JUDGMENT :- This is a defendants appeal against the judgement and decree dated 6-1-1969 passed by the II Additional Civil Judge, Moradabad in Civil appeal No. 218 of 1968 arising out of original suit No. 59 of 1963.

2. Facts relevant for the disposal of this appeal are these : The defendant appellant carries on business in Bhopal district Fatehgarh. The appellant placed order for supply of some utensils with defendant Nos. 2 to 4. The defendant respondents handed over railway receipt along with a hundi to plaintiff respondent No. 1. The plaintiff respondent No. 1 sent R-R and hundi to the Punjab National Bank. The hundi was payable after 21 days. The appellant accepted the hundi and took railway receipt from the bank. Thereafter the appellant took delivery of

the goods. But the appellant did not make payment of the hundi to the Bank. Therefore, the plaintiff respondent No. 1 brought suit for recovery of the amount of the hundi.

3. The appellant contested the suit on the grounds that the plaintiff respondent No. 1 was not a holder in due course of the hundi, that the liability to pay for the goods arose after the goods had been checked, that after taking delivery it was found that som

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