SADASHIV PANDURANG CHAVAN Vs. RAMAKANT MAHADEO MANERKAR

JUDGEMENT

(1.) Appeal is admitted on following substantial question of law:

(2.) With consent of the learned counsel for the parties, matter is taken up for final hearing immediately. Perused the judgments of both the Courts below as well as the relevant oral and documentary evidence.

(3.) To state in brief, it is the case of the plaintiff/appellant that the defendant/respondent was already carrying on business as proprietor in the name and style of 'Manerkar Traders' at C.S.No.1259, "C" Ward, Laxmipuri, Kolhapur. There were cordial relations between the plaintiff and the defendant. In January, 1996, the defendant offered to admit the plaintiff as a partner in his business and this offer was accepted. As per the agreement, plaintiff paid some amounts to the defendant towards the capital in the business. Plaintiff was admitted to partnership firm with half share in the same. Remaining half share was to continue with the defendant. Plaintiff also started looking after the affairs of the business in the capacity of the partner. His name was also recorded as partner in different registers including records maintained by Agriculture Produce Market Committee (In short 'A.P.M.C.'). According to the plaintiff, the defendant had assured him to get the partnership firm registered. However, shortly differences and disputes occurred between them on account of business debts and liabilities. In view of the disputes, it was agreed that the plaintiff would quit the partnership firm and receive an amount of Rs.1,55,000/- towards his share in the business. Accordingly, agreement or Memorandum of Understanding (MOU) was entered into between the plaintiff and the defendant in presence of the witnesses on 7th February, 1997. Defendant issued a post-dated cheque bearing number 025275 dated 31-12-1997 against his account with Ravivar Peth Co-operative Bank, Kolhapur. According to the plaintiff, the cheque was presented to the bank for encashment and on 4-2-1998 cheque was returned to the plaintiff with endorsement "Drawer stopped the payment". In view of the cheque being dishonoured, plaintiff filed Special Civil Suit No. 257/98 for recovery of l,64,800/-including principal amount of Rs. 1,55,000/- as per the cheque and the interest thereon.