SOBHA RAM GOPAL RAI Vs. SRI RAM

JUDGEMENT

(1.) In our opinion there is no merit) in this appeal, The suit was brought by a firm of commission agents, doing business at Hapur, against another firm carrying on business in grain, in the Meerut city. This firm is said to consist of three persons, Narain Das, Sri Ram and Ram Nath, who were impleaded as defendants. It is stated that the defendant firm is carried on in the names of Narain Das and Sri Ram.

(2.) The case for the plaintiff firm was that on the 4 of August, 1917, a promissory note was passed in their favour by the defendant firm for a sum of Rs. 4,071-4-0. It was alleged that this amount which carried interest at the rate of 6 per cent. per annum, was to be payable on demand. The plaintiff alleged the demand made and the refusal of the defendant firm to pay. Hence the suit.

(3.) The main defence which was set up by the defendant firm is contained in paragraph 8 of the written statement. While it was not denied that, the promissory note upon which the suit was based was executed, it was alleged that, as a matter of fact, the note had not been execute after a settlement of account had been arrived at between the parties. It was said that certain dealings were going on between the parties relating to grain, and that in view of certain circumstances some loss was apprehended at the time. The allegation was that this note for Rs. 4,071-4-0 was passed to the plaintiff as a sort of security to him and it was further alleged that the agreement between the parties was that the account between them was to be settled at a later date and that money was to be paid or received in accordance with that later settlement. Various other pleas were set out, with which we are really not concerned here.