1343 and 1344 B.S. had already become due. The plaintiff, it was said, having omitted to sue for a portion of the claim which arose out of the same cause of action, was not entitled to bring a separate suit for recovery of the balance under Order 2, Rule 2, Civil P.C. Both these contentions found favour with the learned Munsif who dismissed the plaintiff's suit. The decision of the trial Judge was affirmed on appeal by the learned District Judge of Burdwan. The plaintiff has now come up on second appeal to this Court.

    2. It is not disputed by Mr. Sen who appears for the appellant that a sum of Rs. 49-7-0 was paid by defendant 1 every year as contribution to the choukidari funds, and consequently these payments should be deducted from the total amount payable which is as 100 a year. Mr. Sen has also conceded that so far as defendant 1 is concerned, as he was a party to the previous suits, the bar under Order 2, Rule 2, Civil P.C., would apply, and the plaintiff is no longer entitled to claim against him the rents for the years 1343 and 1344 B.S. Section 147(2), Bengal Tenancy Act, it is conceded, has no application to the facts of this ease which is a suit for rent in respect of a tenure and not a holding. Mr. Sen's contention, however, is that as defendant 2 was not a party to the previous rent suit and the liability of the tenants to pay rent is a joint and several liability, the Courts below should have given the plaintiff a decree against defendant 2 for the rents due in respect of the durputni. This contention which was put forward on behalf of the plaintiff in the Courts below was negatived by them on the ground that a decree obtained against one of the joint promisors was a bar to a subsequent suit against others on the principle enunciated in the well known case in King v. Hoare (1844) 13 M. & W. 494 which has been followed by this Court in a series of decisions. The only point for our consideration in this appeal is whether the view taken by the Courts below is right.

    3. It cannot be disputed that there is some conflict of judicial opinion on the point as to how far the rule of law enunciated in King v. Hoare (1844) 13 M. & W. 494 is applicable to this country in view of the express provision of Section 43, Contract Act. In Hemendro Coomar v. Rajendrolal ('77) 3 Cal. 353 it was held by Garth C.J. and Markby J. that Section 43, Contract Act, had not the effect of making the liability of joint promisors joint and several and did not make inapplicable in India the rule of law laid down in King v. Hoare (1844) 13 M. & w. 494 and Brinsmead v. Harrison (1873) 7 C.P. 547. The effect of Section 43, Contract Act, according to their Lordships, was merely to prevent one or some of the joint contractors who might be sued upon the debt to plead abatement of the suit on the ground that his or their co-contractors ought to be made parties defendants. This was a case in which a decree was obtained against one of several joint makers of a promissory note, and it was held that this was a bar to a subsequent suit. This decision was followed with approval by the Madras High Court in Gurusami Chetti v. Samurti Chinna Manar Chetti ('82) 5 Mad. 37. The view taken by the Bombay High Court does not seem to be quite uniform. In Shivlal Moti Lal v. Bridhi Chand Jivraj ('17) 4 A.I.R. 1917 Bom. 268, Macleod J. reviewed all the cases on the point, and agreed with the view taken in Hemendro v. Rajendro Lall ('77) 3 Cal. 353.

    4. The Allahabad High Court in Muhammad Askari v. Radhe Ram Singh (1900) 22 All. 307, took an entirely different view, and it was held by Strachey C. J. and Bannerji J. that a judgment obtained amongst some of the joint mortgagors and remaining unsatisfied, was no bar to a second suit being brought against other mortgagors. It was pointed out by the learned Chief Justice in the course of his judgment that the theory that in the ease of a joint contract, there is a single cause of action which can be sued on only once, depends upon the right of the joint debtors in England to have all the contractors joined as parties to the suit on the contract. In India, such a right has been excluded by the express provision of Section 43, Contract Act, and consequently the foundation of the rule in King v. Hoare (1844) 13 M. & w. 494 has been taken away. The question came up for consideration before this Court in two recent cases, but no final decision was given in either of them. In Miss Moselle Solomon v. Martin & Co. ('35) 62 Cal. 612 Lort-Williams J. agreed with the view taken in Hemendro v. Rajendro Lall ('77) 3 Cal. 353, while Jack J. was definitely of opinion that under Section 43, Contract Act, the liability of joint promisors being both joint and several, there was no question in India of any single cause of action. As, however, both the learned Judges agreed in allowing the appeal upon a different ground, there was no final pronouncement on this point. In the subsequent case in Nilratan Mukhopadhya v. Cooch Behar Loan Office Ltd. , Mitter J. reviewed the earlier authorities on the point, but as that was a case where the earlier judgment was passed by a foreign tribunal, the subsequent suit was held not to be barred, and it was unnecessary for the learned Judges to decide this matter finally.

    5. We may say that there is much to be said against the extension of the rule in King v. Hoare (1844) 13 M. & W. 494, and Kendall v. Hamilton (1879) 4 A.C. 504, to this country. It may be noted that Pollock and Mulla in their commentaries on the Contract Act have given unqualified support to the view taken by the Allahabad High Court in Muhammad Askari v. Radhe Ram Singh (1900) 22 All. 307. In view of the conflict noticed above, the matter can be solved so far as this Court is concerned only by the pronouncement of a larger Bench. We do not think, however, that for the purpose of deciding this case the conflict of opinion is at all material. Mr. Sen argues that as the liability of tenants to pay rent is a joint and several liability, the principle in King v. Hoare (1844) 13 M. & W. 494 is not applicable to the present case. The authorities undoubtedly show that where the obligation is not joint but joint and several, the doctrine of merger does not apply, and a judgment against one of the debtors, without satisfaction is not bar to a suit against others. See Leake on Contract, Edn. 8, pages 722-723. See also Dhunpat Singh v. Sham Soonder ('80) 5 Cal. 291. The question now is whether the liability of the durputnidars to pay rent to the plaintiff is a joint and several liability in the present case. Under Section 146A(1), Ben. Ten. Act, all the co-sharer tenants in a tenure or holding have been made liable to the landlord jointly and severally for the rent payable to the landlord. If Section 146A, Ben. Ten. Act, applies to the present case, the liability of the defendants cannot but be joint and several.

    6. A question may be raised, however, that as the contract of tenancy in this case came into existence much earlier than 1938 when Section 146A was introduced, the liability of the parties ought to be determined according to the law as it existed under old Act. Under the old law, the judicial decisions on the point were not very clear and uniform. In Kasi Kinkar Sen v. Satyendra Nath ('10) 7 I.C. 840 it was held by Mookerjee and Sharfuddin JJ. that when a landlord creates a tenancy in favour of two persons jointly, whether each is liable for the entire rent would depend upon the intention of the parties. The question whether a contract is joint or several or joint and several is a question of construction depending upon the intention of the parties to the contract. This position, it was said, was not affected by Section 43, Contract Act. This was a ease, however, where on the death of the original tenant, the tenancy had devolved upon his heirs jointly, and it was held that the heirs really constituted one body and could not be treated necessarily as persons who made joint and several promises. So far as the original lessees are concerned, the majority of the decisions seem to be in favour of the view that their liability is joint and several unless there is any thing to the contrary in the contract. It should be noticed that in the majority of these cases, reliance was placed in support of this position upon the provisions of Section 43, Contract Act itself. Vide Mohendra Nath v. Abinash Chandra ('23) 10 A.I.R. 1923 Cal. 615. As there was a conflict of opinion on the question as to whether a rent suit could be instituted against some of the heirs of the original tenant, the matter was referred to the Full Bench, and the majority of the Judges, constituting the Full Bench expressed the opinion that a suit against some of the heirs would be maintainable; Jagan Mohan Sarkar v. Brojendra Kumar . It is true that the Full Bench did not say in so many words that the liability of the heirs of the original tenant is joint and several, but that seems to us to be the implication of that decision.

    7. If we hold that the liability of the two tenants in this case to pay rent to the plaintiff was a joint and several liability, no difficulty arises at all, and we can say on the authority of the English decisions themselves that the rule in King v. Hoare (1844) 13 M. & W. 494 is not applicable to such eases. But even if we hold that the liability of the defendants was joint and not joint and several, still then we are of the opinion that the rule in King v. Hoare (1844) 13 M. & W. 494 is not attracted to the facts of this particular case. The foundation of the rule in King v. Hoare (1844) 13 M. & W. 494, and Kendall v. Hamilton (1879) 4 A.C. 504 is that the cause of action in the case of joint contract being one, it is merged in the judgment, and no second suit against the other contractors can be brought upon it. Order 2, Rule 2, Civil P.C. is, however, not based upon the doctrine of merger. It enacts a special rule that if the plaintiff was able to claim a wider and much larger relief than that to which he limited his claim in the suit, and which arises out of the same cause of action he would not be entitled to recover the balance in a subsequent suit. The object of the rule is to prevent the splitting up of the same cause of action and to prevent the same person or persons being vexed twice. To make the rule applicable two things are essential: First, that the previous and the present suits must arise out of the same cause of action ; and secondly, they must be between the same parties. Vide Mt. Bindo Bibi v. Ram Chandra ('19) 6 A.I.R. 1919 All. 270.

    8. So far as defendant 1 is concerned, it cannot be disputed that Order 2, Rule 2, Civil P. Cooperates as a complete bar to the present suit, but so far as defendant 2 is concerned, Order 2, Rule 2 is not directly applicable. The previous judgment can operate as a bar against him only if the cause of action against him is merged in the judgment, but as the claim for rent for the years 1343 and 1344 B.S. was not the subject matter of the earlier suit at all, the cause of action as against defendant 2, so far as this claim is concerned, could not be merged in the judgment. This view is supported by the decision of a Division Bench of the Madras High Court in Ramanjulu Naidu v. Aramudu ('10) 33 Mad. 317. We may say that we are in entire agreement with the reasoning of the learned Judges, and agreeing with that view, we are of the opinion that the principle in King v. Hoare (1844) 13 M. & W. 494, does not apply to the facts of this case even if we assume for the sake of argument that the liability of the two defendants was a joint and not a joint and several liability. The result, therefore, is that we allow this appeal, and modify the decree of the lower appellate Court. The plaintiff will have a decree against defendant 2 for the rent claimed by him after deducting the amount of Rs. 98-14-0 which was admittedly paid by defendant 1, The plaintiff will have proportionate costs from defendant 2 in the trial Court. There will be no order for costs in this Court as well as in the lower appellate Court.

    Sharpe, J.

    9. I agree.

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    Phani Bhusan Mukherjee v. Rajendra Nandan Goswami
    (Jun 20, 1946)