Case Summary: Chinnaya vs. Rammaya

Court: Madras High Court

Full Case Name: Chinnaya V. Rammaya (1882)

Date Decided: 21st October 1987

Judges: Innes J, Kindersley J

Appellant: Venkata Chinnaya

Respondent: Venkata RamayyaGaru

Facts

A lady transferred her property which consisted of certain lands to her daughter (defendant), by a deed of gift. Such deed was registered. One of the terms of the gift deed was that the daughter would pay a sum of Rs. 653/- every year to the lady’s sister (plaintiff). The defendant executed an Iqrarnama or agreement in favor of the plaintiff promising to do the same. The defendant failed to pay the annual amount to the plaintiff. Hence, the plaintiff sued the defendant for the recovery of the same.

Issue

Whether the plaintiff can bring an action against the defendant for the amount promised in a contract where the consideration for such promise has been furnished by the mother of the defendant (plaintiff’s sister)?

Arguments Advanced

Contentions by the plaintiff

  • The consideration for the defendant’s mother to gift the property to the defendant was the defendant’s promise to pay an annuity to the plaintiff. Hence, the plaintiff is entitled to sue the defendant to recover the same.

Contentions by the defendant

  • The plaintiff had not furnished any consideration under the contract. Hence, she is not entitled to sue the defendant for the recovery of the amount promised to her.

Judgment

The Madras High Court held that in this agreement between the defendant and plaintiff the consideration has been furnished on behalf of the plaintiff (sister) by her sister (respondent’s mother). Although the plaintiff was stranger to the consideration since he was a party to the contract he could enforce the promise to the promisor, since, under law, Consideration may be given by the promise or anyone on her behalf – wide section 2(D) of Indian Contract Act,1872.

Thus, consideration furnished by the old lady constitutes sufficient consideration for the plaintiff to sue the defendant on her promise.

Held, the sister was entitled to a decree for payment of the annual sum of money.

 In Indian Law, consideration may be given by the promise or any other person. In India, there is a possibility that consideration for the promise may move not from the promise but a third person, who is not a party to the contract, different from the English Law in which the consideration must move from only the promise.

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