HARIDAS MUNDHRA Vs. INDIAN CABLE CO LTD

JUDGEMENT

(1.) This is an appeal from a decree in a contested suit wherein the learned trial Judge did not allow counsel for the defendant to cross-examine the witness who came to prove the plaintiff's case. The decree, however, was sought to be maintained on diverse grounds by counsel for the respondent and hence it is necessary to examine the facts of the case and what transpired before the learned trial judge on the day when the suit was called on for hearing and decreed.

(2.) The case made in the plaint is as follows: The plaintiff is a manufacturer of cables and other electrical goods. Between March, 1955 and February, 1956 it supplied goods to one F. & C. Osier (India), Ltd., and one S. B. Trading Co. Private, Ltd., and large sums of money became due and payable to the plaintiff from the said companies. On or about September 5, 1956 the defendant, a director of both the said companies, in consideration of the plaintiff allowing and continuing to extend to the said companies the said credit, guaranteed in his personal capacity the payment of such amounts upto Rs. 11,00,000 and Rs. 15,00,000, respectively, that might be due to the plaintiff in its accounts with the said companies. The letters of guarantee, dated September 5, 1956 were annexed to the plaint. On September 26, 1957 F. & C. Osier (India) Ltd. became indebted to the plaintiff in the sum of Rs. 11,37,707/3/3 while S. B. Trading Co. Private, Ltd. became so indebted in the sum of Rs. 15,34,252/15/-. On September 26, 1957, the defendant in consideration of the plaintiff having deferred the filing of suits against the said Companies for the recovery of the amounts due and by way of supplementing the letters of guarantee, dated September 5, 1956, executed a further letter of guarantee whereby he acknowledged his liability to the plaintiff in respect of the dues of the said Companies and guaranteed payment of the same. A copy of the said letter is also annexed to the plaint On May 1, 1958. i.e., the date of the filing of the suit the plaintiff's dues from F. & C. Osler (India), Ltd. was Rs. 11,42,041.25 nP and from S. B. Trading Co. (Private), Ltd. Rs. 15,09,282.09 nP. The claim against the defendant was, however, limited to Rs. 26,00.000 in terms of the letter of guarantee.

(3.) The letters of September 5, 1956 go to show that in case the said two Companies failed to pay their dues the executant H.D. Mundra would remain liable to make payment to the plaintiff upto Rs. 11,00,000 in respect of the dues from F. & C. Osler (India), Ltd. and up to Rs. 15,00,000 in respect of dues from S. B. Trading Co. (Private), Ltd. the letter of September 26, 1957 the defendant purported to confirm the indebtedness of the principal debtors as mentioned above and in his capacity as guarantor to pay diverse sums of money in stated instalments towards reduction of his liability whereupon the plaintiff was to release certain securities deposited by S. B. Trading Co. (Private), Ltd. with the plaintiff to secure the latter's indebtedness.