Ranjot Singh
denied having purchased barberry roots from the Kalyan Singh. It was pleaded
that the parties were dealing in the sale and purchase of barberry roots and
have been supplying the same in Lucknow (UP). The defendant was possessed of
the requisite licence for sale/supply of roots in U.P. whereas the plaintiff
was not possessing such a licence. The plaintiff, therefore, had approached the
defendant for the sale of his barberry roots in U.P. area. The plaintiff had
agreed to receive the payment of cost of such roots as and when the same would
be received by the defendant. Issuance of cheque for Rs. 37,000/- was admitted
by the defendant. It was pleaded that such cheque was issued on the instance of
the plaintiff, who had given an undertaking not to encash the cheque till
payment was received from Lucknow by the defendant. An agreement in writing to
this effect was executed between the parties.
The defendant
issued a cheque for the said amount in favour of the plaintiff. Such cheque on
presentation to the Bank for encashment was returned as dishonoured for want of
sufficient funds in the account of defendant. The plaintiff filed the suit for
the recovery of as interest on such principal amount at the rate of 18% per
annum.
The judgment of District Judge is set aside
and that the plaintiff shall be entitled to costs throughout.
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