RATANLAL Vs. FIRM MANGILAL MATHURALAL OF INDORE

JUDGEMENT

(1.) THIS appeal is by the plaintiff against the decree, dated, 15-1-1958, passed by shri K. G. Deshmukh Civil Judge, Class I, Indore, in Civil Suit No. 10 of 1952, dismissing the plaintiffs suit for recovery of an amount of Rs. 651178/- as principal and Rs. 1418/4/- as interest, as also Rs. 12/6/6 as notice charges, total Rs. 7942/2/6.

(2.) THE appellant's case was that the second respondent, Tilokchand, who is the manager of the joint Hindu family firm of Mangilal Mathuralal, had cash transactions of loans with the plaintiff, which had been entered in the account books and also signed by Tilokchand from time to time. Therefore, the said amount was due on cash loans taken by the second respondent, Tilokchand in his capacity as manager of the joint family firm and therefore, not only he himself was personally liable, but also the joint family firm of 'mangilal Mathuralal' was liable for the suit claim.

(3.) THE respondents' defence was that the transactions had not been entered into by Tilokchand on behalf of the joint family firm. If at all, the transactions were in his individual capacity. Therefore, the joint family firm, in any case, was not liable at all. In their special pleadings, the respondents pleaded that the amounts were not due on cash loans, but on forward transactions in oil seeds, which were not only of a wagering nature and, therefore, prohibited by Sections 30, 30-A and 30b of the Indore Contract Act (No. II of 1915), but also were illegal as being prohibited by the Indore Oil Seeds (Forward Contracts Prohibition) Order, 1943 and, therefore, the consideration being either void or illegal, the plaintiff could not recover any amount on such void or illegal transactions.