BHADRESH RAMANAND BHATT Vs. FLORAN FINANCE LIMITED

JUDGEMENT

(1.) The appeal is by the original defendant against whom the respondent had filed suit for recovery of money based on contract and dishonoured cheque. The learned Trial Court by the impugned judgment and decree directed the appellant/defendant to pay an amount of Rs.4,22,882.00 (Rupees Four Lakh Twenty-Two Thousand Eight Hundred Eighty-Two Only) with interest at the rate of 12% per annum on principal sum of Rs.4.00 lakh from the date of filing of the suit till its realization.

(2.) The respondent/plaintiff, a limited company carrying on business in real estate entered into partnership with the defendant. While executing deed of retirement from partnership deed dtd. 11/4/1994, one of the condition was to pay an amount of Rs.4,95,000.00 (Rupees Four Lakh Ninety-Five Thousand Only) towards contribution of 99% of the capital of the partnership. Accordingly, a deed of dissolution of partnership was executed on 16/11/1995 came to be executed dissolving the partnership with effect from 1/11/1995. As a capital contributed by the plaintiff in partnership, the defendant agreed to pay an amount of Rs.4,95,000.00 (Rupees Four Lakh Ninety-Five Thousand Only) by issuing cheque of Rs.4.00 lakh dtd. 30/12/1995 towards part payment of the said contribution. On 23/5/1996, the plaintiff deposited the said cheque which was dishonoured. The plaintiff, therefore, filed the suit for recovery of the amount of Rs.4.00 lakh.

(3.) The appellant contested the suit by filing written statement. According to the defendant, the said cheque was a forged cheque and since the plaintiff committed breach of oral agreement, the plaintiff was not entitled to the said amount.