AJODHYA PRASAD BHARGAVA Vs. BHAWANI SHANKER BHARGAVA

JUDGEMENT

(1.) The facts of the case which led to the reference to this Full Bench, briefly stated, are these.

(2.) Ajodhya Prasad Bhargava, defendant appellant, entered into an agreement with a joint Hindu family of which Ram Das was the karta and which owned a business concern known as H. Bevis & Co., for the advance of certain monies to the latter. Under the agreement Ajodhya Prasad Bhargava was to receive interest on the sum advanced and was to have the control and management of the concern, H. Bevis & Co. Ajodhya Prasad Bhargava did not possess sufficient funds to enable him to discharge the obligations under the agreement and he, therefore, approached the plaintiff-respondent Bhawani Shanker Bhargaya, a relation, for investing some money in the business of H. Bevis & Co. The resDondent paid a certain sum either to the appellant, or at his suggestion, to Messrs. H. Bevis & Co. For the recovery of the money remaining due to the respondent he instituted the suit which has given ri?e to this sppeal on the allegation that the money advanced by him was a loan to the appellant. The proprietors of the concern H. Bevis and Co. were also impleaded as pro forma defendants.

(3.) The appellant and Messrs. H. Bevis & Co., contested the suit. H. Bevis & Co.'s plea was that there was no privity of contract between them and the respondent and consequently there was no liability on them to make'any payment to him. The appellant's plea was that he had never borrowed money from the respondent, that the latter was taken as a partner in the investment and that the liability to pay rested with H. Bevis & Co.