ADDEPALLI VENKATA GARUNADHA Vs. AKELLA KESAVA RAMIAH

JUDGEMENT

(1.) The plaintiff, acting Secretary of Sri Kannika Parameswari Viswan Setti Venkataratnam Hindu High School Committee sues for the recovery of Rs. 4,278- 5-9 from the defendants who are the sons of one Venkayya Garu. The plaint allegation is that Venkayya managed the the affairs of the High School and was in possession of considerable funds and that he rendered an account to the Committee of the school and that on going through the account, it was found that the account rendered by him was incorrect and that a sum of Rs. 4,000 and odd was with him and that the defendants who are his heirs are bound to pay the amount to the plaintiff. The defendants raised various contentions and the Subordinate Judge of Bezwada dismissed the plaintiff's suit on the ground that the plaintiff had no cause of action against the defendants. On appeal the District Judge of Masulipatam reversed the decree of the Subordinate Judge and remanded the suit to the lower Court for taking accounts. Against the decree of the District Judge the defendants have preferred this appeal.

(2.) The point for determination in this appeal is whether the plaintiff has a cause of action against the defendants. The Hindu High School at Bezwada was managed by a Committee called Sri Kannika Parameswari Hindu High School Committee till November 1915. The Committee was registered under the Societies Registration Act of 1860. Owing to lack of funds or other reasons, the Committee transferred the institution and its properties to Sri Kannika Parameswari Visvam Chetti Venkataratnam Hindu High School Committee which was also registered under the Societies Registration Act of 1860. This transfer is evidenced by Ex. F, dated 18th November 1915. The contention of the appellants is that when the first Committee transferred all its rights to the second Committee, it did not transfer any outstanding belonging to the first Committee and, therefore, the plaintiff who is the Secretary of the second Committee is not entitled to sue the defendants for any sum of money that might be found due to the first Committee. From the terms of F, it is clear that the first Committee transferred all its assets and liabilities in connection with the Hindu High School at Bezwada to the second Committee. In para, 2 the recital is:-- "Whereas the members of your Committee applied on 5th September 1915 praying that the management of Sri Kannika Parameswari Hindu High School at Bezwada and the entire properties thereof be transferred to your Committee on condition of your Committee discharging the debts due by the said High School Committee and in pursuance of the terms of the memorandum thereto attached, we have agreed thereto and the members of our General Committee have passed a resolution No. 8 on 19 September 1915 to the effect that our General Committee should be dissolved, that the management of the school as well as the properties should be transferred to your Committee subject to the terms of the said memorandum" etc., and in the operative portion of the deed there is this clause:-- "Therefore in accordance with the said re-solution we have hereby transferred to you the management of the school and delivered possession to you of the immoveable properties belonging to the said school worth about Rs. 30,000 and specified in schedules of moveable and immoveable properties." The appellant wants to rely upon the fact that in the schedule of assets this debt due from Venkayya is hot mentioned; but from the tenor of the document and from the recitals therein it is quite clear that the entire properties of the school were transferred to the second Committee. As the learned Judge remarks though there is no list of debts in the schedule to Ex. F, the debts of the old Committee incurred in connection with the school were, discharged by the second Committee. One of the recitals is: With this sum and with the sums which might be received hereafter the debts of the school should be discharged.

(3.) The second Committee did undertake to discharge the debts of the first Committee; and though no list of debts was attached to Ex. F, the second Committee was bound to pay all the debts of the first Committee. It is not necessary that when one Committee transfers all its assets to another Committee there should be a list in order to pass the title of the first Committee to the second Committee with regard to the outstandings. In this case the second Committee took over all that the first Committee possessed on behalf of the Hindu High School, Bezwada. The right of the first Committee to sue for and recover any amount due to that Committee did pass to the second Committee and the plaintiff is, therefore,, entitled to bring a suit.