Derbyshire, C J - (1.)This is an appeal by the defendant in the suit against a decree passed by Ameer Ali J. pursuant to a judgment delivered on 2 June, 1937 whereby he, in effect, ordered rescission of a contract for the sale of a share in some property. The plaintiff is a young man of thirty and the defendant is described as the cousin of the plaintiff and 49 years of age. In the year 1931 the plaintiff had come into a little money from his father who had recently died and he was living with the defendant. Whilst he was there he entered into an agreement with the defendant for the purchase by him from the defendant of 1/32nd share in some property described as the Dinhata Jute Company in Cooch Behar for the sum of Rs. 12,500. The plaintiff says that he was induced to enter into that contract by the fraud of the defendant and asks that the contract be rescinded. In his claim originally the plaintiff stated that the defendant made various misrepresentations to him, but only one was specified, namely that the defendant represented to the plaintiff that the Municipal value of the Dinhata Jute Company was four lacs of rupees. The plaint was filed on 2 August, 1934. On 30 August 1934 the defendant's attorney wrote for further particulars of misrepresentations alleged and on 5th January 1935 the plaintiff's attorney by a letter set out three representations (A)(i), (ii) and (iii) upon which he relied. The representations were: (i) That ha received an offer of Rs. 9,20,000 from a client of Mr. Philip Oddie of Messrs. Morgan & Co., Solicitors and also another offer of Rs. 8,20,000 from another party and also showed various correspondence that passed between Mr. Oddie and the defendant to persuade the plaintiff. (ii) The defendant also showed the plaintiff a promissory note exeouted by Paresh Lai Eoy, an official of E.B. Ry., Lal Monirhat for Rs. 23,000 in consideration of the defendant's transferring one anna share in his Dinhata Jute Company in Cooch Behar for Rs. 25,000 of which Rs. 2000 was paid in cash. (iii) The defendant also showed the plaintiff a conveyance in favour of Nawab Khusru Jung (Home Minister, Kashmir State) for Rs. 50,000 purporting to convey two annas share in the said Jute Company.
(2.)We are only concerned with the representation that the plaintiff received offers of Rs. 9,20,000 and Rs. 8,20,000 through Mr. Phillip Oddie of Messrs. Morgan & Co. It does not appear to be disputed that the other representations were true. We have been through the evidence in this matter and I, for my part, have come to the same conclusion as the learned Judge who tried the suit as to the credibility of the various persons who gave evidence. I regard the plaintiff as truthful, but somewhat simple. I do not believe the evidence of the defendant and I see no reason to disbelieve the evidence given by Mr. Hafez who was called as a witness by the Court. The fraud complained of is this: the plaintiff says that before he agreed to buy the share of the property he was shown three letters relating to the Dinhata Jute property. The first one was a letter from Mr. Oddie, a solicitor with the well-known firm of attorneys, Messrs. Morgan & Co. of Calcutta, and it was written to the defendant. The relevant portion of it is as follows: I am glad to say that I have now got into touch with the client about whom I spoke to you the other day, and he is anxious to buy the above property. The terms upon which it can go through is as follows: 1. Purohase prioe to be rupees nine lacs payable as to three lacs on completion of the conveyance and the balance to be paid by equal four monthly instalments over a period of two years.
(3.)Then follow other terms as to interest on the purchase money, and it is suggested that Mr. Oddie might be able to go to England for the purpose of floating a company to take over the property. The second letter was written by Mr. H. M. Hafez to Mr. Oddie on 13 January 1931 headed: Dinhata Jute Co. The material portion of it is as follows: With reference to my conversation with you this morning this letter is to make you an offer for the purchase of the above property on the following terms: 1. Purchase price will be Rs. 9,20,000. 2. A deposit of Rs. 3,00,000 will be paid immediately if this offer is accepted and the balance will be paid in two instalments over a period of. one year. 3. Security will be given for the balance in a form which will be submitted to you on hearing from you that this offer is accepted.