1. - This first appeal under section 96 of the Code of Civil Procedure has been filed by the defendant-appellant against the decree and judgment dated 29/2/1992 passed by Additional District Judge No.1, Jaipur City, Jaipur in Civil Suit No.(214/88)73/89 whereby suit filed by plaintiff-respondent has been decreed.

2. Brief facts giving rise to this appeal are that plaintiff had supplied material vide three separate bills in all amounting to Rs. 2,72,574.56 to the defendant-company and at the time of these supplies there was a credit balance of the defendant company with the plaintiff company amounting to Rs. 1886.51. The defendant company could not make payment despite of several reminders and after sometime on 17/12/1977 the appellant company was declared relief undertaking under the Rajasthan Undertaking (Special Provision) Act, 1961. By virtue of the notification issued in this regard, the defendant company was protected from institution of suit or any legal proceeding. The protection continued for a period of ten years upto 16/12/1987 and thereafter plaintiff company filed a suit for recovery of goods price of Rs. 1,69,868.08 and interest thereupon i.e. Rs. 4,35,968/-, after adjustment of Rs. 5097.4 through debit note dated 30/11/1977 and Rs. 95722.93 which was received by the plaintiff Shanti Lal and brothers on 31/3/1982.

3. The defendant company in its written statement admitted that due to dwindling financial position and booked debts amounting to several crores of rupees, the defendant company was declared relief undertaking vide State Government Order dated 17/12/1977 and this notification continued uptil 16/12/1987. According to the defendant company when its financial position improved, offer was floated to its creditors that principal sum may be paid in ten yearly equal instalments or 50% of principal amount at the time of full and final settlement. The defendant company wrote letters to all the creditors including the plaintiff company. The Chairman cum Managing Director Shri Heera Bhai of plaintiff company agreed to settle on full and final satisfaction of payment of principal amount at one time in a meeting held with Chairman and Managing Director of the defendant company and accepted the cheque of Rs. 1,69,868.04, therefore, nothing remained outstanding against the defendant company.

4. On the basis of the pleadings, following issues were framed:-

1- D;k oknh okn&i= ds pj.k dze 1 ds vuqlkj izfroknh ls 4]35]968@& :i;s dqy C;kt izkIr djus dk vf/kdkjh gS\

2- D;k oknh dh vksj ls Mk;jsDVj Hkh egsanz pkS/kjh dks okn izLrqr djus dk vf/kdkjh gSa\

3- D;k oknh ds ps;jeSu Jh ghjkHkkbZ pkS/kjh }kjk izfroknh daiuh ds ps;jeSu Jh vkbZ0,l0 dkofM+;k ls 1]69]868 :i;s 04 iSls dh jkf'k ysdj Qqy ,aM QkbZuy lsVyesaV djds jlhn Hkst nsus dk ok;nk fd;k FkkA okn ij mldk D;k izHkko gSa\

4- D;k oknh vly 'ks"k jde ls vf/kd C;kt izkIr djus dh vf/kdkfj.kh ugha gSa\

5- D;k nkok fe;kn ckgj gS\

6- vuqrks"k\

5. The trial court after recording the evidence and hearing the parties decreed the suit in favour of the plaintiff company to the tune of Rs. 3,30,250/- along with interest thereon at the rate of 5% per annum from the date of filing of the suit till payment. Hence, this appeal by the defendant.

6. Heard learned counsel for the parties and perused the impugned judgment and material available on the record.

7. The first point raised on behalf of the appellant-defendant-company is that on improving its financial position, the appellant-company floated an offer in the month of January, 1986 vide Ex.A-1 to all of its creditors to pay outstanding principal balance amount in full and final settlement as per offer made vide Ex.A-1, thereafter in a meeting held in the first week of April, 1988 with the Chairman and Managing Director of the appellant company, the respondent-plaintiff company's Director Shri Heera Bhai agreed to settle the claim on payment of principal amount and thus the appellant company made the entire payment of the balance