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1980 Supreme(SC) 127

SUPREME COURT OF INDIA
S. MURTAZA FAZAL ALI AND A.D. KOSHAL, JJ.
Khushalbhai Mahijibhai Patel, Appellant
Versus
A. firm of Mohamadhussain Rahimbux, Respondent.
Civil Appeal No. 1376 of 1970, D/- 11-3-1980.

Advocates:
A.G.Ratnaparkhi, D.V.PATEL, M.V.GOSWAMY, T.U.Mehta, W.S.Barlingay

Headnote:

Constitution of India, 1950 - Article 133 (1)(a) - Purchase of Goods - Cheques Drawn - Dishonoured - Recovery of Price - Suit was filed, in court for recovery of Rs. 38,718/- from defendant firm on account of price of 225 bags of tobacco - Case set out in plaint was that tobacco in question had been purchased by defendant firm, that same was despatched to defendant firm by train from Anklav railway station on which date a bill for Rs. 30,523/- covering price of goods and incidental expenses was sent to defendant firm, that goods were received by defendant firm who failed to pay for same, that ultimately defendant firm gave to plaintiff four cheques drawn on a banking company of Santa but that all of them were dishonoured on presentation - In addition to said amount of Rs. 30,523/-, plaintiff claimed Rs. 8,195 on account of interest at rate of 9 per cent per annum for period preceding suit – Whether a privity of contract existed between them in relation to sale and purchase of goods in dispute in regard to which no document was admittedly executed - Whether person actually placing order was a partner of defendant firm or a person authorised by it - Held, In this connection it is to be noted that no plausible reason can be found for plaintiff recording in his books name of defendant firm as purchaser if goods had really been sold to firm R. K. Patel – Court may point out that name of defendant firm as purchaser is entered in cash book maintained by plaintiff and it is no reason at all for that book to be rejected as unreliable that it is maintained on a fortnightly and not daily basis - Four cheques issued by defendant firm in favour of plaintiff furnish another very important circumstance in derogation of claim made by former - Explanation furnished by its solitary witness that they were issued at instance of Chhotabhai to whom they were delivered does not inspire confidence in Court, main reason therefore being again non-production of account books of two firms a reason which makes Court repel as untenable inference drawn by High Court cheques must have reached plaintiff not directly from defendant but through some other route - There is no reason whatsoever for Court to believe that if case of defendant firm was true plaintiff would have made out story given by him in plaint, absolved real debtor of responsibility to pay and claimed his dues from some one not at all liable for them - Firm R. K. Patel being party liable to plaintiff according to case set up by defendant firm, plaintiff could not be expected to make false entries in his account books and file a suit not against firm R. K. Patel but against defendant firm - Appeal allowed.

Judgment

KOSHAL, J.:- This appeal by certificate granted by the High Court of Gujarat under sub-clause (a) of Clause (1) of Article 133 of the Constitution of India is directed against its judgment dated the 29/30th October, 1969, accepting a first appeal preferred by the defendant firm to it and dismissing the plaintiffs suit which had been decreed by the trial court.

2. The said suit was filed on the 24th November, 1958, in the court of the Civil Judge, Senior Division, Nadiad, by one K. M. Patel for the recovery of Rs. 38,718/- from the defendant firm on account of the price of 225 bags of tobacco weighing 268 Bengali maunds at the rate of Rs. 112/,- per such maund and interest thereon. The case set out in the plaint was that the tobacco in question had been purchased by the defendant firm on the 28th of November, 1955, that the same was despatched to the defendant firm by train from Anklav railway station on the 1st of December, 1955, on which date a bill for Rs. 30,523/- covering the price of the goods and incidental expenses was sent to the defendant firm, that the goods were received by the defendant firm who failed to pay for the same, that ultimately the defendant firm gave to the plaintiff four cheques each for Rs. 5,000/-, drawn on a banking company of Santa but that all of them were dishonoured on presentation. In addition to the said amount of Rs. 30,523/-, the plaintiff claimed Rs. 8,195 on account of interest at the rate of 9 per cent per annum for the period preceding the suit. He further prayed for award of future interest and costs.

3. The defendant firm denied the plaintiffs claim in toto. It averred in the written statement that no goods had been received by it from the plaintiff and that it had given no cheques to him. According to the defendant firm the goods in question had been purchased by it from a firm carrying on business in the name and style of R. K. Patel at Jabalpur which had told the defendant firm that the goods would be sent to it by the plaintiff. In relation to the four cheques the defendant firm stated that on the 29th November, 1957, it had entered into a transaction for the purchase of 900 bags of tobacco from firm R. K. Patel, that them goods had also to be supplied from the plaintiffs warehouse and that it was at the instance of one Chhotabhai belonging to firm R. K. Patel that the four cheques were issued by the defendant firm in the name of the plaintiff and given to Chhotabhai, although the agreement for the purchase of 900 bags of tabacco was ultimately cancelled.

4. On the pleadings of the parties the main question which arose for determination was whether a privity of contract existed between them in relation to the sale and purchase of the goods in dispute in regard to which no document was admittedly executed.

5. At the trial the plaintiff examined only one witness besides himself. He deposed that the transaction was entered into at his business premises in Joshi Kuva by Khudabux, a Munim of the defendant firm, with himself in the presence of Indravadan Muljibhai, P. W. 2 who supported that stand. The plaintiff also banked on document showing that he had obtained permission of the Central Excise authorities for the transfer of 225 bags of tabacco from his godown to the defendant firm at Mahiyar where the defendant firm carried on its business, that the goods were actually received by the defendant firm on the 17th of December, 1955, and that they were stored by the defendant firm in its warehouse. The plaintiff produced his cash book which contained an entry (Exhibit 54) indicating that an amount of Rs. 30,523/- was debited on the 1st December, 1955, to the account of the defendant firm on account of the price of 225 bags of tobacco at the rate of Rs. 112/- per Bengali maund and incidental expenses. The ledger entry (Exhibit 55) conforms to the cash book entry.

On the other hand, Abdul Halim Haji Rahimbux, one of the partners of the defendant firm appeared as its sole witness who de




































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