New Era Stores and Another v Ocean Trading Company (Civil Appeal No. 13 of 1950)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
A plaint must contain a statement of the material facts on which the plaintiff relies. Where a plaintiff's cause of action depends on a statute, all facts necessary to bring the claim within that statute must be pleaded. The trial court erred in finding liability under the Fraudulent Transfer of Business Ordinance when no facts were pleaded to bring the claim within that statute and the issue was not raised. Appeal allowed and re-trial ordered with leave to amend the plaint.
Outcome
Matter remitted to Resident Magistrate's Court for re-trial with leave to amend plaint
Facts
Respondents sued appellant firm for Sh. 364/05, being the balance of price of goods sold and delivered in April 1948. At the time of sale, J. P. Patel was sole proprietor of the firm. Before March 1949, the firm belonged to G. G. Shah, R. L. Shah and S. Patel in partnership. S. Patel dropped out on 1 March 1949. Before summons was served, the firm changed hands again and S. D. Shah and K. T. Shah became the new owners. The four Shahs entered appearance and filed identical defences denying liability on the ground they were not members of the firm when the debt was contracted. The trial court accepted these facts but held the four Shahs liable by virtue of section 3(1) of the Fraudulent Transfer of Business Ordinance 1930.
Issues
- Whether on the pleadings as they stand it was open to the trial court to decide the question of vicarious liability under the Fraudulent Transfer of Business Ordinance when that issue was not raised in the plaint.
Orders
- Appeal allowed.
- Re-trial ordered.
- Leave granted to respondents to amend their plaint to found their claim under the Fraudulent Transfer of Business Ordinance.
- Costs of the appeal, first trial, and re-trial to be costs in the cause.
Rules and key headnotes
Legislation cited (3)
- Fraudulent Transfer of Business Ordinance 1930 s.3(1)
- Civil Procedure Code O.VI r.1
- Civil Procedure Code O.XIX r.4
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.