ABDUL GAFOOR V. SENSMAL & ORS.

 


ABDUL GAFOORV. SENSMAL & ORS.

 Preface

 It's a corner case in which the main question before the court was that whether an assignment would give cause of action to the court where the assignment was made, though else that courtwou!d have no governance to entertain the suit with respect to the debt which was assigned.

 Data

A plutocrat suit was filed by the complainants SensmalSugarlal, who arenon-petitioners No. l and 2 in this modification operation in the court of MunsifMerta.

 Their case was that the defendant Abdul Gafoor who's petitioner in this Court owed a debt to defendantsNo. 2 and 3 who arenon-petitionersNo. 3 and 4 in this Court and that he executed a document in their favour on FalgunSudi 5, Svt. 2005, whereby he promised to pay off the debt in two instalments.

 According to the complainants, this debt was assigned by defendantsNo. 2 and 3 to them in consideration of a cash quantum which they had attained from them.

 The defendant- supplicant covered the claim on several grounds. One of his expostulations was that he and defendantsNo. 2 and 3 were all residers of Khejarla, that deals between them had taken place at Khejarla and thus the MunsifMerta had no territorial governance to try the case.

The complainants assertion was that the debt was assigned to them by defendantsNo. 2 and 3 at Individ and thus the MunsifMerta had clearly governance to entertain the suit

 It isn't in disagreement that Khejarla is beyond the governance of the MunsifMerta while Individ is within the governance of that court.

 

 Law involved

The applicable portion ofsec. 20 of the Civil Procedure Code on which both the parties calculate runs as follows-Sec 20 (c)"subject to the limitations aforesaid every suit shall be introduced in a Court within the original Limits of whose governance the cause of action, wholly or in part, arises."

 Issues

 Whether assignment of a debt gives to a cause of action in part?

 Arguments

From the side of complainant

 It has been prompted by learned counsel for the supplicant that his customer andnon-petitionersNo. 3 and 4 are all residers of Khejarla, that the deals between them took piece at Khejarla, that the debt, if any, was also outstanding at that place and thus ifnon-petitionersNo. 3 and 4 had brought a suit against the supplicant they couldn't file it in the court of Munsif, Merta. It's prompted that by assigning the debt to the non pleadersNo. 1 and 2, thenon-petitionersNo. 3 and 4 couldn't produce a new forum for this case. According to learned counsel, the cause of action didn't arise within the governance of MunsifMerta and thus he wasn't competent to entertain or decide this case.

 From the side of Defendant

Thenon-petitioner on the other hand contends that since the assignment of the debt took place at Individ within the governance of the MunsifMerta, a part of the cause of action arose within the governance of that court and thus undersec. 20 of the Civil Procedure Code the trial court's decision about its governance is relatively correct.

What's “ Beget of Action”?

 This term has not been defined in the Civil Procedure Code itself. It has still been a subject of interpretation in multitudinous cases, in some cases it has been used in a defined sense and in others in a wider sense. In Halsbury's Laws of England, Third Edition, Volume 1, runner 6, this expression has been explained as follows-"the popular meaning of the expression'cause of action is that particular act on the part of the defendant which gives the complainants his cause of complaint. There may, still, be further than one good and effective cause of action arising out of the same sale. Rigorously speaking"every fact which is material to be proved to entitle the complainant to succeed, every fact which the defendant would have a right to cut', forms an essential part of'the cause of action', which"accrues"upon the passing of the rearmost of similar data."

 Analogous cases

HarnathraiBinjrajvs. Churamoni Shah

It was observed as follows-"it might have been more satisfactory if the rule were elsei.e. that an attorney in taking an assignment of a debt should take similar assignment with only similar right of suing as the assignor had and could sue where the assignor could sue and nowhere differently. I do see difficulties in the present system under which an assignor can produce governance in any place where the Civil Procedure Code applies but I don't suppose it would be right for me to essay to change it."

 This, in our opinion, if we may say so with respect, is a more correct approach in interpreting the law. In malignancy of visualising the vexation to the defendants it was held in the said case that in a suit by an attorney the assignment of a debt is a part of the cause of action

MohanlalJainvs.Madan!a!

 A suit was filed by an attorney of a claim innovated on account stated in jotting. Leave was granted to the complainant under clause (18) of the Letters Patent to institute the suit in the High Court of Calcutta. The defendants presented an operation for cancellation of that rule. It was prompted before that Court that no cause of action had arisen with the governance of that Court on account of the assignment but the view expressed in Cookevs. Gill (4) and Hondvs. Brown (4) was followed.

It was held that the cause of action for the purpose of the governance of the court was an expression of wider import and that cause of action had arisen at Calcutta on account of assignment. The judgment appertained to a number of former opinions of that High Court and other High Courts in support of the view taken therein. The aspirant's learned advocate has not appertained to any after case of that High Court expressing a contrary opinion.

RanapalliNagammavs. RanapalliSathiraju

 It was held by a Division Bench that an assignment of a promissory note by a payee is a part of the cause of action within the meaning ofsec. 20 (c),C.P.C. and the attorney can sue on it in the court having governance where the assignment took place. In that case it was argued from the contrary side that the term'cause of action'should be taken to mean the cause of action on the document sued upon irrespective of the rights of the complainant under it, or in other words the cause of action as it was when the right to sue on the note arose for the first time and in that case the complainant's assignment won't be a part of it.

 This argument was repelled by the learned Judges It was observed by KrishnanJ. that"this suggestion can not be accepted. The term has to be read with reference to the suit introduced by the complainant, dealt with undersec. 20; it must also mean complainant's cause of action,"

. Judgement

 The authorities of High Courts above in favour of the view that an assignment of a debt is itself a part of the cause of action and thus a suit can be brought in the court within whose governance the assignment has been made. They're of opinion that the expression'cause of action'means all that pack of data which it would be necessary for the complainant to prove, if covered in order to support his right to the judgment of the court. In the case of assignment of a debt the complainant will be bound to prove that the debt was assigned in his favour by the assignor and thus the assignment is a part of the cause of action. It similar assignment is made within the governance of a court that court would be competent to entertain and decide the suit.

 

 The contrary opinion expressed in the case of Jupiter General Insurance Co,Ltd.vs. Abdul Aziz gives a veritably defined meaning to the term" cause of action". This term has been espoused from the EnglishLaw.However, it could define the term consequently, If the council in India wanted to give it a different meaning. Since it has not been defined in a different sense, it would be more proper to given it the same meaning in which it has been understood and interpreted by the learned Judges in England. The maturity of Judges in India have also interpreted the term in the same sense and thus, we don't see good reasons to depart from that view. In the first place, we don't suppose that an assignment of debt would be made by a creditor and accepted by a transferee simply to kill a debtor. Such a case, if any, would be veritably rare. Also, indeed if there be some similar case, it's for the council to suppose about the remedy.

 

 Thus, is that in a suit brought by an attorney of a debt, the cause of action incompletely arises because of the assignment of debt and thus the court within whose territorial governance the assignment is made would be competent to entertain and decide the suit subject course to the financial and other limitations..

 

 The trial court framed issue regarding its governance and decided it in favour of the complainants.

 

 Observation

 This was a corner case in which the main question before the judges was that whether an assignment would give cause of action to the court where the assignment was made, though else that courtwou!d have no governance to entertain the suit with respect to the debt which was assigned. The judges through pertaining colorful case laws came to the decision that the cause of action comes under the governance of the court.

 The judges also came to the decision that in a suit brought by an attorney of a debt, the cause of action incompletely arises because of the assignment of debt and thus the court within whose territorial governance the assignment is made would be competent to entertain and decide the suit subject course to the financial and other limitations..

References:

https://www.lawyerservices.in/Star-India-Private-Limited-Versus-Leo-Burnett-India-Private-Limited-2002-09-24

https://enhelion.com/blogs/2019/06/08/star-india-private-limited-v-leo-burnett/

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