LAXMI BANK LIMITED Vs. HARIKISAN

JUDGEMENT

(1.) THIS is a revision by defendants 1 and 3 in civil suit No. 2B of 1946 pending in the Court of the Additional District Judge, Khamgaon, against the order of that Court refusing to stay the suit pending the decision of First Appeal. No. 18 of 1945 pending in the High Court.

(2.) IN order to appreciate correctly the subject-matter of this revision it is necessary to state facts in detail. 'Sitaram Bindraban' a partnership firm at Khamgaon (hereafter called a firm) dealt in cotton, cotton seed etc. and it also carried on business as adtiya and commission agents for purchases and sales of these articles for its constituents and it also financed its constituents in their transactions. Harikisan was one of the constituents of the firm and he did cotton business in the adat of the firm, between 14-8-1942 and 21-3-1943. The business consisted inter alia of purchase of 496 bales of cotton through the pakki adat of the firm which also financed Harikisan. Harikisan agreed to pay interest, adat, brokerage and loss, if any, to the firm.

(3.) ON 6th March 1940, Harikisan instituted Civil Suit No. 2-B of 1946 against Laxmi Bank, Kisanlal, the Sub agent of Laxmi Bank and the firm Sitaram Bindraban at Khamgaon for recovery of Rs. 57,094-7-0, made up of Rs. 45,358 as the price of 250 bales of cotton on 22nd April 1943 or by way of damages and Rs. 11,736 7-0 as interest thereon at 9 per cent, per annum. In this suit Harikisan alleged that as on 17th September 1942 the firm 'Sitaram Bindraban' pressed Harikisan for a substantial repayment he applied for a loan of Rs. 14,000 from the Laxmi Bank on the security of his bales of cotton and it was granted to him under the hypothecation bond dated 17 September 1942.