ALI HUSAIN Vs. MOHAMMAD NAZIR ALI

JUDGEMENT

(1.) This is an appeal by the defendants and arises out of a suit for sale in enforcement of a mortgage, dated 18 March 1922, executed by Ali Husain, Waris Husain and Muhammad Husain for Rs. 1,500 in favour of Syed Nasir Ali Khan Bahadur Zulqadar.

(2.) Ali Husain Khan, who was a treasurer and in the employ of the plaintiff, appears to have misappropriated a sum of Rs. 2,209-12-5 belonging to the plaintiff. The latter dispensed with his services and instituted a criminal complaint against him on the charge of breach of trust. During the pendency of the said complaint the bond in suit was executed for a sum of Rupees 1,500 without interest, the plaintiff having forgone his claim as regards Rs. 709-12-5.

(3.) The suit was contested on the ground that the bond was executed in consideration of an agreement to compound the criminal case and offended against the provisions of Section 23, Contract Act.