INDORE WIRE CO LTD Vs. KALYANDAS

JUDGEMENT

(1.) This is a plaintiff's first appeal u/ s. 96, CPC, directed against the trial Court's judgment and decree dated 9-3-1971, passed by the 2nd Addl. District Judge, Indore (decree subsequently modified on 11-3-1971), in Civil Suit No. 18A of 1967, dismissing the suit, but later on decreeing it to the extent of Rs. 5000/- only.

(2.) Plaintiff filed a suit for recovery of Rs. 10,000/- paid as earnest money, claiming interest at 6% per annum, against the defendant-respondents alleging breach of contract against them.

(3.) Plaintiffs case was that the defendant-respondent M/s. Jasrup Baijnath entered into a contract with the appellant on 31st May 1962, agreeing to sell lease hold rights in the property, as detailed in para. 3 of the plaint, with structures and construction standing thereon, for Rs.1,15,000/-. The agreement was signed by defendant No. 1, Kalyandas Baheti, as the manager and Karta of the joint Hindu family, carrying on business in the name of M/s. Jasrup Baijnath. Plaintiff had paid Rs.10,000/- as earnest money at the time of agreement to defendant No. 1, who had represented and assured the plaintiff that the property to be sold was free from all encumbrances and that he as "Karta" had power to sell the same. It was also held out that the firm consisted of himself and his brother, Daulal and their sons, as coparceners and that he was the Manager and Karta of the family firm.