IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 23/11/2007

C O R A M

THE HONOURABLE Mr.JUSTICE C. NAGAPPAN

Appeal Suit No. 816 of 1995

1. M/s. Skins Tane Co.,

rep by its Partners

No.1-B, Mattukara Veerabadran St.,

Periamet, Madras 600 003.

2. A.M.Abdul Khader

2^nd Appellant is one of the Partner

of 1^st Appellant Firm

No.1-B, Mattukara Veerabadran St.,

Periamet, Madras 600 003.

...

Appellants/Defendants 1 & 3

Vs

Central Bank of India

Madras Main Branch

rep by its principal Officer

and Chief Manager

No.11, Second Line Beach

Madras 600 001.

... Respondent/Plaintiff

Appeal against the judgment and decree dated 25.4.1994 made in

O.S.No.11102 of 1988 on the file of 18^th Asst. Judge, City Civil Court,

Madras.

For Appellants

... Mr. Ishtiaq Ahmed

For Respondent

... Ms. S.K.Indhu,

for M/s. Rangarajan &

Prabhakaran

J U D G E M E N T

The unsuccessful defendants 1 and 3 have preferred this appeal

against the judgment and decree dated 25.4.1994 made in O.S.No.11102 of

1988 on the file of 18^th Assistant Judge, City Civil Court, Madras.

https://hcservices.ecourts.gov.in/hcservices/

2. The respondent herein filed the suit seeking for a judgment

and decree directing the defendants to pay the plaintiff a sum of

Rs.70,459.92/- with interest at the rate of 16.5% per annum from the date

of plaint till the date of realisation and for costs of the suit.

The case of the plaintiff is that the first defendant is a

partnership Firm and defendants 2 to 7 are its partners and the first

defendant opened a current account with the plaintiff on 12.9.1987 in

respect of its leather business and it was regularly issuing cheques to

various parties and the plaintiff has been honouring those cheques and

the first defendant issued three consecutive cheques all dated 20.11.1987

for Rs.29,789/-; Rs.334/- and Rs.75,000/- respectively and all the three

cheques were drawn in favour of the Sales Tax Officer, Vepery Assessment

Circle, Madras, and the plaintiff as a prudent banker and keeping in mind

that the first defendant is a commercial organisation and the cheques were

drawn on a government agency, had in good faith passed all the three

cheques for payment on 9.12.1987 even though there was a credit balance of

only Rs.1,312.03 in the current account of the first defendant with the

plaintiff. It is also stated by the plaintiff that the representative of

the first defendant, who was present in the bank premises on 9.12.1987,

consented to the honouring of three cheques and promised to bring

sufficient funds immediately and adjust the overdrawn position.

According to the plaintiff, the first defendant, on 6.1.1988, adjusted the

current account to cover the monies due to the plaintiff in respect of

the cheques for Rs.334/- and Rs.29,789/- and it did not repay the

plaintiff the sum of Rs.75,000/- being the amount due in respect of the

third cheque. It is further stated by the plaintiff that the first

defendant by letter dated 24.12.1987 informed the plaintiff that it had

filed a writ petition in WP No.13062 of 1987 in this Court and obtained

injunction order and requested the plaintiff to stop the payment of the

third cheque for Rs.75,000/- and the plaintiff sent a reply dated

29.12.1987 informing the first defendant that all the three cheques were

paid for by the plaintiff on 9.12.1987 itself. According to the

plaintiff, the defendants refused to pay the outstanding amount and issued

legal notices dated 8.1.1988 and 7.7.1988 and the plaintiff sent reply

notice dated 28.7.1988 requesting the first defendant to settle the dues

and that was not done and hence the suit.

3. The defendants in the written statement admitted that they

are having a current account with the plaintiff and they issued all the

three cheques for the sums stated therein. According to them, they issued

letter dated 24.12.1987 giving instruc