HARISH CHANDER Vs. GANGA SINGH AND SONS

JUDGEMENT

(1.) PRIMARILY three propositions that have been canvassed and thus fall for determination in this regular first appeal are (1) whether the suit of the plaintiff was based on the original consideration of the debt amount advanced to the defendant-respondent and thus the non-presentment of the cheques for payment had no effect whatsoever on the latter's liability towards the plaintiff creditor: (2)whether, in the alternative, even if it is assumed that the present suit was based on the said cheques, the non-presentment thereof in terms of Section 64 of the negotiable Instruments Act, 1881 (Act 26 of 1881), hereinafter referred to as the act, would discharge the drawer thereof of his liability thereon to the holder and (3) whether it is open to the Court of law to allow lesser rate of interest on the principal amount than the one agreed upon between the parties?

(2.) THE relevant facts, which have a bearing on the propositions set out above, are that the plaintiff, who is a licensed money-lender, from time to time advanced in cash to the defendants a total sum of Rs. 22,100/- as loan payable on demand: that against, an amount of Rs. 7,700/- out of the above mentioned loan amount the defendants issued in favour of the plaintiff cheques Exhibits P-1 to P-6 and pronote Exhibits A. C. and E against a further sum of Rs. 12,000/- wherein the rate of interest was fixed at 12 per cent. per annum: and that when the defendant failed to return the loan the plaintiff issued notice for the payment thereof to which he got no reply from them and that led to the filing of the present suit for recovery of a sum of Rs. 26,700/- : Rs. 22,100/- out of that being the principal and Rs. 4,600/- interest thereon at the rate of twelve per cent per annum.

(3.) THE defendants resisted the suit, inter alia. with the plea that the cheques and pronotes in question had not been presented, as required under Section 64 of the act and so they stood absolved of the liability under them.