GOODWILL TRADERS Vs. SHOWKAT HUSSAIN

JUDGEMENT

(1.) The petitioner is a business concern, engaged in wholesale business as general merchants at Solina, Srinagar. The defendants run a retail shop under the name and style of M/s S. Sofi, Store, Kokerbazar, Srinagar. The petitioner com menced a suit under order XXXVII CPC against the respondents for recovery of an amount of Rs. 2,20,000/- from the respondents. The petitioner's case was that he has business relationship with respondents, has been supplying goods to the respondents on credit and that the amount paid by the respondents from time to time is duly credited to their account, in the Ledger maintained by the petitioner and the amount due/recoverable from the respondents worked out after regular intervals. It was further pleaded that the respondents on account of payments due issued Cheques in favour of the petitioner; that the cheques bounced and the Bank expressed inability to make payment because of insufficient funds, constraining the petitioner to file the suit under Order XXXVIICPC.

(2.) The respondents entered appearance and made an application on 14th December, 2009 seeking leave to defend the suit. The stand taken was that the cheque amount was paid in cash by the respondents, though the petitioner did not return the cheques. The respondents insisted that nothing was outstanding against them as regards the transaction in question. On 8th June 2011, the respondents filed an application seeking leave to place on file cheques previously issued by respon dents in favour of the petitioner but later returned after the cash payment was made by the respondents to the petitioner.

(3.) The application for grant of leave to defend the suit was opposed by petitioner on the ground that the defence set up was without any substance and no payment was made by the respondents. The petitioner insisted that if any payment were made, same would have been reflected in the Ledger of the business concern and respondents would not allow the petitioner to retain the cheques after the payment was made.