KERALA STATE FINANCIAL ENTERPRISES LIMITED Vs. JACOB ALEXANDER

JUDGEMENT

(1.) Leave granted.

(2.) This appeal by the defendant No. 2. is directed against the full Bench Judgment of Kerala High Court in A.S. No. 235 of 1987 arising out of O.s. No. 120 OF 1983.

(3.) The plaintiff filed the suit for a direction to the State of Kerala as well as Kerala State Finacial Enterprises Limited, Trichur to pay the amount due as the plaintiffs' share from the unpaid auction discount with interest. The plaintiff's case in nutshell is that the defendant No. 2. was conducting a Kuri which started on 17-3-1972 and terminated on 17-7-1980. The Kuri had 200 tickets each with four divisions, viz., A.B.C and D and the total amount of a ticket was Rs. 50.000/- The subscription for a ticket per month was Rs. 500/- In all (Rs.200 for A Division, Rs. 150/- for B Division, Rs. 100/- for C Division and Rs. 50/- for D Division ) there were 100 such instalments and 1018 subscribers. On each instalment two tickets were prized, one by lot and the other by auction. In case of prize by lot Rs. 5,000/- will be deducted as fixed discount and Rupees 45,000/- will be paid to the prized subscriber Out of the fixed discount of Rupees 5,000/-, Rs. 2,500/- would go as commission for the foreman and balance Rs. 2,500/- would be divided among the subscribers in proportion to their share. In case of action., the subscriber who bids for the maximum reduced amount would be prized and he would get an amount of Rs. 45,000/- less the auction deduction. the auction discount of all the divisions will be pooled together and would be divided among the subscribers. This auction dicount is paid to those subscribers who pay the subscription promptly. A prized subcriber loses the share of the discout on default of payment of even one instalment. A non-prized subscriber would lose the share of auction discout if he defaults three of more instalments consecutively. The conduct of Kuries is governed by the Cochin Kuires Act VII of 1107 (hereinafter referred to as the Act). The plaintiff was subscriber to Division A and Division B of the ticket and paid all the subscriptions promptly and regularly . But even after the termination of kuri plaintiff was not paid the proportionate share of unpaid auction discount, he filed the suit. Since the entire information remained with the foreman , the plaintiff expected to get Rs. 4,000/- and on the said amount he also calculated interest @ 12% per annum and filed the suit.