AGANALL TRADERS LIMITED Vs. SHYAM AHUJA

JUDGEMENT

(1.) The plaintiff M/s. Agnall Oil Traders Limited is incorporated under the Companies Act,. 1956. The plaintiff is an authorised dealer for the sale of Maruti vehicles and its spare parts. The defendant is also engaged in the business of trading and sale of automobile parts and allied products. The defendant had purchased goods from the plaintiff. Admittedly, all the purchases were made on credit by the defendant. It is alleged that as per the market usage and custom the defendant had agreed to pay interest at the rate of 22 per cent perannum on the unpaid purchase.The defendant issued cheques against the purchases but most of these cheques were dishonoured. The plaintiff has placed about 26 cheques on record which were given to him by the defendant and on presentation, all these cheques were dishonoured. The defendant had reconciled his account of purchases made and confirmed the debit balance. It is further alleged in the plaint that the defendant vide letter dated 8.8.1992 regretted for his failure to keep his commitment regarding the repayments on account of his financial condition.

(2.) . The defendant had issued cheques to the plaintiff to clear entire outstanding amount. The defendant had also signed a promisory note on 8.8.1992. In the said promisory note, the defendant agreed to pay Rs. 17,10,471.43 with interest at the rate of 22%.

(3.) . It is alleged in the plaint that on 18.8.1992, the plaintiff and the defendant had arrived at an agreement by which the liability was admitted by the defendant and he gave post dated cheques to the plaintiff.