RAGHAVAVEERA SONS Vs. PADMAVATHI

JUDGEMENT

(1.) THIS appeal is against the order of V. Ramaswami J. dismissing Appln. No. 1176 of 1977 which had been filed for setting aside the Master's order dated 72-1977 made in Appln. No. 3826 of 1976 in C. S. 152 of 1976.

(2.) C. S. 152 of 1976 had been filed for recovery of a sum of Rs. 50,000 with subsequent interest at 12 per cent per annum, from the date of the plaint on the basis of the promissory note dated 27-7-1973, alleged to have been executed by S. R. Swami, the second defendant, a partner of the first defendant-firm, for and on behalf of the first defendant-firm of which defendants 3 to 6 also are said to be partners. It was alleged in the plaint that defendants 1 and 3 to 6 (the appellants) are not only well aware of the lending of the amount by the respondent (plaintiff) but were also promising to pay the amount due under the promissory note before they changed their attitude later and chose to make all sorts of false and frivolous allegations. The suit was filed as an under Chapter suit under the provisions of Order VII, Rule 1 of the original Side Rules of this Court.

(3.) THE appellants filed Appln. No. 3826 of 1976 before the Master under Order 37, Rule 3, C. P. C. and under Order VII, Rule 6 (1) of the Original Side Rules of this court, for leave to defend the suit. The allegation made in the third defendant's affidavit filed in support of that application for grant of leave was that though the second defendant 'was in charge of the effective running of the affairs of the firm' and 'looking after the affairs of the firm, he was never empowered either explicitly or impliedly to borrow any amount singly and bind the firm for the unauthorised borrowing'. The further allegations made in that affidavit are-