LAWS(BOM)-1942-2-12

RAJA SHIVA PRASAD SINGH Vs. TINCOURI BANERJI

Decided On February 19, 1942
RAJA SHIVA PRASAD SINGH Appellant
V/S
TINCOURI BANERJI Respondents

JUDGEMENT

(1.) THIS is an appeal by the defendant in the suit against a decree of the High Court at Patna affirming (with a trifling amendment dealing with a matter of interest) a decree of the Subordinate Judge, of Dhanbad, and ordering the defendant to pay to the plaintiffs (with certain interest) a sum of Rs. 2,83,550, representing the principal and interest remaining due on a promissory note of February 22, 1934, after the defendant has been credited with certain sums paid on account of the note. The plaintiffs are the representatives of one Kedar, to whom the promissory note was given by the defendant.

(2.) THE circumstances attending the giving of the note may be stated quite shortly. Kedar had been the secretary of the defendant's predecessor in the family raj; and on that predecessor's death he became the secretary of the defendant; but shortly afterwards left his service and became adviser to the defendant's predecessor's widows, whom it will be convenient to refer to as the Ranees. THE Ranees, possibly (as is suggested) under Kedar's advice, proceeded to litigate certain claims against the defendant, and in the result obtained a decree against the defendant to pay to them a sum slightly in excess of Rs. 20 lakhs. Upon the Ranees seeking execution of this decree, negotiations for a compromise ensued, in which Kedar acted as adviser to the Ranees. THE negotiations resulted in a compromise, entered into in February, 1934, under which, in addition to certain sums which the defendant had already paid to the Ranees under the decree, he was to pay them a further sum, in full satisfaction, of Rs. 18 lakhs. Of this eighteen lakhs two lakhs were to be (and apparently in fact were) paid down in cash; the defendant was to pay to certain creditors of the Ranees, of whom Kedar was one, a sum of Rs. 4,40,000, which included a sum of Rs. 2,90,000 payable to Kedar, the balance of Rs. 11,60,000 was to be paid by the defendant to the Ranees by various installments. It was arranged that the Ranees creditors thus to be paid by the defendant should be given promissory notes by the defendant to the amount of their respective debts, and that the Ranees should thereupon be absolved by them from liability for those debts. Accordingly the promissory note the subject-matter of the suit was given by the defendant to Kedar. Kedar died shortly afterwards, and as the defendant, after he had made some payments on account, failed to pay any more, the plaintiffs as his representatives initiated the present suit for the balance unpaid.