FIRM RATTAN LAL AND CO. Vs. DEV RAJ

JUDGEMENT

(1.) This judgment will dispose of R.F.A. No. 1777 of 1977 and R.F.A. No. 1285 of 1986 as similar questions of law- and facts are involved in both these appeals.

(2.) Defendants No. 1, and 5 feeling aggrieved by the judgment and decree dated 18.10.1977 have file this appeal.

(3.) Briefly put, plaintiff filed a suit for recovery of Rs. 54,034.75 i.e. 46045.75 as principal and Rs. 7989/- as interest, for the -price of 100 bales of cotton delivered by Hari Ram sole proprietor of. M/s Radha Ram Hari Ram, defendant No. 1, to the resent appellants. The plaintiff filed suit on the basis of a assignment dated 7.1.1966 made by Hari Ram, defendant No. 10, in his favour in respect of this transaction. As per averment in the plaint, defendant No. 1 M/s Firm Rattan Lal & Co. is carrying on business at Kanpur and defendant Nos. 2 to 5 are its partners. Similarly, defendant No. 6 is a firm whereas defendant Nos. 7 and 8 are its partners. Defendant No. 9, Lakshmi Rattan Cotton Mills Co., is a public limited company. It is further the case of the plaintiff that defendant No. 10 sold 100 bales of cotton to defendant No. 1 sent through a transport company on 26.1.1963 from Tarn Taran to Kanpur. The consignee of this consignment was defendant No. 1. Being a consignee, he sold this consignment to defendant No. 9, Lakshmi Rattan Cotton Mills Co., through M/s Jagdish Cotton Trading Co., defendant No. 6. The net sale proceeds of this consignment was of Rs. 46551.36 after deducting freight and octroi charges etc. Further allowing defendant Nos. 1 and 6 commission of Rs. 475.61 at the rate of 1% defendant No. 10 became entitled to Rs. 46045.75 from defendant Nos. 1 and 6 and in the alternative from defendant No. 9 in case the company has not made payment to defendant Nos. I and 6. It has been further averred that with a view to get the payment of the cotton bales sold, defendant-No. 10 sent representative to Kanpur but no amount was received as each of the defendant passed on the burden of payment to the other defendant/defendants. It is on 7.1.1966 that defendant No.10 assigned his rights, title or interest on account of outstanding amount due towards defendant Nos. 1, 6 and 9 or against any of them to the plaintiff for a valuable consideration of Rs. 32,000/-. This is how the plaintiff filed the present suit for recovery of the amount due and further claimed interest at the rate of 6% per annum on such amount till its realisation. The plaintiff in addition to this also claimed relief against defendant No. 10 in case the Court comes to the conclusion that the amount assigned has, in fact, been utilised by defendant No. 10.