VISHAL ASSOCIATES Vs. K.L.F. OIL INDUSTRIES

JUDGEMENT

(1.) The appellants were defendants in O. S. No. 389/2005 on the file of the Civil Judge (Sr. Dn.), Belgaum. They are challenging the judgment and decree passed by the said Court in a suit filed by the respondent/plaintiff for recovery of Rs. 41,94,083/- with interest at 10% per annum against the defendants 1 to 3 and against the decree passed against the 4th defendant for a sum of Rs. 1,83,087/- with interest at 10% per annum. We have heard the learned counsel for the parties.

(2.) The facts leading to this case are as hereunder:--

(3.) The defendants contested the suit. According to them, the suit filed by the plaintiff was not maintainable and the same was barred by principles of Order II, Rule 2, CPC. It is contended by the defendants that the transactions between the plaintiff and defendants 1 to 3 are different from the transactions between plaintiff and the 4th defendant and the plaintiff cannot maintain a single suit by clubbing the cause of action of a commercial transaction pertaining to the dealings of a partnership firm and also that of a proprietorship concern namely 4th defendant who is in no way concerned with defendants 1 to 3. It was also contended that they are not liable to pay the amount as demanded by the plaintiff. It is also contended that there is no privity of contract to pay the interest either at the rate of 16% per annum or at any rate. In the circumstances, they requested the trial Court to dismiss the suit.