BUDDULAL GOERLAL MAHAJAN Vs. SHRIKISAN CHANDMAL

JUDGEMENT

(1.) This is an appeal by the defendant a constituent at Dhar, from a decree against him for the claim of the plaintiff a registered broker (or dalal) doing business at Indore, for compensation for the losses incurred by him on account of the defendant during forward transactions relating to 100 shares of the Hukumchand Mills, 20 shares of the Malwa Mills and 200 bales of cotton, on account of extension (badlai) from the Maha Sudi 15, Samvat 2003 (6th February, 1947) to Phagun Sudi 15, Samvat 2003, and again to Chait Sudi 15, Samvat 2004 (4th April, 1947). While there is no controversy either about the liability or about the exact amount, in regard to the claim in respect of the losses in the transactions in cotton and the 20 Malwa shares, there are serious disputes in regard to the extension of the forward transaction on the 100 shares of the Hukumchand Mills.

(2.) IN regard to interest, there are two questions here; first, raised by the defendant in the main appeal (No. 29 of 1954), whether it should at all have been decreed for the period before the suit; and second, by the plaintiff, in a cross appeal (No. 33 of 1954), that future interest should have been awarded from the date of the suit and not merely, as now, from the date of the decree.

(3.) THE facts of the case are the following : During the relevant period, the plaintiff firm consisted of two brothers Shrikishan and Chandmal, the third brother having gone out after a partition. They do joint business, are registered brokers at Indore and members of two associations which generally regulate the forward dealings in shares and in cotton respectively. The defendant Buddulal resides at Dhar, doing business in the name of Chironjilal Gorelal. It is common ground that he had been dealing in forward contracts on shares and on different commodities as well, for sometime before the beginning of 1947. It is also admitted that forward agreements for the delivery of 20 shares of the Malwa Mills, and 200 bales of cotton, were in force between the parties and had been extended month after month, from Maha Sudi 15, by two months. The losses incurred in that regard, as well as on 100 Hukumchand shares, and incidental expenses upto the Maha waida (Maha Sudi 15 : 6th February 1947) had been paid off. Both parties admit that the last were to be delivered by the plaintiffs to the defendant, on several monthly waidas before Maha Sudi 15, 2003, and the waidas had been extended month after month.