GEORGE Vs. KUNJACHAN

JUDGEMENT

(1.) This second appeal arises from the judgment and decree of learned Munsiff, Chalakkudy in O.S. No. 418 of 2004 as confirmed by the learned Sub Judge, Irinjalakkuda in A.S. No. 196 of 2006.

(2.) O.S. No. 418 of 2004 is a suit filed by the first respondent for recovery of money. Case is that he had joined in a kurry started by M/s. Pullokkaran Chitty Company and was paying the subscription through the appellant who was its collection agent. He paid Rs. 26,567/- in installments to the appellant and necessary entry was made in the passbook given to the first respondent but, later enquiry revealed that appellant misappropriated the said amount without remitting the same to the chitty company. Appellant agreed to repay the amount and executed a demand promissory note (for short, "the DPN") on 17.04.2003 and a cheque dated 17.06.2003 for Rs. 5,000/-. That cheque was dishonoured. First respondent wanted to recover Rs. 26,567/- with interest.

(3.) Appellant while admitting that he was the collection agent of M/s. Pullokkaran Chitty Company and that he collected the amount from the first respondent, claimed that he remitted it with the chitty company. He denied that he misappropriated the amount or executed any DPN as claimed by the first respondent. The Chitty company was closed by its foreman. First respondent asked the appellant for a loan of Rs. 5,000/-. As he was short of funds, he gave cheque of Rs. 5,000/- for getting loan from somebody else.