Joinder of parties liable on same contract
Full Text
The plaintiff may, at his option, join as parties to the same suit all or any of the persons severally, or jointly and severally, liable on any one contract, including parties to bills of exchange, hundis and promissory notes.
Plain English Summary
Grants the plaintiff an absolute option to sue all or any of the persons jointly and severally liable on a single contract, promissory note, bill of exchange, or commercial instrument in one action.
Key Legal Elements
- Plaintiff's Discretion: Plaintiff cannot be compelled to join all co-promisors; he may choose to sue any or all of them.
- Applicability to Negotiable Instruments: Expressly covers drawers, acceptors, endorsers, and makers of negotiable instruments.
- Interplay with Section 43 Contract Act: Joint promisors are jointly and severally liable unless the agreement specifies otherwise.
Practical Note
Commercial Litigation Guidance: 1. Guarantor & Principal Debtor: Under Rule 6 read with Section 128 of the Indian Contract Act, a creditor can sue the guarantor directly without joining or exhausting remedies against the principal debtor (Bank of Bihar v. Damodar Prasad, AIR 1969 SC 297). 2. Suit on Cheque / Negotiable Instruments: Payee can join drawer and all endorsers in a single summary suit (Order XXXVII) or ordinary money suit. 3. Defense Limitation: A co-obligor cannot seek dismissal of the suit on the ground that other joint debtors have not been impleaded.
हिंदी पाठ
वादी अपने विकल्प पर, किसी एक ही संविदा के आधार पर पृथक्तः अथवा संयुक्ततः और पृथक्तः दायी सभी या किन्हीं व्यक्तियों को, जिनके अंतर्गत विनिमय-पत्रों, हुंडियों और वचन-पत्रों के पक्षकार भी हैं, उसी वाद में पक्षकारों के रूप में संयोजित कर सकेगा।