( 1 ) THE appellant carried on a business and undertaking at Umaria, Madhya Pradesh, known as Arun Board and Paper Mills. On August 6, 1964, the respondent No. 7 entered into an agreement with the appellant under the terms of which the latter agreed to transfer its right, title and interest in the lease which the appellant had previously obtained from the Government of Madhya Pradesh on April 21, 1961. The consideration for the transfer was Rs. 1,25,000/- out of which the respondent No. 7 was to pay Rs. 25,000/- at the time of the agreement, another Rs. 25,000/- within sixty days after the issue of no objection certificate by the Government of Madhya Pradesh and the balance of Rs. 75,000/-in several stated instalments. In terms of this agreement the respondent No. 7 paid to the appellant Rs. 25,000/- on August 10, 1964, and he also nominated the respondent No. 1 as his nominee in whose name the lease was to be transferred. The respondent No. 2 agreed to guarantee the due payment of the consideration money mentioned above. The appellant made over possession of the undertaking and the establishment to the respondent No. 1. According to the appellant it received from