DHARSHAN SINGH Vs. AVTAR SINGH

JUDGEMENT

(1.) The plaintiff has filed suit for recovery of Rs.7 ,36,000/~ under the provisions of Order XXXVII of the Code of Civil Procedure. The suit is based on the averments that. the plaintiff had advanced a sum of Rs.4,00,000/~ to the defendant out of which Rs.85,000/- were given by way of cheque and a sum of Rs.3,15,000/- was given in cash. Out of this Rs.4,00,000/- the plaintiff No.1 had given Rs.2,00,000/~ and likewise the plaintiff No-2 gave balance sum of Rs.2,00,000/~. It was agreed that the defendant shall pay interest at the rate of 36% P.A. and it was a short term loan given for a period of one year on the condition that the monthly interest of Rs.12,000/- each would also be paid. The defendant in order to secure the said loan and ensure repayment issued a post-dated cheque in the sum of Rs.4,00,000/~ bearing No.786085 dated 16.5.1997 drawn on Haryana State Co-operative Apex Bank Ltd., Chandigarh towards the repayment of the principal amount. He also issued 5 post-dated cheques of Rs.12,000/- each bearing No.786086, 786087, 786088, 786089 and 786090 dated 16.06.1996, 16.07.1996, 16.08.1996, 16.09.1996, 16.10.1996 respectively representing interest which was payable on this loan. Cheques dated 16.06.1996, 16.07.1996, 16.08.1996, 16.09.1996 were presented for payment on due dates and were honoured. However, when cheque dated 16.10.1996 was presented it was returned back with the remarks "Account Closed". The plaintiff intimated the defendant about the return of the unpaid cheque. However, the defendant did not give any response. Subsequently, the wife of the plaintiff No.2 wrote letter dated 23.07.1997 to the Police Authorities complaining about the aforesaid act of the defendant but no action was taken by the police. The plaintiff No.1 also approached one of the acquaintances of the defendant for prevailing upon the defendant to make payment of the aforesaid loan. Even this did not yield any result. The plaintiffs also tried to persuade the defendant to make payment by adopting various legitimate means. However, when it was realised that the defendant would not make the payment, the present suit was filed under Order XXXVII of the Code of Civil Procedure.

(2.) It is stated in the plaint that the defendant was liable to pay the interest of Rs.48,000/- up to 16.5.1997 and Rs.2,88,000/- from 16.5.1997 till the date of filing of the suit. In this manner the plaintiff is claiming a decree in the sum of Rs.7,36,000/- in his favour.

(3.) The defendant has contested the suit on receiving summons for Judgment. IA.2586/2001 has been filed by the defendant seeking leave to defend the suit. The plaintiff has filed reply thereto to which the defendant has filed rejoinder. Arguments were heard at length on this application which is subject matter of the present order.