KANAIYALAL Vs. BHANWARLAL

JUDGEMENT

(1.) This is a Defendants second appeal arising out of a suit for recovery of money on the basis of a 'hundi'.

(2.) The Defendant-Appellants had a cash credit account with; the Plaintiffs firm since Samvat year 1997. On shraven-sudi 3 Samvat 2004 two hundis one for Rs, 4000/- and another for Rs. 1400/- were endorsed by the Defendants firm in favour of the Plaintiffs in respect of their dues up-to-date. The present suit, which was filed on 18-7-1949, was for recovery of the amount of the hundi for Rs. 4000/- plus Rs. 660/- by way of interest thereon at the rate of 1% per mensem.

(3.) The Defendants pleaded that the two hundis were given as collateral securities for the balance due in the cash credit account and were not enforceable except to the extent of the amount actually due on the said account. It was also pleaded that the Defendants had paid Rs. 1000/- in cash and a sum of Rs. 3230/- had been paid by adjustment of a debt to the Defendants from one Pannalal Bherulal, who had sold a truck to the Plaintiffs. It was alleged by the Defendants that the Plaintiffs had deducted the sum of Rs. 3230/- from the price of the truck payable to Pannalal Bherulal whereas the Defendants bad given a discharge to Pannalal Bherulal in respect of the debt which the latter o(sic)ved to them. These two payments were, it was alleged, made in discharge of both hundis and nothing, therefore, remained due to the Plaintiffs in respect thereof. Lastly it was alleged that the amount sued for included compound interest, which could not be allowed under the provisions of the Madhya Bharat Interest Act, 1953. The other pleas raised by the Defendants in their written-statement are no longer material and need not, therefore, be detailed here.