JUDGMENT

Dipak Misra, J.:-Leave granted.

2. In this appeal, the assail is to the legal soundness of the judgment and decree dated 26.2.2009 in R.S.A. No. 1570 of 2008 passed by the learned single Judge of the High Court of Punjab and Haryana at Chandigarh whereby it overturned the decision of the learned Additional District Judge, Kurukshetra in Civil Appeal No. 96 of 2006 dated 12.03.2008 wherein the judgment and decree dated 20.07.2006 passed by the learned Additional Civil Judge (Sr. Division), Pehowa was partially modified.

3. The facts which are necessary to be stated are that the plaintiffs- appellants (hereinafter referred to as “plaintiffs”) had initiated a civil action forming the subject matter of CS No. 337 of 2004 in the court of Additional Civil Judge (Sr. Division), Pehowa for recovery of a total sum of Rs.10,45,620/- along with pendente lite and future interest at @18% per annum. It was the case of the plaintiffs that plaintiff No. 1 is a registered partnership firm carrying the business of commission agent for sale and purchase of food grains in Shop No. 69, New Green Market at Anaj Mandi in Pehowa and plaintiff No. 2 is the partner of the said partnership firm. The plaintiff firm advances money to the agriculturists and charges commission on the sale price of the agricultural produce sold as determined by the market committee. For the aforesaid purpose, it has been maintaining the books of accounts in the regular course of business. The respondent- defendant (hereinafter referred to as “the defendant”) had been maintaining regular and long standing current account with the plaintiffs. The defendant had taken advance from time to time from the plaintiffs which he had promised to return at the shop of the plaintiffs. All the transactions between the parties were entered in the books of accounts which reflected that as on 30.4.2002, a sum of Rs.5,80,000/-stood in the name of the defendant towards outstanding balance and he had acknowledged the same under his signature in the corresponding account entry in the account books of the plaintiffs. The defendant neither returned the money nor brought any agricultural produce for sale to the shop of the plaintiffs till 27.5.2003. The plaintiffs served a legal notice on 26.2.2004 on the defendant to make good the payment and also made repeated requests requiring him to pay the dues, but all requests and demands went in vain and eventually, on 18.8.2004, he refused to comply with the request. Being put in such a situation, the plaintiffs were compelled to institute the suit on 19.8.2004 wherein they claimed Rs.9,72,670/- which included the total amount lent to the defendant at various times and Rs.72,950/- towards interest till the date of filing of the suit and further claimed pendente lite and future interest @ 18% per annum. Be it noted, the borrowings for the financial years 2002-2003 and 2003-2004 were reflected in the “rokar bahi”.

4. A written statement was filed by the defendant which consisted of two parts, namely, preliminary objections and reply on merits. In the preliminary objections, it was stated that the suit was not maintainable; that the father of the defendant was a customer of the plaintiffs’ firm but the defendant had nothing to do with the plaintiffs; that if there was any liability, it was of Kewal Krishan and not of the defendant; that the plaintiffs had no locus standi to file the suit and it was defective for non-joinder of parties; and that no cause of action arose against the defendant. As far as the merits are concerned, reference was made to every paragraph of the plaint and in oppugnation, it was stated that some of the averments were false. As far as the other averments were concerned, the defendant denied them due to lack of knowledge.

5. The learned trial Judge,on the basis of the pleadings, framed five issues. The principal issues that were really addressed on contest were whether the plaintiff was entitled to recover an amount of Rs.10