D PURUSHOTAMA REDDY Vs. K SATEESH

JUDGEMENT

(1.) Leave granted.

(2.) Whether in a suit for recovery of money on a cheque issued by the defendant but dishonoured, the amount received by the plaintiff-creditor in a criminal proceeding should be adjusted, is the core question involved herein.

(3.) Plaintiff - Respondent filed a suit against the appellants, which was marked as O.S. No. 1844 of 2004, for recovery of a sum of Rs. 3,09,000/- with interest. In the plaint, it was averred that Shri K. Balasubramanyam (father of the respondent) and Defendant No. 1 (Appellant No. 1 herein) were good friends. Defendant Nos. 1 and 2 had been carrying on business. They approached the plaintiff through Shri K. Balasubramanyam for financial assistance and obtained a loan of Rs. 2,00,000/- (Rs. 1,00,000/- on 15.03.2001 and Rs. 1,00,000/- on 25.03.2001). Two promissory notes were also executed therefor.