L BABU LAL Vs. BABU SATYA NARAIN PRASAD

JUDGEMENT

(1.) This is an appeal from a judgment and decree dated 23 April 1935 of the Civil Judge of Allahabad by which the plaintiffs claim for a sum of money was partly decreed and partly dismissed. In the year 1930 Sat Narain Prasad, a Hindu resident of Allahabad, was manager of a joint Hindu family consisting of himself and his five sons, his nephew Radhika Prasad and two ladies of the family, Mt. Rajeshwari Bibi and Mt. Shyama Bibi, the widows of Sat Narain Prasad's two deceased brothers Shiva Narain Prasad and Govind Prasad respectively. At that time the family stood possessed of considerable immovable property which was assessed to a Government revenue of over Rs. 15,000 and which yielded a net income of about Rs. 20,000 a year. The evidence in the case is somewhat vague and indefinite but it appears that Sat Narain Prasad at that time had incurred certain debts and had also sold portions of family property. What the nature of these debts was and for what purposes they were incurred and what was the extent of the property which he had sold and for what objects is a moot point in the case and the evidence led in the case is much too indefinite to come to a satisfactory finding about it but it leaves an impression that Sat Narain Prasad was not a wise and prudent manager of the family.

(2.) On 6 December 1930 Sat Narain Prasad executed a hundi for Rs. 6000 in favour of a firm called Lachmi Narain Babu Lal which carried on a business of commission agency in the city of Allahabad. The hundi was executed by Sat Narain Prasad personally without disclosing that he was acting as the manager of the family and it was payable in 211 days. The firm Lachmi Narain Babu Lal was a joint Hindu family firm but by a partition amongst its members the entire rights and interests in that family firm have come to be vested in Babu Lal and his two sons. The proprietors of the said firm Lachmi Narain Babu Lal were relations of Sat Narain Prasad by a marriage connexion, the sister's daughter of Sat Narain Prasad having been married to a son of Babu Lai. On 8 December 1930, two days after the execution of the hundi, a sum of Rs. 5500 was paid in currency notes by the firm Lachmi Narain Babu Lal to Sat Narain Prasad with regard to the hundi, Rs. 500 having been deducted for interest due on the hundi in advance. The currency notes handed over by the firm Lachmi Narain Babu Lal to Sat Narain Prasad were five currency notes of Rs. 1000 each and one currency note for Rs. 500. The amount of this hundi not being paid on the due date it was renewed by a fresh hundi on 2 July, 1931 for Rs. 6000 payable in 195 days.

(3.) On 28 September 1932, Sat Narain Prasad and his nephew Radhika Prasad and other members of the family executed an agreement by which they appointed an arbitrator for partitioning the family property and for making provision for the debts incurred by Sat Narain Prasad which were binding on the family. On nth October 1932, the arbitrator gave an award by which he divided the family property into several lots, one being allotted to Radhika Prasad. One lot was allotted to Mt. Rajeshwari Bibi, the mother of Radhika Prasad, one lot was allotted to Mt. Shyama, widow of Govind Prasad this lot being given to her in lieu of her maintenance and one lot was allotted to the sons of Sat Narain Prasad and one separate lot to Sat Narain Prasad. By a decree dated 21 April 1983, this award was made a rule of the Court in a suit between Radhika Prasad on one side and Sat Narain Prasad and his sons on the other side. In the partition mentioned above some provision was made for the payment of some of the debts of Sat Narain Prasad. With regard to other debts, it was stated in the award that they were improper debts and were not binding on the family property and no provision was made for the payment of the hundi executed by Sat Narain Prasad in favour of the firm Lachmi Narain Babu Lai. There being a default in payment of the hundi on the part of Sat Narain Prasad and after making a demand for payment the firm Lachmi Narain BabuLal which is now represented by Babu Lal and his two sons raised an action in the Court of the civil Judge of Allahabad for recovery of a sum of Rs. 7700 being the principal sum and interest due on the hundi against Sat Narain Prasad and his five sons, his nephew Radhika Prasad, and the two ladies of the family Mt. Rajeshwari Bibi and Mt.Shyama. The plaintiffs claim shortly stated was that the money borrowed on the hundi of 6 December 1930, was borrowed by Sat Narain Prasad as a manager of the joint family for legal necessity and the entire family property irrespective of the partition of 1932 was answerable to the plaintiffs claim. The suit was contested on separate defences by Sat Narain Prasad's sons, by Radhika Prasad and by the two ladies of the family, Mt. Rajeshwari Bibi and Mt. Shyama Bibi and a number of defences were raised by them. The trial Judge found that legal necessity for borrowing money on hundi was not proved but that out of the amount borrowed a sum of Hs. 3000 was spent for the benefit of the family. He further found that the male members of the family and the family property in their hands were liable to the extent of Rs. 3000 tad with regard to the balance of the claim defendant 1 alone was liable. He further found that the property in possession of the ladies was in lieu of maintenance and that the property in their possession can only be sold if necessary subject to their right of maintenance and possession. In the end he passed a decree in the following words: The suit is decreed with costs ex parte against Sat Narain Prasad, defendant 1. In the decretal amount the liability of defendants 2 to 6 will be only for Rs. 3000 and that too to the extent of the property in their hands which they got on partition. Defendants 2 to 6 will get half their costs from the plaintiffs.