SYNDICATE BANK Vs. JAISHREE INDUSTRIES

JUDGEMENT

(1.) The first defendant in the suit is the appellant herein. The parties are referred to with reference to their rankings in the trial Court hereafter.

(2.) The plaintiff sued defendants for recovery of a sum of Rs. 3,19,000/- being the value of the draft for Rs.2,51,125/- and certain interest thereon. It is stated in the plaint that the plaintiff is a partnership firm. The business of the plaintiff was of manufacturing and selling Super Enamelled Aluminium Winding Wires at Ahmednagar. The plaintiff firm requires aluminium coils for the purpose of its business. The third defendant approached the partners of the plaintiff firm stating that he is a recognised Government auctioneer attached to the Defence Department of Government of India and that third defendant told the said partners that a lot of aluminium coils weighing 24.5 tonnes were available at a floor price of Rs. 10.25 Ps. per Kg. at Bangalore. The third defendant was entitled to brokerage of 10% on entire deal. The third defendant persuaded the plaintiffs partners to believe that aluminium coils were available at Bangalore with M/s. Axle Conductor Industries Ltd. (hereinafter referred to as "Ltd. concern") which according to the third defendant was a Government of India undertaking belonging to its Defence Department. The third defendant also persuaded the partners of the plaintiff firm to agree to purchase the available aluminium coils for a sum of Rs. 2,51,125/-. A draft was purchased by the partners of the firm at Ahmednagar payable to M/s. Axle Conductor Industries Ltd., at Bangalore. The draft was purchased from State Bank of India.

(3.) The two partners of the plaintiff-firm along with third defendant came to Bangalore and they reached Bangalore on 5-10-1979. They had purchased, as already noted, draft for a sum of Rs.2,51,125/- on 3-10-1979. According to the plaintiff, the third defendant told the partners of the firm that an agreement shall have to be executed by them on Rs. 5/-stamp paper in favour of the Defence Director, Conductor Industries Ltd., Government Ordinance Factory Unit, AIR Craft Shed, Bangalore, and accordingly the agreement was prepared and the said agreement along with the bank draft was kept in an envelop bearing the alleged emblem of the said Ltd. concern. The envelop was closed by the third defendant, but instead of returning the said envelop he managed to handover a similar envelop to the partners which was not noticed by the said partners at that time. The partners were further told that the factory was under inspection and therefore the goods would be available only on 8-10-1979. The third defendant and the two partners went outside the Bangalore and returned on 8-10-1979, since 6th and 7th October were holidays being Saturday and Sunday.