LAKSHMI NARAYAN SUKHANI Vs. KAMAKHYA NARAYAN SINGH

JUDGEMENT

(1.) The question that arises in this case is whether the learned Subordinate Judge of Hazaribagh was right in asking the petitioners to pay court-fee on the amount of Rs. 70,000 which the petitioners claim as a set-off in the written statement.

(2.) The opposite party instituted Money Suit No. 13 of 1950 in the Court of the Subordinate Judge claiming a sum of Rs. 1,00,000 as principal and a sum of RS. 15,000.00 as interest from the petitioners, alleging that there was a breach of contract and they were, therefore, entitled to the amount claimed by way of damages for the breach of the contract. The case of the opposite party was that they had advanced a sum of Rs. 6,50,000 to the petitioners for the purpose of floating a company on certain terms and conditions. The contract was not performed as the company was not floated and no action was taken to implement the terms and conditions on which the company was to be floated. The opposite party admitted that a sum of Rs. 5,50,000 was returned by the petitioners. The suit was, therefore, instituted for the balance of Rs. 1,00,000 which was still in deposit with the petitioners and for the interest due thereon.

(3.) The defence of the petitioners was that the opposite party was not entitled to refund of any money. The petitioners said that they had committed no breach of contract but there was a breach of contract on the part of the opposite party and, on account of this breach, the petitioners had suffered damages to the extent of Rs. 70,000. The petitioners also claimed that the opposite party had maliciously lodged a false criminal case against the petitioners and, on account of these criminal proceedings, the petitioners claim damages to the extent of Rs. 1,00,000.