GOURI DUTT GANESH LALL FIRM Vs. MADHO PRASAD

JUDGEMENT

(1.) The appellants in this case, who were plaintiffs in the suit, sought to recover a sum of Rs. 65,756.3.0 from two sets of defendants. They originally sued (1) Bhola Nath and his son Brij Behari who were members of a joint Hindu family and (2) Madho Prasad and his sons Sheo Prasad, Shrosagar, Ramsagar and Gangasagar, who were also members of a joint Hindu family of which the first named was karta. In the Court of the Subordinate Judge of Chaibassa, the plaintiffs obtained a decree for Rupees 61,070.7.6 against both sets of defendant and no question arises now as to the amount or the liability of the first set, though owing to the death of Bhola Nath the persons against whom the decree stands have undergone some change. So also in the case of the second set of defendants there has been a change of parties owing to the death of Madho Prasad, but it is admitted that the other four are in the same position as their father and under the same but no greater liability than he was. These defendants are content, if liable at all, to have the decree executed against them for such of the property as they will inherit from their father, feeling themselves bound to follow the doctrine of pious obligation of the sons to pay the father's debts. The two families are most conveniently referred to under the names of their original respective kartas, and their Lordships will deal with the first set under the name of Bhola Nath and the second under that of Madho. The question which has to be decided is whether Madho and his family are liable as well as Bhola Nath and his sons.

(2.) The appellants are a firm of money-lenders carrying on business at Kharagpur in the district of Midnapur in Bengal and at Jugselai in the district of Singbhum in the then Province of Bihar and Orissa. Madho had been for many years in the service of the Bengal Nagpur Railway, but after a year and a half's furlough finally retired at the end of 1926. Prior to 1 April 1924, he had been interested with a younger brother Ramdas Prasad in a contracting business at Panposh, but in that year Ramdas died and the business passed to another contractor until 1926 or 1927 when Bhola Nath and Madho ran it in partnership for a year or two. Meanwhile Bhola Nath undertook other ventures, in particular (a) in 1923 a contract business at Chakradharpur which came to an end in 1924 or 1925; (b) in 1924 mining works at Amghat which closed in 1925; (c) in 1923 he obtained a prospecting licence at Jharbera from the Chief of Gangpur State. This was followed by a lease of dolomite and limestone lying under Jharbera for 30 years granted to one B.K. Sanyal and Bhola on nth September 1925. Sanyal seems to have taken no active part in the business. For these various undertakings loans were obtained from the plaintiffs, generally at 2 per cent. per month, accounts being taken at each Dewali day, a Hindu autumn festival, and the sum then found due for capital and interest carried forward as the next year's principal debt. These, accounts in the ledgers dealing with this business stand for the first two years in the name of Bholanath with varying addresses ; for the next two years in the names of Bholanath and Brij Behari. During this period interest was charged at 2 per cent. per mensem. On 26 October 1927, a fresh account was opened and a document prepared which with its heading must be set out in full.

(3.) Khata account of Madho Prasad and Bholanath Brij Behari at present residing at Panposh dated the 1st Katik Sudi 1984 Sambat. 26 October 1927. Rs. a. p. After adjusting the accounts in presence of each other rupees forty-seven thousand and six hundred and thirty-seven and three annas and three pies was found due on the 1 Katik Sudi 1984 Sambat corresponding to date 26 October 1927 interest to run thereon at Re.1-8-0 per cent. per mensem. [Signed on 4 anna stamp.] 47,637 3 3 Madho Prasad Bholanath Brij Behari by the pen of Bholanath. Dated 26 October 1927. Written on 28-12-27. [Signed] Madho Prasad, by my own pen. Rs. a. p. Dated 26 October. 1927. Rupees forty-seven thousand and six hundred and thirty-seven, annas three and pies three currying interest at Re.1-8-0 per cent. 47,637 3 3 Signed on 19 March 1938. Rs. a. p. Drew Rupees seven thousand for paying royalty to the State. 7000 0 0 Signed, Madho Prasad, by my own pen. Date, 19 March 1938. Signed, Bholanath Brij Behari, by the pen of Bholanath. Date, 19 March 1938. Rupees seven thousand for paying royalty.