MOTILAL JAGANNATH Vs. NATHULALJI NARSIGHJI

JUDGEMENT

(1.) THESE two Second Appeals Nos. 136 and 137 of 1956 arise out of two different suits between the same parties. Each of these two suits are based on Badala Chithis executed by the Defendant Natbulal in favour of the joint family firm of the Plaintiffs Biradichand Jagannath on Mangasar Bidi Amasvas Samvat Year 2003 and Maha Bidi 2 Samvat Year 2003 for two several sums of Rs. 5,000 borrowed by the Defendant from the Plaintiffs' firm. Each of the amount was repayable at the end of twelve months from the date of the Chithis. The Plaintiffs alleged that the Defendant paid only Rs. 2,187 -8 -0 towards the liability under each of the Badala Chithis and failed to pay the balance. Plaintiffs therefore filed two different suits for recovery of the balance of principal amounts of Rs. 2,812 -8 -0 in each case without charging any interest.

(2.) THE defence to these suits was the same. It was that the present suits were not competent as the Defendant after the execution of the Badala Chithis aforesaid had been financially embarrassed and he had constituted a committee of creditors to whom he had entrusted bis property for payment to his creditors ratably; that the Plaintiff was a consenting party to this arrangement and had received dividends from the committee amounting to Rs. 2,187 -8 -0 in each case: that the committee had not ceased to function and consequently the Plaintiff could only look to the committee for the repayment of his dues and could not sue the Defendant. During the pendency of each of these suits the creditors' committee declared further dividends and consequently Rs. 1,250 had been deposited in each of these cases towards the Plaintiffs' dues.

(3.) ON appeal the decision was confirmed.