High CourtsDivision Bench(1919) 01 MAD CK 0004

Guruswami Nadar and Others vs T.S. Gopalasami Odayar and Others

Madras High Court · Decided on 22 January 1919 · Citation: (1919) ILR (Mad) 629 : (1919) 19 LW 547 : (1919) 36 MLJ 568

HON’BLE JUDGES
Ayling, J

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Judgment

31 paragraphs · 704 words
1.

This is a suit by the members of a temple committee to recover temple funds which were originally lent on two promissory notes Exhibits E and J

dated 10th January 1893 executed by the late Ratnaswamy Nadar, brother of the 1st defendant father of defendants 2 to 4, and uncle of

defendants 5 to 10. Several promissory-notes were executed in renewal of Exhibits E and J by Rathaswamy Nadar, the last of which were

Exhibits A and A1. The only question is whether there is sufficient evidence to support the Subordinate Judge''s finding that these debts are binding

on the joint family of the defendants of which the deceased Rathnaswamy Nadar was the managing member. In 1893, when the loan was

contracted his brothers were minors and there is evidence that he was carrying on the business of an abkari contractor and that the business was a

joint family business''.

2.

The family have been engaged in the business for a great many years, and indeed for a long time were the best known abkari contractors in

Southern India. It is contended for the appellant that the plaintiffs have not shown that the debt was contracted by the late Rathnaswamy Nadar for

purposes binding on the family. The members of the temple committee who advanced the loan are dead; the clerk whom they called, P.W. 8, was

unable to speak from personal knowledge, and the witnesses connected with the defendants whom the plaintiffs put into the box were not anxious

to help them, so that there is a dearth of direct evidence. The books of the defendants'' firm if produced would show whether the money advanced

was utilised in the business and the debt was treated as a family debt. The plaintiffs summoned the defendants to produce their books, but the

defendants failed to produce them or to explain their failure, and also abstained from going into the box relying on the weakness of the direct

evidence for the plaintiffs. The defendant; were under a duty to produce their books when summoned or to account for their failure to do so; and,

as they have done neither, a presumption arises under S. 114 (g) of the Indian Evidence Act that the books if produced would have been

unfavourable to their case and would have shown that the money was borrowed for the purposes of the business, which is in accordance with

general probabilities of the case. The Privy Council have recently ruled in Murugesani Pillai v. Manikavasaka Desjka Guana Sambanda Paudara

Sannadhi ILR (1917) Mad. 402 : 32 M.L.J. 369 that defendants are not entitled to lie by trusting to the abstract doctrine of onus of proof and

refuse to furnish the court with the best material for its decision, and that if they do so, the court is free to conclude that the evidence if produced

would not have supported the defendants'' case. There was no doubt other evidence for the plaintiffs in that case but the presumption against the

defendants arises whether the plaintiffs have any evidence or not, and in my opinion it is clear enough to shift the burden in this case assuming it to

be on the plaintiffs and to throw on the defendants the onus of proving that the debts in question were not incurred for joint family purposes.

3.

I have assumed that the onus of showing that the debt is binding on the joint family is on the plaintiffs in the first instance as is generally the case

with regard to monies borrowed by the managing member:--In Nogendra Chandra Dey v. Amarachandra Kundu 7 C.W.N. 725 ana Gaupat Rai

v. Muuni Lal ILR (1911) All 135 this presumption has been held to apply even when the manager is carrying on a joint family business but as

pointed out by Chandravirkar, J. in Raghunathji Tarachand v. The Bank of Bombay ILR (1909) Bom. 72 which was not cited in the case last

mentioned, the case of a joint trading family is in many ways exceptional and it appears open to question whether in such a family the presumption

should not be the other way. The appeals should be dismissed with costs.

Ayling, J.

4.

I agree.