RAMLAL ONKARMAL FIRM vs MOHANLAL JOGANI RICE AND ATTA MILLS

The Supreme Court held that the respondents, having received a cheque as conditional payment, must be deemed to have accepted a subsequent demand draft as absolute payment, thereby discharging the original debt. The Court emphasized that the respondents' failure to collect the draft in a timely manner led to the conclusion that they had retained it as full payment. Consequently, the original debt was discharged, affirming the High Court's decision to reverse the sub-Judge's dismissal of the suit.