B K DASTUR Vs. N RAJARAM

JUDGEMENT

(1.) Defendants 2, 3 and 4 are appellants in this appeal.

(2.) The appeal arises out of O.S.No.1184 of 1976 on the file of the Second Assistant Judge, City Civil Court, Madras. The suit was filed on foot of a promissory note, Ex.A1, dt.21st February, 1970, executed by the first defendant (N.Bhala Rao) and one Clubwallah. Both of them were partners of Ramjal Finance Corporation. They had borrowed a sum of Rs.20,000 agreeing to pay interest at 12 per cent per annum, for which amount they had executed the said promissory note. The endorsement was made that the interest had been paid till 31st December, 1972. The later endorsement is dated 12th August, 1973. Subsequently Clubwallah died on 17th February, 1974. Mrs.Clubwallah also died in February, 1975. On 31st January, 1976 an endorsement was made that interest had been paid up to that date. After the death of Clubwallah, the firm Ramjal Finance Corporation was dissolved, and the first defendant is now carrying on the business under a different name. The first defendant is being sued as one of the executants of the promissory note and as a partner of the dissolved firm he is personally liable and the second defendant is liable as the person in whose custody the estate of Clubwallah had vested. Therefore, for the amount due under the promissory note, viz., Rs.20,000 towards principal and Rs.50 towards interest from 1st February, 1976 with future interest, the suit has come to be filed.

(3.) The first defendant submitted to a decree on 26th June, 1976, and prayed for payment of the decree amount in instalments of Rs.750 per month, the first of such instalment was to commence from 27th July, 1976, as per his endorsement made on the plaint. When the suit was taken up for trial, the plaintiff made an endorsement on 28th September, 1977 acknowledging receipt of various instalments paid totalling to Rs.11,250.