M M ABBAS BROTHERS Vs. CHETHANDAS FATHECHAND

JUDGEMENT

(1.) Defendants 2 to 4 in O.S. No. 2882 of 1971 in the City Civil Court, Madras, are the appellants. The plaintiff filed the suit for recovery of Rs. 17500 due under three promissory notes, two of which for Rs. 4000 each, were executed on 11-1-1969 and the third for Rs. 3500 on 14-1-1969. The promissory notes carried interest at 24 per cent per annum. They were executed by one Mallik on behalf of the first defendant. One Moshin Bhai has signed the promissory note as a joint executant and according note as a joint executant and according to the plaintiff he was a partner in the second defendant firm and had executed the three promissory notes only as such partner so that the second defendant firm, and the partners thereof, defendants 3 and 4, are jointly and severally liable for the debt.

(2.) The first defendant is a proprietary concern of one Khatija Bee. She filed a written statement stating that the plaintiff had advanced only Rs. 7000 in all, that a sum of Rs. 6000 had been paid back and that only the balance of Rs. 1000 was due on the promissory notes. The rate of interest viz. 24 per cent per annum shown in the promissory notes was said to be usurious and illegal.

(3.) Defendants 2 to 4 filed a common written statement for themselves. They did not admit the signature to be that of Moshin Bhai. He was said to have been ill and for about 2 or 3 years prior to his death, his memory was alleged to have failed. According to them, there was no need for any borrowal and no amount had been brought into the firm's account on the relevant dates. They, therefore, contended that the promissory notes were not supported by consideration. The following issues were framed:--