MILKIMAL PESHWANI Vs. SUDHIR KUMAR PRADHAN

JUDGEMENT

(1.) - Dishonour of a cheque issued by defendant in favour of plaintiff for Rs. 7,000/- bearing date 9. 4. 1971 is the cause of action for the suit for recovery of the amount with interest which being dismissed, plaintiff is appellant in this appeal.

(2.) PLAINTIFF is a manufacturer of bricks. He entered into agreement (Ext. A)with defendant for supply of bricks required by defendant to execute works contract. Case of plaintiff is that in course of supply of bricks, defendant issued the cheque dated 9. 4. 1971 (Ext. 1) towards price of the bricks supplied. Plaintiff deposited the cheque for collection However, the same was dishonoured. Therefore, the suit was filed for realisation of the amount with interest. While submitting issue of cheque and the same being dishonoured, defendant explained that plaintiff was to receive the price of the bricks on periodical settlement of accounts. At times, he was being paid advances for being adjusted at the time of settlement of accounts. In course of such transaction, plaintiff requested for advance of Rs. 7,000/-in March, 1971.

(3.) SINCE defendant had no fund available, he explained the position to plaintiff and stated that he is likely to receive payments from Government departments towards end of March and hence, he would issue a post-dated cheque in favour of plaintiff which can be deposited for collection on getting clearance from the plaintiff for which defendant was to be inform plaintiff before deposit of the cheque for realisation. Defendant could not deposit any amount for which the cheque could not be honoured by the Bank. However, after the date given in the cheque, there was settlement of accounts. Plaintiff supplied bricks worth Rs. 11,760/ -. Adjusting amount of Rs. 5,000/- taken as advance by plaintiff balance amount was paid to plaintiff in respect of which he has acknowledged in Ext. B/1.