Case: Pratapray Manmohandas Vs. Bombay Bullion Association Ltd

Clearing House Committee to give an opportunity to the appellant to submit his kaplis because that was the meaning of the words "and can thereafter, if such a kapli is not submitted, the Clearing House Committee can declare him a defaulter." In other words the Committee had to give the member a locus paenitentiae and that after giving his explanation a member could still submit a kapli and escape the penalty of being a defaulter. From the conduct of the appellant and his counsel however it appeared quite clearly that having challenged the jurisdiction of the Committee and having told them that they could not proceed in the absence of reference to arbitration the appellant had no intention of giving the Kaplis. 7. Two questions have been raised in this appeal; (1) the question of interpretation and (2) that no opportunity was given after the decision was made against the appellant to give the kaplis. The submission of the respondents on the other hand was that the appellant had deliberately made a false allegation that after he made a submission he was asked to leave. This was to buttress his plea that the matter was decided in his absence. The courts below have found that whether an opportunity had been given to the appellant or not, he had no intention of giving his kaplis. Issue No. 5 was specific on this point. That issue was "whether the appellant and his legal advisers voluntarily left the meeting after indicating that the appellant was not going to give the kaplis" and that was the principal question which has been raised throughout the course of these proceedings. Even in the statement of the appellants case he has put in the forefront of the questions for decision the question whether the appellant left the meeting dated June 21, 1949, voluntarily after indicating his unwillingness to submit the kaplis. The finding of both the courts on this question was against the appellant. In our opinion that is fully justified by the evidence on the record. According to the evidence days were fixed by the Association for the settlement of all transactions which had been entered into for that period. According to the chart of Bombay Bullion Exchange settlement had to be made, i.e. the monies had to be paid by 3.30 p. m. on June 21, 1949. The appellant made it clear, however, that he was not going to make the payment in accordance with the requirements of the Valan Day; on the other hand he stated that he will pay after the arbitration award was made. The evidence produced by the respondents makes it abundantly clear that the contention of the appellant was that no action should be taken unless the arbitration which he had asked for had been disposed of and after saying that he went away. This is clear from the Attendance Book of Mr. Trikamdas Dwarkadas solicitor. The respondent Association was therefore justified in taking the action that it did. The minutes of the proceedings of the Clearing House Committee dated June 21, 1949, also show that the appellant and his legal advisers stated that they wanted to go to arbitration and that no action should be taken against them until the arbitrators had given their award. It is stated therein that the appellant admitted that the transactions which his solicitor said were fictions were entered in his books and they had been rajued (tallied) and that he had shown the transaction in his olias" (clearance sheet). All this indicated that the contention raised by the appellant was false and had been raised in order to gain time. In these circumstances it cannot be said that the respondent Committee acted without giving due consideration to the facts of the case or in any precipitate manner. 8. Bye-law 155(4) reads :"If any member does not submit a kapli in the prescribed form in respect of the amount found claimable from him to his party (creditor), the Clearing House Committee shall call him and demand an explanation from him and can thereafter, if such a kapli is not submitted the Clearing House Committee can declare him a defaulter." That clause requires that in the event of default of submission of a kapli the Clearing House Committee shall call the defaulter and demand an explanation and thereafter, if such kapli is not submitted, declare him a defaulter. It was contended that the meaning of this is that first the Clearing House Committee is to demand an explanation and after such an explanation is given, time has to be given for the purpose of enabling the person not giving the kapli to submit his kaplis. In our opinion the interpretation of the learned Chief Justice of the High Court is in consonance with the language used i. e. first the explanation is called and after explanation is given and some decision is arrived at in regard to the validity of the reasons for not giving the kaplis then the person complained against can file the Kaplis but it does not mean that the time to be given has to be one or half an hour or any other specific period. 9. As we have said above the appellant had made it clear that he was not going to make the payment and had just left after making his submissions. It is not a requirement of the bye-law that the Clearing House Committee should call the person defaulting either by telephone or by letter or by giving him a notice and considering the promptitude with which the payments have to be made and the dates fixed for the finishing of all the transactions it will be unreasonable to bold that such is the procedure contemplated by cl. (4) of bye-law 155. The period of time, must, in each case, depend upon the circumstances, but where it is made absolutely clear that no payment is going to be made the giving of time is wholly without utility.

Decision (1 = appeal accepted, 0 = rejected): 1

Explanation:
1[ds]The courts below have found that whether an opportunity had been given to the appellant or not, he had no intention of giving his kaplis. Issue No. 5 was specific on this point. That issue was "whether the appellant and his legal advisers voluntarily left the meeting after indicating that the appellant was not going to give the kaplis" and that was the principal question which has been raised throughout the course of these proceedings. Even in the statement of the appellants case he has put in the forefront of the questions for decision the question whether the appellant left the meeting dated June 21, 1949, voluntarily after indicating his unwillingness to submit the kaplis. The finding of both the courts on this question was against the appellant. In our opinion that is fully justified by the evidence on the record. According to the evidence days were fixed by the Association for the settlement of all transactions which had been entered into for that period. According to the chart of Bombay Bullion Exchange settlement had to be made, i.e. the monies had to be paid by 3.30 p. m. on June 21, 1949. The appellant made it clear, however, that he was not going to make the payment in accordance with the requirements of the Valan Day; on the other hand he stated that he will pay after the arbitration award was made. The evidence produced by the respondents makes it abundantly clear that the contention of the appellant was that no action should be taken unless the arbitration which he had asked for had been disposed of and after saying that he went away. This is clear from the Attendance Book of Mr. Trikamdas Dwarkadas solicitor. The respondent Association was therefore justified in taking the action that it did. The minutes of the proceedings of the Clearing House Committee dated June 21, 1949, also show that the appellant and his legal advisers stated that they wanted to go to arbitration and that no action should be taken against them until the arbitrators had given their award. It is stated therein that the appellant admitted that the transactions which his solicitor said were fictions were entered in his books and they had been rajued (tallied) and that he had shown the transaction in his olias" (clearance sheet). All this indicated that the contention raised by the appellant was false and had been raised in order to gain time. In these circumstances it cannot be said that the respondent Committee acted without giving due consideration to the facts of the case or in any precipitate mannerThat clause requires that in the event of default of submission of a kapli the Clearing House Committee shall call the defaulter and demand an explanation and thereafter, if such kapli is not submitted, declare him a defaulter. It was contended that the meaning of this is that first the Clearing House Committee is to demand an explanation and after such an explanation is given, time has to be given for the purpose of enabling the person not giving the kapli to submit his kaplis. In our opinion the interpretation of the learned Chief Justice of the High Court is in consonance with the language used i. e. first the explanation is called and after explanation is given and some decision is arrived at in regard to the validity of the reasons for not giving the kaplis then the person complained against can file the Kaplis but it does not mean that the time to be given has to be one or half an hour or any other specific period9. As we have said above the appellant had made it clear that he was not going to make the payment and had just left after making his submissions. It is not a requirement of the bye-law that the Clearing House Committee should call the person defaulting either by telephone or by letter or by giving him a notice and considering the promptitude with which the payments have to be made and the dates fixed for the finishing of all the transactions it will be unreasonable to bold that such is the procedure contemplated by cl. (4) of bye-law 155. The period of time, must, in each case, depend upon the circumstances, but where it is made absolutely clear that no payment is going to be made the giving of time is wholly without utility.