PHALRAM Vs. AIYUB KHAN

JUDGEMENT

(1.) This was a suit to recover money due on a promissory note, dated the 12th July 1919, for Rs. 600, executed by Mt. Wahid-un-nissa as certificated guardian of her two minor sons. The promissory note in suit was executed in lieu of an earlier promissory note for Rs. 350 executed by the said person on the 17 July 1916.

(2.) It was found by both the Courts below that the promissory note in suit was genuine and for consideration and that the minors, namely, Defendants 1 and 2 were benefited by the loan. Both Courts also found that the original loan of 1916 was taken by the mother for the purpose of financing a certain litigation for the benefit of her two minor sons. The trial Court decreed the plaintiff's claim but the lower appellate Court allowed the defendants appeal and dismissed the suit as against Defendants 1 and 2 on the ground that the guardian was not able to bind the minors estate by means of a promissory note which did not expressly purport to bind the estate. The question which we have to decide in appeal is whether the guardian was able to impose a liability upon the minors estate for the loan incurred on their behalf as evidenced by the promissory note.

(3.) The learned Counsellor the appellant has referred us to several authorities showing that the estate of the minors is held liable for a loan contracted on behalf of the minors if the loan has been contracted for their benefit. In the case of Bhawal Sahu V/s. Baijnath Partab Narain Singh [1908] 35 Cal. 320, the Court held that where there is a promise by a guardian of a minor to pay money which has been expended for necessaries, the estate of the minor will be liable not by reason of the promise, but because the money has been supplied. This is in accordance with the general principles embodied in Section 68 of the Indian Contract Act. In this case we have the finding of both the Courts below that the loan was taken for the benefit of the minors and the loan may well be regarded as a necessity since it was for the purpose of defending litigation. It appears also that the suit which was defended was dismissed and the minors, therefore, actually did benefit by the loan.