HARI SHANKAR BANKA Vs. CALTEX (INDIA) LTD.

JUDGEMENT

(1.) This is an appeal against an order of Ray, J., disposing of an application for final judgment, under Chap. XIIIA of the Original Side Rules, with an order upon the Defendant to furnish security for Rs. 34,000 within six weeks.

(2.) Facts in so far as material are hereinafter stated in brief. The Plaintiff -Respondent company carry on the business of marketing and distribution of petroleum products and of selling such products through dealers and distributors. One of their distributors was Banwarilal & Brothers at Rourkela in the State of Orissa. The said Banwarilal & Brothers became indebted to the Plaintiff -Respondent for a sum of Rs. 77,562 -74 P. on account of price of petroleum products delivered by the Plaintiff company. The Defendant Appellant is the uncle of Banwarilal, the proprietor of Banwarilal & Brothers. On the Plaintiff -Respondent having had decided to take steps against the Banwarilal & Brothers, the Defendant -Appellant approached the Plaintiff -Respondent company and induced them to desist from taking such steps, by offer of the following guarantee, which was accepted by the Plaintiff -Appellant:

(3.) The Defendant -Appellant filed a written statement and therein alleged, inter alia, as hereinafter stated: