Defendant no. 03 had obtained a contract of installation of water pipe line from defendant no. 02 at Majalgaon and other places. Hence, defendant no. 03 was in need of material for the said work. In the year 2004, defendant no. 03 approached to the plaintiff and requested him to supply material for the above work and thereby started buying pipe line and other material from the plaintiff. Defendant no. 03 was making some payment in cash and some payment by issuing cheques to the plaintiff. Due to fair dealing and continuous supply of the material by the plaintiff and payment of bills by defendant no. 03, they have developed a friendly relationship. Defendant no. 03 has gained the confidence of the plaintiff and their relations became good and cordial. Defendant no. 03 was also directing defendant no. 02 to issue the cheques directly to E.E.C. Sales Organization. Accordingly, defendant no. 02 used to issue the cheques of payment of the goods and other material purchased by defendant no. 03 from the plaintiff. In the year 2004-2005 and 2005-2006, defendant no. 03 has directly issued the cheque of Rs.10,32,386/- on 05/05/2005, the cheque of Rs.9,76,761/- on 08/08/2005 and the cheque of Rs.9,20,192/- on 09/08/2005. In the same manner, defendant no. 02 also issued a cheque of Rs.3,00,000/- to E.E.C. Sales and Organization. Due to this, prompt dealing, the plaintiff gained the confidence of defendant no. …show more content…
Thereafter, time to time, the plaintiff contacted defendant no. 03 and requested him to arrange payment of Rs.15,00,000/-, but defendant no. 03 was making sweet promises and giving assurance of making payment. On 02/04/2007 the plaintiff contacted defendant no. 03 and requested him to pay Rs.15,00,000/-, to which defendant no. 03 flatly refused. Hence, the plaintiff approached the office of defendant no. 02 and requested to issue cheques directly to him as per the agreement between the plaintiff and defendant no. 03 dated 07/07/2005, but defendant no. 02 also refused. Defendants no. 02 & 03, in collusion with each other, were trying to get entire pending outstanding amount of the bills and if they succeeded to get release the outstanding bills, then the plaintiff will deprive from recovering due amount from defendant no. 03. The plaintiff is entitled to recover Rs.15,00,000/-, which was advanced to defendant no. 03 as hand loan and Rs.3,00,000/- towards damages as per the agreement dated 07/07/2005, with interest at the rate of 18% per annum. Ultimately, the plaintiff prayed to decree the suit with