ESSAVI INDIA MATCH MFG CO Vs. ESSABHAI

JUDGEMENT

(1.) This is an appeal from an order made under Ch. XIIIA of the Original Side Rules by which Chose, J. directed the appellant to furnish security on or before April 30, 1970 for the sum of Rs. 1,00,000/- only to the satisfaction of the Registrar and in default passed a decree in terms of prayers (a) and (b) of the summons with the qualification that the interim interest and interest on judgment were to be on the principal sum of Rs. 3,50,000/- at 6 per cent per annum.

(2.) The facts of the case may briefly be stated. The respondent Mariam Shaik Essabhoy lent and advanced on diverse dates between November 24, 1967 and December 1, 1967, a total sum of Rs. 3,50,000/- to the defendant No. 1, a partnership firm and the defendant No. 1 agreed to repay the said sum on demand with interest at the rate of 9 per cent per annum. The fact of these loans is not in dispute nor is it in dispute that a number of promissory notes by which the said respondent agreed to repay the loans with interest at 9% per annum were executed. The promissory notes, it may be noted were signed by the manager on behalf of the partnership firm. All these loans were made by cheques.

(3.) The respondent's case is that the appellant in spite of demands failed and neglected to repay the said sum of Rupees 3,50,000/- and on September 25, 1968 executed 7 Hundies in favour of the plaintiff in substitution of the 7 promissory notes which had been executed before. The defendant No. 2 who is the respondent No. 2 before us accepted the said Hundies. Copies of the said Hundies have been annexed to the affidavit used as grounds of the summons.