BHARATHMATHA COFFEE WORKS Vs. JAGANNATH S/O HANUMANTHARAJ

JUDGEMENT

(1.) The present appellant was the plaintiff in OS No.84/1995 in the Court of the Civil Judge (Sr.Dn.), C.J.M., Chikmagaluru (henceforth referred to as 'the trial Court', for brevity) filed against the present respondent for recovery of a sum of Rs.75,658.10 with interest thereupon.

(2.) The summary of the case of the plaintiff in the Trial Court was that he has been the wholesale dealer in coffee seeds and chicory and the defendant was a retail dealer. The defendant was purchasing coffee seeds and chicory from the plaintiff on credit basis and also on cash. Now and then, the defendant was making payment towards the purchase made by him. The defendant was purchasing the goods from the plaintiff since 1990. In this regard the plaintiff has been maintaining books of accounts regularly. The relevant business period between the plaintiff and the defendant was between 13.11.1990 and 31.05.1995. The defendant had agreed to pay interest at the rate of 24% p.a., between 13.11.1990 and 06.10.199 Thereafter, he agreed to pay interest at the rate of 27% per annum. The defendant signed the credit bills, even otherwise also as per the mercantile usage and customs, plaintiff was entitled to recover interest from the defendant. The plaintiff has further stated that the defendant withheld the payment towards it, thus depriving it from investing the same money in its business and earning profit. On 25.07.1994, the defendant confirmed the balance towards the plaintiff at Rs.60,851.10. The same was acknowledged by the defendant. He also executed an on demand promissory note in favour of the plaintiff for the said amount, agreeing to pay the amount of Rs.60,851.10 together with interest at the rate of 27% per annum thereupon. Thus, according to the plaintiff, as on 31.05.1995, the defendant was due to it a sum of Rs.75,658.10. Since, the defendant did not pay the said amount, the plaintiff was constrained to file the suit for recovery of the said amount with interest at the rate of 27% per annum thereupon.

(3.) In response to the summons, defendant appeared through his counsel and filed his written statement wherein he admitted of his business transaction with the plaintiff. He has admitted that he was purchasing the coffee seeds and chicory from the plaintiff's establishment on credit for which the plaintiff used to raise invoices, credit bills as and when the transaction was made. However, the defendant, did not admit the correctness of the accounts books produced by the plaintiff. He has stated that he is not aware whether he has signed any account on 29.07.1991 and also on 24.01.1992. He has also denied that he had agreed to pay the interest at the rate of 24% per annum for a particular period and at 27% per annum from 07.10.1992. He has stated that he was not aware whether he has signed the credit bills containing the stipulation to pay interest on credit. He has further stated incase, if the plaintiff gives turn over margin of 30%, the defendant is liable to pay interest as per the merchantile under usual custom prevailing among the members. No interest was payable as continuous and regular transaction was made with the wholesaler. He has also stated that he was not aware that the plaintiff was paying interest to the Banker on the financial facilities obtained by him. He has stated that allegation regarding he verifying the books of accounts, acknowledging it and also executing the demand promissory note was not fully correct. He has stated that he was not aware whether he has signed the books of accounts and confirmed the balance.