1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY O. O. C. J. Summons for Judgment No.304 of 2008 IN Summary Suit No.2124 of 2008 Mulchand Ramji Saiya .. .. Plaintiff v/s. M/s.Chhaya Cut Piece House & ors. .. Defendants Mr.Q.M. Ashfaq for Plff. Mr.P.M. Shah for Deft.Nos.1, 5, 6, 7 & 8. ------ CORAM : SMT.ROSHAN DALVI, J. Dated : 6th April 2009 P.C. : 1.This Suit was filed upon the four Promissory Notes dated 1.7.2005, 1.8.2005, 1.11.2005 and 1.11.2005 for Rs.3,00,000/-, Rs.1,00,000/-, Rs.5,00,000/- and Rs.5,00,000/-. The total sum payable under the Promissory Notes is Rs.14,00,000/-. It is required to be paid at the rates of interest mentioned therein. The first two Promissory Notes are payable at the rate of 1.1% per month. The last two Promissory Notes are payable at the rate of 1% per month. 2.No principal amount having been paid, a legal Notice was sent. The legal Notice showed payment of interest. In fact 2 no interest amount was also paid. A reply to the Notice was given by the Defendants separately. Defendant Nos.3 and 4 addressed a reply personally. No reply was sent by Defendant Nos.3 and 4 as partners of Defendant No.1-Firm. They denied their liability. Defendant Nos.1 and 2 sent a reply as partners of the Firm of Defendant No.1. They also denied their liability. It is stated that they were not in management of the Firm. They denied that the loan was taken. They also denied payment of any interest as mentioned in the Demand Notice or that they promised to repay the loan amount. Hence the entire reply of 4 partners on behalf of the Firm of Defendant No.1 is a denial of the transaction as a whole. 3.Upon the reply, the Plaintiff concedes that no part of interest was also paid. Hence the Plaintiff has shown the particulars of claim of the entire principal amount and the entire amount of interest from the dates of the Promissory Notes until the filing of the Suit in the Particulars of Claim, Exhibit-G to the Plaint. An Affidavit-in-reply was filed by some of the partners on 16th October 2008. It has been filed by some other partners on 3.4.2009. The reply is essentially the same. The defence, if any, has to be considered. The defence is that the Promissory Notes are forged. Even the 3 rubber stamp of the 1st Defendant-Firm is forged. There are variances in the signatures. The dates are not written correctly. Interest amounts are different under the Promissory Notes. The transactions were cash transactions without any books of accounts being maintained. Hence the reply also shows a complete case of denial. 4.The Defendants have relied upon a cross-examination of the Plaintiff in a criminal proceeding filed by the Plaintiff under Section 138 of the Negotiable Instruments Act against another person who had taken the loan and in which the Plaintiff was cross-examined. In that cross-examination, the Plaintiff has stated that he knows Defendant No.5 of Defendant No.1-Firm and that the Plaintiff never had any loan transaction on interest with Defendant No.5. Nothing turns on the said evidence. Defendant No.5 is sued only as a partner of the Firm. The Firm has taken the loan. The partners have signed the Promissory Notes. The partners have implied authority to bind the Firm. The partners are accordingly liable for the debts of the Firm. Knowing or not knowing one of the partners and an individual transaction of other partners has nothing to do with the business transaction in the suit represented by the four Promissory Notes. 4 5.Upon the Defendants' case of total denial, the Plaintiff has produced further evidence to show the transaction under the suit demand Promissory Notes. This is shown by the 5 cheques, all for Rs.1 Lakh and all dated 1.1.2007 signed by Defendant No.5 as the partner of Defendant No.1-Firm. These cheques represent part payments of the loan amount sought to be made. Each of the cheques is dishonoured. Since the Plaintiff has not sued upon the cheques, the Plaintiff has not had to and has not shown these cheques as part of the Plaint. The Plaintiff has relied upon the dishonoured cheques for the collateral purpose of showing the part payments sought to be made which remained at that. There is no substantial defence. 6.Upon the Defendants depositing Rs.14 Lakhs representing the principal amount on the Promissory Notes within 8 weeks, leave to defend is granted. If the amount is deposited, Defendants to file their Written Statement within 30 days of the deposit. (SMT.ROSHAN DALVI, J.)