RAJARAM SAMPAT KUMAR RATHI AND ANOTHER Vs. SHA KAPOOR CHANDJI KISHORILAL, FIRM

JUDGEMENT

(1.) These two revisions 713 and 716 of 1961 arise out of a common order of the Additional Subordinate Judge, Kakinada and made in S. C. Suits Nos. 251 and 252 of 1960 on his file.

(2.) The two suits were filed by the plaintiff-respondent against the petitioner-defendant alleging that his was a registered firm carrying on business at Kakinada. The petitioner-defendant's was a joint family firm carrying on business at the same place and one Raja Ram the father is the managing member of the family; that on 1-12-1959 the petitioner-defendant borrowed a sum of Rs. 900/- and executed a promissory note agreeing to pay the said amount with interest at 1-0-6% per mensem. In the second suit the amount claimed was Rs. 1500/- and the promissory note was dated 27-11-1959.

(3.) The petitioner-defendant pleaded that the two notes are not supported by any valid consideration. He was carrying on his speculative business in castor seeds, cotton, silver and gold with one Umed Mall. The petitioner-defendant used to purchase and sell by forward contracts and neither party had any time to take actual delivery of the articles at any stage. The contracts were being adjusted by settling differences. In that connection the amount was found due and pronotes were executed in the name of the plaintiff-respondent who is also a partner of the firm and a brother of Umedmal. As the contracts were wagering contracts, their claims were not enforceable.