POONAMCHAND SHANKERLAL & CO. Vs. DIPCHAND SIREMAL

JUDGEMENT

(1.) THIS appeal is from the dismissal of the appellants suit for recovery of 115 bales of cotton, or, alternatively, Rs.39,163 and paise 25 with interest at the rate of paise 50 percent per month against the 5 defendants.

(2.) THE plaintiff firm Poonamchand Sakarlal and Co., is a registered partnership firm carrying on business in cotton seeds etc. at Bombay. Ladhabhai (defendant No.1) and his son Dhanji (defendant No.2) are carrying on business as Adhatiya (commission agent) in the name and style "Dhanji Ladhabahi  at Ujjain. Dhanji was the Karta of the joint Hindu family firm Dhanji Ladhbhai. The plaintiff firm used to purchase and sell cotton and cotton seeds through Dhanji Ladhabhai after getting it ginned and baled at Ujjain. The plaintiffs case was that on being informed by defendant No.2 Dhanji, that he had 279 bags of loose cotton in stock in balance of account and no purchaser was available at Ujjain. (Dhanjis letters dated March 3, and March 23, 1952) the plaintiff directed him to get the cotton bailed and to deliver for that purpose the bags of cotton of M/s Sukhdeo Cotton Press Company, Ujjain. Later on, the plaintiff directed the firm Dhanji Ladhabhai

(3.) THE trial Court held that the plaintiff firm was the owner of the suit goods (115 bales of cotton), that the title in the goods remained vested in the plaintiff firm and did not pass to the firm Dhanji Ladhabahai and that the latter fraudulently and without any right pledged the goods with the firm Deepchand Siremal (defendant 3); but the pledge by the latter firm in favour of the Punjab National Bank was neither fraudulent nor dishonest. The trial Court further held that there was no collusion between the defendant on these findings it held that the plaintiff was not entitled to the price of the goods from defendants Nos. 3, 4 or 5 and in the result it dismissed the suit against them. However, it held defendants No.1 and 2 liable to pay the plaintiff firm Rs.37,925 as price of 115 cotton bales with interest by way of damages at the rate of 6% per annum up to the date of the suit and future interest on that sum at the rate of 4% per annum from the date of the suit (October 16, 1952) till realization.