INDIAN SPECIE BANK LTD Vs. NAGINDAS HURJIVANDAS NANAVATI

JUDGEMENT

(1.) This is a summary suit filed by the Indian Specie Bank (in liquidation) by its liquidator against Nagindas Hurjivandas Nanavati, who, on the 31st of July 1913, drew a bill of exchange for Rs. 10,000 on Maganlal Motilal payable to the Indian Specie Bank or order at their office in Bombay twelve months after date. On the 10th of August 1913, the bill was accepted by Maganlal Motilal. The bill fell due on the 3rd of August 1914, and, as it was payable at the Bank and the acceptor did not attend to satisfy his obligations on the bill, it became thereby dishonoured. On the 4th of August, notice of dishonour was given to the drawer. The defendant applied for leave to defend the suit and, in support of his application, filed an affidavit on the 23rd of February 1916 He alleged that the amount due by the acceptor had been duly tendered to the plaintiff but it had not been accepted and he claimed to be entitled to bring in Maganlal Motilal as third party. On the 25th of February, an order was made giving the defendant leave to defend and also giving him leave to serve Maganlal Motilal with a Third- party notice. Notice was served and when directions were asked for, an order was made on the 1st of April that the third party Maganlal Motilal be at liberty to defend the suit on condition that there should not be two sets of costs in the event of the costs being made payable by the plaintiff.

(2.) It is not disputed that the acceptor did not pay what was due on his acceptance on the 3rd of August, but, on the 6th of August, his solicitors wrote to the plaintiff: As you are aware the Specie Bank is indebted to our clients in the sum of Rs. 8,000 in respect of two amounts, viz., Rs. 5,500 and Rs. 2,500 borrowed by the Bank on their fixed deposit receipts, dated 24th and 30th September 1913 respectively, and bearing interest at 5 per cent, per annum. The Bank is thus indebted to our client in the total sum of Rs. 8072-8-11 being the amount of the principal and interest up to the 29th November 19i 3, the day on which the petition to wind up the Bank was presented. On your consenting to set off the paid amount of Rs. 8072-8-11 against the said sum of Rs, 10,000 our client is ready and willing to pay off the balance which please note.

(3.) It is also admitted that, on the 20th of August, Messrs. Hiralal and Co., on behalf of Maganlal Motilal, tendered to the plaintiff Rs, 1927-7-;, the balance due on the acceptance after giving credit for the amount due by the Bank on the deposit receipts.