LAXMICHAND AND BALCHAND Vs. ASHOK LEYLAND LTD

JUDGEMENT

(1.) THIS appeal suit and the cross objection are directed against the judgment and decree dated 20.3.2001 on the file of the III Senior Civil Judge, City Civil Court, Secunderabad, whereby and whereunder, the learned Senior Civil Judge decreed the suit of the plaintiffs for Rs.6,48,610.93 ps. with interest on principal sum of Rs.3,76,365/- at 12% per annum from the date of the suit till the date of decree and thereafter at 6% per annum till the date of realization.

(2.) THE appellants in CCCA No.131 of 2001 are the defendants in OS No.256 of 1991. THE respondents are the plaintiffs in the said suit. THEy filed the suit for recovery of Rs.6,48,610.93 ps. with interest thereon at 18.5% from the date of the suit till the date of realization. THE 1st defendant is a partnership firm and defendants 2 to 4 are partners of 1st defendant firm. Plaintiff No.l is the manufacturer of tippers and whereas the 2nd plaintiff is the dealer of the 1st plaintiff. THE 1st defendant firm purchased two tippers manufactured by the 1st plaintiff through the 2nd plaintiff under IDBI scheme. THE defendants agreed to pay the value of the tippers in six equal instalments. THE 1 st instalment is to be paid on 17.10.1985. THE defendants paid the 1st instalment on 17.3.1988. THE 2nd instalment was to be paid on 17.1.1987, but a part of the 2nd instalment, i.e., Rs.28,735/- was paid on 17.3.1988. THE defendants failed to pay the subsequent instalments on the respective due dates. THE 2nd defendant had signed the hundis as partner and the third defendant signed the cheque dated 17.5.1988 as partner. THE defendants failed to pay the instalments by due dates and thereby, they became liable to pay an amount of Rs.5,77,234.69 ps. as on 16th June 1990. A notice was caused to the defendants to liquidate the liability. Ultimately, a legal notice dated 12.7.1991 was caused to the 1st defendant company demanding the payment of Rs.6,48,610.93 ps. Ex.A7 is the copy of the registered notice and Ex.A8 is the postal acknowledgment. THE defendants failed to liquidate the liability despite the demand through registered notice. Hence, the plaintiffs filed the suit for recovery of Rs.6,48,610.93 ps. THE suit amount includes the instalment amount, overdue interest and penal interest. THE break-up of the suit amount is as follows: Total instalments due [17.1.1987 to 17.10.1989] : Rs.3,76,365-00 Overdue interest on the above amount as on that date : Rs. 1,65,069-22 [17.1.1987 to15.6.1990] Interest on the delay payments Rs.3 5,800-47 [17.1.1987 to 15.6.1990] Total : Rs.5,77,234-69 Interest from 16.6.1990 to 12.7.1991 Rs.71,376-24 [1,11,376.24 less 40,000] ...................... Rs.6,48,610.93

(3.) ON behalf of the plaintiffs, one witness, namely, Sk. Radheshyam was examined as PW1 and 11 documents were marked as Exs.A1 to All. ON behalf of the defendants, one witness, namely, Abdul Muzeed, General Manager of the defendant No.1 firm, was examined as DW1 and two documents were marked as Exs.B1 and B2.