Bimal Chandra Basak, J. - (1.) This appeal arises out of a judgment and decree passed by learned Single Judge of this Court in favour of the plaintiff against the defendants for Rs. 16,17,833.17 P. interest on the said sum at the rate of 9% per annum from 8.7.65 to the date of the suit, interim interest on the principal sum adjudged at the rate of 6% per annum, interest on judgment at the rate of 6% per annum until recovery. The plaintiff was awarded only half cost of the suit.
(2.) The learned Judge in his judgment has dealt with the facts of the case, the oral and documentary evidence tendered before him and also questions of law raised before him in detail. We shall deal with the same in short.
(3.) In the year 1966 this suit was filed by Kalinga Tubes Ltd. against General Trading Co. and its partners and one Sikenderlal Kapur for recovery of Rs. 16,17,833.17 P. on the allegation as follows Kalinga Tubes Ltd. carried on business as manufacturer of pipes and also used to sell pipes and various other goods. Since the middle of 1958, the defendant No. 2 Kapur was in charge of all the indents of purchase and sales of Kalinga Tubes and become one of its directors in June, 1961. The defendant No. 1 was a partnership firm and the defendant Nos 3. 4 and 5 were its partners. It was alleged by Kalinga Tubes (hat the defendant No. 1 actually belonged to Kapur who used to carry on the said business in the benami names of the defendant Nos. 3, 4 and 5. According to the Kalinga Tubes, Kapur introduced the defendant No. 1 in 1959 and started supplying goods to them on credit although the usual practice of Kalinga Tubes was to sell against cash payments or bank documents. Kalinga Tubes, at the request of the defendant No. 1 agreed to sell the the goods on credit as Kapur gave oral guarantee to Kalinga Tubes that he would pay in case of default on the part of the defendant No. to The transactions started from 1959 and a mutual open current account as kept in respect of the same. The defendant No. 1 used to make part payments in the said account and after adjustment of the said payments, a sum of Rs. 16,17,833 17 P. was found due in the said account which sum or any portion thereof the defendants failed and neglected to pay inspite of demands. It was alleged that at the Board's meeting of Kalinga Tubes dated 29.9.65 Kapur assured and guaranteed that he would see that the balance amount would be paid before the ensuing Annual General Meeting of Kalinga Tubes to be held on 27-10-65, but nothing happened. Thereafter in the Board meeting of 27-10-65 Kapur again give personal guarantee for the due payment of the said sum which was recorded in the minutes of the meetings of 27-10-65. It was further alleged that the conduct of Kapur as a Director of Kalinga Tubes amounted to breach of trust and/or breach of his fudiciary duties towards Kalinga Tubes and as such he was liable to account for the loss suffered by the Company. No part of Kalinga Tubes claim was barred by limitation as the account was mutual open and current and that the defendants acknowledged their said liabilities in writing within the period of limitation. Interest at the rate of 9/0 was claimed on the said amount.;