KARAMCHAND THAPAR Vs. CENTRAL BANK OF INDIA NAGPUR

JUDGEMENT

(1.) THIS Appeal has been preferred by the original defendant No. 16/appellant herein against the original plaintiff/respondent No. 1 herein - Central Bank of India and other original defendants Nos. 2 to 15/respondent Nos. 2 to 15 herein, and thereby challenged the judgment and deciee dated 11th July, 1988, passed in the Special Civil Suit No. 236 of 1975 between the parties, in respect of the finding, as well as, the decree against the said defendant-appellant herein.

(2.) THE respondent No. 1-original plaintiff had filed the Suit basically against the respondent No. 2 and respondent Nos. 3 to 15 as Partners of the respondent No. 1 for the amount of Rs. 2,20,320. 81 on the basic agreement/transaction called credit facilities including Clean Demand Endorsed bills Limit and a Usance Bill Limit. From time to time, parties used to execute necessary documents like pronote. The said Bill Limit was for Rs. 2,00,000/- and rs. 4,00,000/- which was increased from time to time. On 27-9-1972, a consolidated pronote was executed to the tune of Rs. 84,00,000/ -. The respondent no. 1 alleged that it was a practice in the Bill Discounting Limits that the respondent No. 2 used to prepare the hundies in the name of a drawee and submit it to the respondent-plaintiff for discounting purposes. The respondent No. 1 used to purchase the hundies and make the payment to the respondent No. 2 immediately on its submission. Thereafter, within the time limit, the drawee of the hundi, on acceptance of the hundi, used to make payment of the bills connected with the hundi to the respondent No. 1. This practice was continued since 1959 till the Coal Mines (Taking Over Of Management) Act, 1973, came into force. The Custodian was appointed. The appointment date for the Coal mines (Nationalization) Act, 1973, is 1st May, 1973. Based on that, the custodian was inter-charged of the assets of the Mine owners from 31st January, 1973 to 30th April, 1973.

(3.) THE respondent No. 2 was doing a business of coal mining and owned ballarpur, Shasti and Ghugus Coal Mines. As per the practice, after despatch of the coal to the purchaser party, the respondent No. 2 used to prepare the bill of the goods sold and used to submit it for discount, along with hundies to the respondent No. 1-Bank. The respondent No. 1-Bank immediately on submission used to credit the amounts of bill to the account of the respondent No. 1 and on acceptance of the drawee of the hundi, the amount was to be recovered from the drawee. The plaintiff had restricted the Suit for the claim of Bills Discounting facility against the original defendant Nos. 1 to 16.