Arunasalem Chetty vs Vee Rawago – clr volume 2 page 143_2

In the case between the plaintiff, acting as a seller and agent for the chetty firm R. M. M. S. T., and the defendant, a purchaser of rice and other goods, the court addressed whether the plaintiff retained the right to recover the debt after taking promissory notes, and the legal impact of a subsequent composition agreement with creditors. It was held that, where the plaintiff pleaded both payment of money and acceptance of promissory notes in satisfaction of the debt, such inconsistent claims precluded further recovery, as the pleadings put the plaintiff out of court. The principle reaffirmed is that an unqualified acceptance of a negotiable instrument in satisfaction of a debt generally extinguishes the original claim unless the note is dishonoured and the pleadings allow reviving the i