The main legal point established in the judgment is the application of hire purchase agreement terms, ownership rights, entitlement to sale proceeds, and the principles of damages in determining the recovery amount.

S. U. KAMDAR, J.

( 1 ) THE present suit has been filed by the plaintiffs for recovery of a sum of Rs. 72,311/- with interest on the principal amount of Rs. 63,677/- at the rate of 18% per annum from the date of the suit till payment and/or realisation and Rs. 1,15,595/- towards damages along with interest at the rate of 18% per annum. Some of the material facts of the present case are as under :

( 2 ) ON 1. 9. 1976 an agreement was executed between the plaintiff as the owner of the vehicle and Defendant no. 1 company for purchase of motor vehicle bearing Registration No. GTT - 4010 on the higher purchase basis. The 2nd defendant executed a guarantee in respect thereof. On execution of the said agreement, the defendant No. 1 made payment of the sum of Rs. 15,371. 92 as and by way of initial payment for the purchase of the said motor vehicle and agreed to make balance payment in instalments which will become due from time to time as provided in the said agreement. It is the case of the plaintiff that the defendant No. 1 was irregular in making payment of instalment amount and accordingly a notice was issued by the plaintiffs to the defendant no. 1 on 13. 9. 1977 seeking payment of the entire balance amount then due and outstanding. According to the plaintiffs, as on the date of the notice an outstanding which is payable with interest for delay in payment was a sum of Rs. 29,096/- The plaintiff also issued a notice to the 2nd defendant as guarantor to pay to the plaintiff a sum of Rs. 29,096 being eight monthly instalments then overdue. The plaintiffs say that in spite of the said notice the defendant neither made the payment of the said amount nor paid the instalments on due dates. In fact two cheques given by the defendant no. 1 were dishonoured. In the aforesaid circumstances, the plaintiffs have filed the present suit for the recovery of the aforesaid principal amount of Rs. 63,677/- with interest at the rate of 18% as on the date of the suit amounting to Rs. 72,311 / -. The plaintiffs thereafter took over the possession of the said vehicle and sold the same and has received the sale proceeds of Rs. 91,000/ - after deducting the expenses of the said sale the plaintiff has got Rs. 90. 000/- towards sale proceeds. The plaintiff has also claimed Rs. 1,15,595/- as damages inter alia on the basis that the plaintiff is entitled to the entire amount covered under the said agreement which was an amount of unpaid instalments for the entire duration.

( 3 ) FROM the aforesaid narration, the following admitted facts emerges.

( 4 ) THE total amount covered under the said hire purchase agreement for the vehicle was sum of Rs. 1,42,672-92. The sum of Rs. 15,371-92 has allready been paid by the defendant to the plaintiff at the time of execution of the said agreement. Thereafter the defendant has made further payment of three instalments as mentioned in Exhibit "i" to the plaint totally amounting to Rs. 1 1,706/- Thus, under the agreement the defendant has paid total amount of Rs. 15,371-92 + Rs. 11. 706/ -. Thus, if the entire agreement is to be worked out, the total amount liable to be paid by the defendant to the plaintiffs was Rs. 1,42,672. 92 and after giving credit of the amount paid, the balance amount due and payable by the defendant to the plaintiffs is 1,15,595/ it is an admitted position before me that under the said agreement the defendant has sold the said vehicle and the sale proceeds thereafter is thus required to be set off against the claim of Rs. 1,15,595/ -. The said sale proceeds as admitted by the plaintiffs is Rs. 90,464/ -. Thus, the balance amount payable under the agreement by the defendants to the plaintiffs is in my opinion only of Rs. 25,131/ -. However, the plaintiffs in the present suit are claiming by prayer Clause (a) an amount of Rs. 72,311 /- and by way of prayer (b) an amount of Rs. 1,15,595/- as damages. I am unable to accept the contention of the plaintiffs that the plaintiffs are entitled to the a