MOHAMMED SIDDIQ Vs. MOHAMED AKBAR

JUDGEMENT

(1.) This is a suit for recovery of Rs. 10718-4-0 alleged to be due to the plaintiff from the defts. 1 to 4 as drawers & acceptors of a hundi dated 13/11/1938, from deft. 5 as indorser of the hundi & from deft. 6 on the footing that he agreed to discharge the liabilities of the deft. 5.

(2.) The plaintiff & Din Mahommad used to carry on business in partnership in the name of East India Export Co. & Asiatic Produce Co. In 1933 they decided to terminate the partnership. The defts. 1 to 4 had drawn & accepted a hundi for Rs. 10,000 payable to the said firm or order 56 days after date. In accord & satisfaction of the pltf.'s share in the partnership, the said Hundi was indorsed by the said firm through Din Mohommed in favour of the plaintiff on 14/11/1933. The partnership was dissolved by mutual consent as on & from 31/12/1933 & on 14/2/1934 a deed of dissolution was executed by the plaintiff & Din Mohommed. The deed provided, inter alia, that Din Mahommad would be entitled to realise all the outstandings of the partnership businesses & would pay all debts & liabilities of the said businesses & indemnify the plaintiff in respect of any claim or action in respect of any of the debts of the said businesses & Din Mohommed would be entitled to use the firm names & to the benefit of all contracts entered into by the two firms. In a schedule to the deed of dissolution, the outstandings, stock-in-trade & the liabilities of the businesses were set out, which did not contain any reference to the plaintiff as a creditor on account of the indorsement of the hundi by the deft. firm.

(3.) On 31/12/1933, the plaintiff made & signed the following endorsement in the books of account of the partnership: