HEMANT HARISH THAKKAR Vs. BALKRISHNA APPAYYA SHETTY

JUDGEMENT

(1.) THIS is a suit for return of business of hotel known Parkway Restaurant along with premises bearing shop No. 11 and 12, Chhadva Apartments, Chembur, Bombay 400 074, wherein the business is being run by defendant and for damages. Plaintiffs case in the plaint is as below.

(2.) PLAINTIFFS No. 1 to 4 carried on business in partnership in the name and style of Parkway Restaurant. The partnership firm is registered under the Indian Partnership Act and the premises belong to the plaintiffs. Under an agreement dated 10-1-1977 entered into between the plaintiffs and defendant, defendant was allowed to conduct the business as licensee for a period of one year from February 1977 to 31st March, 1978 on the terms and conditions contained in the agreement.

(3.) DEFENDANT failed to pay to the plaintiffs monthly compensation as agreed under the said agreement and the same had fallen in arrears. Defendant only paid a sum of Rs. 20,000/ -. The plaintiffs by their letter dated 4-8-1977 informed the defendants that the said amount would be adjusted against royality by appropriating Rs. 1000/- per month. Defendant was liable to pay Rs. 4500/- per month as per the agreement, but in view of his inability, the plaintiffs agreed to reduce compensation to Rs. 3000/- per month right from day one. However, defendant failed to pay even the reduced compensation and the same fell in arrears. There were disputes between the parties and there was some correspondence exchanged through their respective Advocates. Defendant however continued to make default in payment of monthly compensation. Thereafter there were negotiations between the parties and with a view to putting an end to the controversy, the plaintiffs agreed to sell the entire business of Parkway Restaurant along with goodwill, furniture, fixtures, equipments, utensils including the ownership right of the premises for a consideration of Rs. 3,75,000/ -. The terms and conditions of the agreement of sale were agreed to and Rs. 30,000/- was paid by draft by way of security and a sum of Rs. 20,000/- was paid thereafter. The said sum of Rs. 50,000/- was to be given credit against the total consideration. On execution of the agreement, the defendant paid a sum of Rs. 25,000/ -. There was a loan of Rs. 60,000/- taken from Saraswat Co-operative Bank by the plaintiffs. Defendant agreed to repay that loan to the Bank by instalments. Defendant also agreed to pay balance of Rs. 2,40,000/- by half yearly instalment of Rs. 25,000/- and on payment of balance of Rs. 2,40,000/- with interest thereon, the plaintiffs were to execute the sale deed.