MURUHAVEL FINANCE Vs. MUTHUSAMI

JUDGEMENT

(1.) A common Judgment is being pronounced in the above First Appeal, since the facts in both the suits namely O.S. No.48 of 2007 and O.S.No.50 of 2007 are identical, in so far as the plaintiff is concerned and the cause of action for filing the suit. However, I shall be dealing with the pleadings in both the suits separately. The parties are referred to in the same rank as before the Trial Court.

(2.) The plaintiff claims to be a registered firm doing finance business at Erode. The firm is a registered firm. The first defendant which was a proprietary concern doing business in Textiles under the name and style of "Lakshmi Textiles" had issued cheques favouring the 2 nd and 3 rd defendants, which were also firms and close business associates of the 1 st defendant. The defendants 2 and 3 would discount these cheques on commission payment with the plaintiff on the assurance that the same would be honoured by the 1 st defendant on presentation.

(3.) The 1st defendant had issued the following cheques which were discounted by the defendants 2 and 3 are detailed below: