JIVRAJ JOHARMAL Vs. LALCHAND SHREEKISON AND CO

JUDGEMENT

(1.) This is an appeal from a decision of Davar, J., which raises a short point of law. The material facts are that a man named Ganeshlal Munda owed a sum of Rs. 27,500 to Messrs Gill & Co., who held as security for the debt 212 bales of cotton belonging to Munda. The appellant, who is the defendant in the suit, was also entitled to a debt due from Munda, and there was another firm, in which the appellant was interested, which was also owed money by Munda.

(2.) In those circumstances an arrangement was made in July 1925, the effect of which was that the appellant took over the liability of Munda to pay Gill & Co.'s debt and also the liability for the debt to the other firm in which the appellant was interested though nothing, I think, turns on that debt; and Gill & Co., agreed that they would hold the 212 bales to the account of the appellant, instead of to the account of Munda. The transaction, the nature of which is not in dispute, is proved by a clerk of Gill & Co., who produced Gill & Co.'s books. Ex. 7, which is a letter written by Gill & Co., to the appellants, explains exactly what had happened. In that letter Gill & Co., say: 212 bales of Ganeshlal Munda are credited to your account as per his and your instructions and Rs. 27,500 have been debited to your account and credited to the account of Ganeshlal Munda.

(3.) The transaction is shown more in detail in Gill & Co.'s books. That letter was written on 23 July 1925, and on the next day Munda wrote to the appellant a letter (Ex. 9) stating that Rs. 41,000 odd, made up of Rs. 27,500 due to Gill & Co., Rs. 10,500 due to the other firm I have mentioned, and the amount due to the appellant "are to be paid to you," that is, the appellant. Then the letter proceeds: As against the said amount our bales 212 which are lying with Gill & Co., are got transferred to your name. When these 212 bales are sold do you please credit the amount of sale proceeds towards this amount.