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3. On 3-9-54, the Enforcement Supervisor of Supplies seized blocks of Anakapalli gur and some 1500 blocks of Parlakimedi gur from the plaintiffs' shop. Criminal Case No. 196 of 1944 was lodged in the Court of the S. D. M., Berhampur under Section 13(1) of the H. P. P. Ordinance against Iswardas and defendant Sabatho. The defendant was discharged and Iswardas was convicted and the 500 blocks of gur were forfeited to the Government:

The important part of the defence version is that in fact as the parties had dealings in salt of considerable quantities the defendant used to keep regular accounts of the said business in the ordinary course of business, the accounts were current, mutual and open. In that account the said sum of Rs. 8,679/- that is, the sum advanced by the plaintiffs and the freight charges were accounted for towards the credit of the said plaintiffs, and the defendant had never taken the sum of Rs. 8,300/- and odd by way of a loan. There was no stipulation for payment of interest whatsoever. The amount was advanced towards mutual dealings of the parties and was so accounted for in the mutual accounts. The suit therefore is bound to fail, according to defendant Sabatho.