SUMITRA BALUJA Vs. BHARAT CHEMICAL INDUSTRIES AND OTHERS

JUDGEMENT

(1.) This suit for the recovery of Rs. 1,05,000, has been brought by Smt. Sumitra Baluja with averments that her late husband, Shri K. L. Baluja, advanced a loan of Rs. 56,000 to defendants Nos. 1 to 3 on November 25, 1969. The same was refundable on demand with interest at the rate of 12% per annum. Defendants Nos. 2 and 3 then, for themselves and as partners of their firm, defendant No. 1, executed a pronote and a receipt on the same date to that effect. It was also mentioned that the amount would be paid not later than November 25, 1970. Thereafter, on the same day, these defendants deposited with Mr. Baluja the title deeds of their property bearing No. 369, Industrial Area -A, Ludhiana, and of a bungalow plot situated at College Road, Ludhiana. The former was stated to be of the value of rupees two lakhs and the other Rs. 50,000. However, in spite of the deposit of these title deeds, it is claimed that the transaction was a pure and simple loan and that their deposit was as a sort of collateral security for safeguarding the amount.

(2.) Shri K. L. Baluja, it is next stated, requested the defendants a number of times during his lifetime to return the amount of the loan along with the interest. Thus, the defendants confirmed and acknowledged the loan by their letters dated June 11, 1971, and August 12, 1972, and assured that they were trying to make an arrangement for payment as early as possible. These defendants also delivered 21 post -dated cheques of Rs. 2,500 each to Mr. Baluja. The first of them was payable on September 30, 1973. Similarly, one cheque each was payable on the 30th of each succeeding month, the last date of payment being May 30, 1975.

(3.) Shri Baluja, however, died on December 12, 1973, leaving behind the plaintiff as widow, and defendant No. 4 as his daughter. The latter, however, relinquished her rights with regard to the loan and the interest thereon, in favor of the plaintiff, and as such a succession certificate was granted on August 31, 1976, by a civil court in favor of the plaintiff with respect to the various amounts including the loan and interest in dispute.