DELHI AUTOMOBILES Vs. SMT. TRISHLA JAIN AND OTHERS

JUDGEMENT

(1.) M /s Delhi Automobiles (Private) Limited with Head office at New Delhi and branches at several places, is a distributor of the Premier Automobiles Ltd., Bombay, who manufacture chassis of Matador Mini Buses besides Manufacturing other automobiles Sanmati Matri Sewa Sangh (Regd) Jagraon placed an order with Delhi Automobiles (Private) Ltd Ludhiana Branch for the chassis of Matador Mini Bus. The delivery of the chassis was made on payment of full price and thereafter the purchaser sent the chassis to the New Model Industries (Private) Ltd., Jullundur for building the body thereon. The purchaser of the chassis needed the Mini Bus for carrying the students who were studying in their institution. After the bus was received from the body -builders, the same was put to use when the purchaser came to know that there was some serious manufacturing defect in the engine and, therefore, it filed the present suit for the recovery of Rs. 1,08,346/ - which included the refund of the price of the chassis; the payment of the body built on the same and interest thereon besides Rs. 10,000/ - as nominal damages. In the suit the following four defendants were impleaded: - -

(2.) THE Premier Automobiles Ltd filed a separate application under Order 1, Rule 10 (2) of the Code of Civil Procedure for sticking off their name from the array of defendants on the plea that on a bare reading of the plaint, it is clear that there is no privity of contract between the plaintiff and defendant No. 2 & therefore contended that plaintiffs had no cause of action against them and, therefore, their name should be struck off. That application was opposed by the plaintiffs who pleaded that at the time of delivery of the vehicle, they were supplied with a warranty card duly executed by the Premier Automobiles Ltd. and, therefore, if any manufacturing defect is found in the vehicle, it was the Premier Automobiles Ltd. who was equally liable along with its distributor and, therefore, was a necessary party and its name could not be struck off The trial Court by a well reasoned order dated 25 -9 -1979 dismissed the application after recording a finding that there was a clear warranty given by the Premier Automobiles Ltd, to the plaintiffs through its distributor and as such they were equally liable along with their distributor Civil Revision No. 2619 of 1979 was filed by the Premier Automobiles Ltd. against the aforesaid order.

(3.) FROM the above it is clear that the Sales Executive of the Ludhiana distributor went to Jagraon when order for Matador Mini Bus chassis was placed and a cheque for Rs. 5,000/ - was delivered to him as advance. On 20 -7 -1977, a bank draft was got prepared by the plaintiff institution through Suit. Trishala Jain in the presence of a Sikh gentleman from the State Bank of Patiala, Jagraon Branch as is deposed to by Gurmej Singh, Manager of that bank who appeared P.W. 1. This witness further testified that he delivered the draft to Smt. Trishala Jain who further delivered the draft to that Sikh gentleman who issued a bill and receipt immediately thereafter in his presence. The bill and the receipt were given by Smt. Trishala Jain to the bank authorities and these were kept in the bank This witness pointed out towards Shri K.S. Oberoi, present in Court, to be that Sikh gentleman, who is the Manager of Delhi Automobiles (Private) Ltd Therefore, it is clear that part of cause of action arose at Jagraon and the finding recorded by the Court below upheld.