MAR APPRAEM CO LTD Vs. NARENDRANATH

JUDGEMENT

(1.) Plaintiff in O.S.No.290 of 1982 on the file of the Sub Court, Trichur is the appellant. Suit was for realisation of amount on the basis of kuri security agreement.

(2.) Plaintiff company started a kuri from its Bangalore branch on 5-6-1979. Ist defendant was a subscriber. Defendants prized the kuri and received the amount and they executed a security agreement on 30-1-1980 in favour of the plaintiff agreeing to pay a sum of Rs.10,300/- being the amount due for the future 103 instalments at the rate of Rs.100/- per month from 5-2-1980 onwards. They also agreed that in case of default of one instalment, the subscription for that month shall be paid with 12% interest on the date of the next instalment. In case of default of the subsequent instalment also, the Foreman shall be entitled to realise the entire future instalments in lump with 12% interest on the whole amount from the date of 1st instalment and that the defendants shall be liable jointly and severally for the amount due. They paid subscription upto 5-10-1980 and committed default from 5-11-1980 onwards. Inspite of demand made for payment of the subscription, they failed to pay the amount. In the circumstances, plaintiff filed the suit for realisation of the entire instalments together with interest.

(3.) Defendants filed a joint written statement stating that they were prepared to discharge the defaulted subscription and the suit filed for the entire future instalments is not maintainable.