SANJAY KUMAR Vs. SURESH CHAND GUPTA

JUDGEMENT

(1.) PRESENT appeal has been directed against the judgment and decree dated 22.07.2010 passed by the Ld. Trial Court dismissing the application filed by the appellant seeking leave to defend and decreeing the suit of the plaintiff respondent herein.

(2.) THE brief facts necessary for disposal of the present appeal are that a loan of a sum of Rs. 6,60,000/ - was advanced by the respondent to the appellant vide a cheque dated 27.05.2005. As the amount was not paid despite notice, the respondent filed a suit under the provision of Order XXXVII Rule 2 for recovery of the loan amount. Summons for judgment were issued to the appellant. The appellant filed an application under Order XXXVII Rule 3 seeking leave to defend in which the appellant prayed for unconditional leave to defend on various grounds. The Learned Trial Court dismissed the application for leave to defend and decreed the suit against the appellant and held that the respondent is entitled to recover a sum of Rs. 6,60,000 from the appellant along with interest @ 15% per annum from the date of filing of the suit till the date of the decree.

(3.) THE main thrust of the argument of the counsel for the appellant is that the loan advanced by the respondent to the appellant was an interest free loan and that the entire loan amount has been paid to the appellant. It is submitted that the respondent has foiled to adjust the various amounts paid by the appellant from time to time towards the repayment of the loan. It is further urged by the counsel for the appellant that the respondent has admitted the receipt of a sum of Rs. 3,46,025/ - which the respondent has erroneously adjusted towards the payment of interest as the loan was a friendly loan and no interest was payable. It is further contended that the balance amount has been paid in cash.