MADEGOWDA Vs. G M PUTTASWAMY

JUDGEMENT

(1.) The appellants herein were the defendants before the learned Judge, Court of Small Causes and Additional Civil Judge (Sr.Dn.) at Mysore (hereinafter for brevity referred to as "Trial Court") in O.S.No.5/1999. The said suit was filed against them by the present respondent in his capacity as a plaintiff for recovery of a sum of Rs. 1,12,480.00.

(2.) The summary of the case of the plaintiff in the Trial Court was that the defendants for their necessity had jointly borrowed a sum of Rs. 40,000.00 and Rs. 30,000.00 from the plaintiff on 15-02-1996 and 10-03-1996 respectively. They had agreed to repay the same with interest at the rate of Rs. 2% per month thereon. In that regard, both of them had executed an On-Demand Promissory Notes with consideration receipts. Inspite of repeated demands, the defendants failed to repay the loan amount and the interest there upon. The plaintiff also got issued a legal notice on 08-10-1998 to the defendants for which they sent an untenable reply on 05-11-1998. Since the repayment of the loan remained unpaid to the plaintiff, he was constrained to institute a suit in the Trial Court.

(3.) The defendants after appearing in the Original Suit had filed their Written statement wherein, they had denied the plaint averments that they had availed a loan of a total sum of Rs. 70,000.00 from the plaintiff. On the other hand, they had taken a contention that the plaintiff was running a Chit business and the defendants were members therein. At the time of drawing Chit amount and at the force of the plaintiff, defendants signed two blank stamp papers only as a security in respect of the Chit transaction. However, those stamp papers were misused by the plaintiff by filing a false suit against them. They also stated that on 03-10-1997 itself, they had filed a Criminal Complaint against the plaintiff in K.R. Police Station. As a counter blast of the same, the plaintiff has filed the present suit against them.