JUDGMENT

J. Chelameswar. J. - The appellant is the first defendant in the suit. The appellant sold tobacco to the second respondent/ second defendant and towards the value of the said tobacco, the appellant was given a cheque dated 2-11-1987 (Ex. A-1) for an amount of Rs. 9,000/- by the second respondent. The cheque was drawn on the first respondent - plaintiff bank's branch at Guntur. On receipt of the cheque, the appellant presented the same to the first respondent - bank's branch at Kovvur with whom the appellant had an account. The first respondent - Dank discounted the cheque and paid an amount of Rs. 5,000/- to the appellant and the balance amount of Rs. 3,975/- was credited to the Savings Bank Account of the appellant maintained with the plaintiff -bank.

2. The cheque (Ex. A-1) was an account payee cheque. When the first respondent sent the cheque to the drawee Bank i.e., Andhra Bank branch at Guntur, the same was returned with an objection memo stating that the drawer exceeded the arrangement with the bank and hence the suit.

3. The suit was decreed against both the defendants i.e., the appellant and the second respondent herein to pay an amount of Rs. 15,415.50Ps with future interest at 6% perannum, from the date of the institution of the suit till the date of the realization and costs.

4. Aggrieved by the said judgment and decree dated 16-4-1985, the present appeal is preferred by the first defendant.

5. The principal submission of the learned Counsel for the appellant is that as the, cheque inquestion was discounted by the first respondent - bank, there is no creditor and debtor relationship between the first respondent and the appellant.

The cheque inquestion was in fact not endorsed but transferred only by delivery by the appellant in favour of the first respondent and hence negotiated. The first respondent on such negotiation having discounted the bill become a holder in due course and therefore the relationship of creditor and debtor exists only between the respondents herein and the appellant has no legal liability to suffer the decree.

6. The fact that the cheque inquestion was discounted, by the first - respondent is not disputed.

7. B1lls of exchange have been a common means of financing trade nationally and internationally. A brief history of the origin and development of the bills of exchange and their purpose in the language of the celebrated authors Bhashyam and Adiga:

"………….In primitive societies, the system of bills of exchange could not, of course, have existed; for firstly, money which it represents was not invented till long after, and secondly, the art of writing was a thing unknown to them. When the system of bartering, by which crude and uncivilized societies carried on their commerce, was found inconvenient, a common medium of exchange and a representative of property of an easily convertible character was found necessary and money came into use. It might have had its humble origin in cowrie shells, brass or copper rings; but when once the utility of money was found, it never was lost sight of. With the progress of civilization, nobler metals displaced the baser ones, and the use of gold and silver as instruments of exchange is now to be found generally current in all civilized countries, With facility of communication between countries, and security of peace between nations, commerce of the world grew apace and one nation after another struggled for supremacy. The Phoenicians, Grecians and Carthaginians were more or less the chief commercial nations of the ancient world. The routes along which the vast commerce was carried on were insecure, and merchants carrying specie or coins were robbed of their wealth by roving pirates on sea and marauding robbers on land, Money by itself did not obviate all these difficulties arising from the multiplicity of commercial transactions, and in the course of centuries, there came into existence the idea of exchange, whereby letters of credit, generally called