MADANGOPAL Vs. NARSINGDAS AND SONS

JUDGEMENT

(1.) This is a defendant's regular first appeal from the judgment of the learned District Judge decreeing the plaintiffs' suit for Rs. 5800 with costs.

(2.) The various events in this case date back to 1941 when the defendant was carrying on business in Calcutta and acting as the Managing Director of a firm by the name of Film Corporation of India Ltd. In the months of May and June 1941, he drew three Hundies in his capacity as Managing Director of the above mentioned firm as per detail below (1) On 31-5-1941 he drew a Hundi for Rs. 1200 in favour of Mt. S. Devi. (2) Again on 31-5-1941 he drew a Hundi for Rs. 1200 in favour of Narsinghdas Agarwal and Sons. (3) On 24-6-1941 he drew a third Hundi for Rs. 2500 in favour of Narsingdas Agarwal and Sons.

(3.) The drawee of these Hundies was Mdangopal Kabra, l Motisil Street, Calcutta. All these Hundies were payable after sixty days and when they were presented to him, he accepted them. Under the acceptance he signed his own name but also added M. D. after his signature. The Hundi in favour of Mt. Devi was endorsed to Narsingdas Agarwal and Sons. Accordingly, since payment due under these Hundies was not made on 1-5-1944, notice was sent to Madangopal Kabra calling upon him to pay the sum of Rs. 4900 due on account of principal and Rs. 800 as interest under the three Hundies and later on, since there was no response to this notice, the suit, out of which this appeal arises, was instituted for the recovery of Rs. 6800 including interest up to date at 6% per annum. The defendant pleaded that the Hundies had indeed been executed by him as Managing Director of the Company but that they had also been accepted by him in the same capacity and not in his personal capacity. He accordingly pleaded that he was not personally liable under these Hundies. He also pleaded that the plaintiff was not entitled to interest. Several other pleas were raised but they are not material for purposes of this appeal. The learned District Judge, who tried this suit, came to the conclusion that the defendant had by accepting the Hundies undertaken a personal liability. Accordingly, he passed a decree for the principal amount due and also awarded interest at 6% per annum by force of Section 80, Negotiable Instruments Act. Interest pendente lite and future interest at 6% per annum was also awarded till the date of payment.