TIRUPAGARI TAYARAMMA Vs. RAMANJANEYA MERCHANTILE CO ELURU

JUDGEMENT

(1.) Appellants 1 and 2 are wife and husband respectively and the third appellant is their son. They are original defendants 1, 2 and 3 respectively.

(2.) The first defendant subscribed to a chit floated by the respondent- plaintiff agreeing to pay the rate of Rs. 3-12 ps . for 800 days commencing form 1st January, 1964 and ending with 11-3-1966. The value of the chit was Rs. 2,500/-. The first defendant paid at the agreed rate upto 31st January 1964, on which date the chit was auctioned amongst the subscribers, and the first defendant was the highest bidder for a sum of Rs. 1,750/-. Out of the balance of Rs. 750/- a sum of Rs. 125/- was deductible towards the commission of plaintiff, while the remaining Rs. 625/- was to be distributed as bonus amongst all the subscribers to the chit. It is common ground that the effect of the first defendant having become the highest bidder at the auction held on 31st January 1964 was that she would get the sum of Rs. 1,750/- immediately, and would also get her share of the bonus distributable amongst the subscribers in respect of the said auction as well as in respect each of the auctions that would follow. It is also common ground that this benefit of immediate receipt of Rs. 1,750/- and the right to receive a share in the bonus distributable on each auction were in lieu of the sum of Rs. 2,500/- being the value of the chit, which would otherwise be payable on 11th March 1966. It is not disputed that the first defendant in fact received the sum of Rs. 1,750/- on 31st January 1964. It is the further common ground that the first defendant continued to be liable to pay at the rate of Rs. 3-12 ps per day till 11-3-1966 as per the original agreement. It appears that on 31st January, 1963 a demand promissory note was signed in favour of the plaintiff, by defendants 1,2 and 3 for the sum of Rs. 2,409/37 ps with interest at 12% p.a. being the aggregate amount, which was still to be payable by the first defendant at the rate of Rs. 3-12 ps per day from the date of the said promissory note till 11-3-1966. That amount was arrived at after deducting from the value of the chit the payment of Rs. 90/- and odd, which the first defendant had admittedly made till then.

(3.) It is an undisputed position that instead of paying daily at the rate of Rupees 3-12 ps. as per the original agreement, the first defendant made the following payments : (i) Rs. 1,084-38 ps. being the aggregate amount for the period from 12-2-1964 to 23-3-1965. It may be mentioned that this payment was not endorsed on the promissory note. (ii) Rs. 5/- was paid on 24-1-1967. This payment was endorsed and signed by all the three defendants on the promissory note. (iii) Rs. 250/- was paid on 13-9-1968, but that payment was not endorsed on the promissory note, though a receipt for the same was passed by the plaintiff. (iv) Rs. 5/- was paid on 23-1-1970. The payment of this amount was endorsed on the promissory note and signed only by the defendants 1 and 2 but not by their son the third defendant. The aggregate of these payments comes to Rs. 1,344-38 ps.