INDIA SAREE MUSEUM Vs. P KAPURCHAND

JUDGEMENT

(1.) 1. This is a 1st defendant's appeal directed against the Judgment and Decree dated 31-10-1986 passed in OS.No. 1136/1980 on the file of the II Additional City Civil Judge, Bangalore City. In the course of this Judgment we will refer to the parties by the ranks assigned to them in the trial Court.

(2.) The plaintiff-Kapurchand, a businessman carrying on business at Bangalore paid in all a sum of Rs. 60,000/- to the defendant, a partnership firm, discounting three cheques drawn by the 1st defendant in favour of the 2nd defendant. He obtained on printed discount forms the signatures of the partner of the 2nd defendant firm evidencing payment of cash to the 2nd defendant. When the cheques were presented after the due dates, they came to be dishonoured. Therefore, the suit for recovery of money together with interest at 18 per cent per annum which the 2nd defendant to pay at the time of discounting in case of dishonour of the cheques. The defendants were served with notice of suit and only the 1st defendant entered appearance. The 2nd defendant did not appear and therefore he was placed ex parte.

(3.) The 1st defendant filed the written statement admitting the fact of having drawn the cheques in certain circumstances in favour of the 2nd defendant. He also took the stand in his written statement that the plaintiff was not a holder in due course and he ran the risk of negotiating the post-dated cheques and therefore on account of non-performance of certain obligations undertaken by the 2nd defendant at the time of drawing the cheques in his favour, he stopped payment on those cheques and therefore the cheques were dishonoured and as such he was not liable to make good any amount to the plaintiff as he had received no consideration for the cheques. On such pleadings, the Court framed as many as 8 issues which are as follows :