Engineering Supplies Ltd. vs Dhandhania And Co. on 24 June, 1930
In the first place the expression "cause of action" has always been interpreted in this Court in the light of Lord Esher's dictum in Read v. Brown (1888) 22 Q.B.D. 128 and as Sir George Rankin observed in Engineering Supplies Ltd. v. Dhandbania & Co , this is the only definition that will work if it is to be applied to cases of all kinds. It does not seem to us that the learned Judges of the Rangoon High 'Court were right in saying that the cause of action connotes different things in different parts of the Code. We cannot also agree with the view that the cause of action in suits for money due on a contract of insurance is the failure on the part of the insurance company to pay the money. The refusal of the insurer to pay the money may be a part of the cause of action, but the death of the assured is also a material part which gives occasion for and forms the foundation of the suit. The other matter upon which stress was laid by the Rangoon High Court is that as in Expln. 3 to Section 17 of the Code of 1882 "cause of action" in relation to suits on contract was exhaustively defined, the same meaning should be attached to it in Section 20(c) of the present Code of Civil Procedure even though the explanation occurring in the old Code has now been omitted. This, as we have already said, is the second part of Mr. Bose's contention and it is necessary to examine this proposition carefully. Section 17, Civil P.C. of 1882 as it originally stood, referred to the place; where the cause of action arose. It was not clear whether it meant the entire cause of action or a part of it. Act 7 of 1888 added an explanation, namely Expln, 3 to the section which ran as follows: