SUDHIR JAIN Vs. SARLA MITTAL

JUDGEMENT

(1.) The plaintiff, who is of Indian origin but resident of US, has filed this suit through his authorized representative Mr. Ashu Jain, for recovery of Rs.11,50,00,000.00 along with interest under Order XXXVII of Code of Civil Procedure (hereinafter referred to as 'CPC, 1908').

(2.) The case of the plaintiff is that the defendant Nos. 1and 2 were known to the plaintiff through a common friend/relative. In or around July 2006, the defendant No.2 Sh. R.P. Mittal requested for a short-term loan on his behalf and his wife Defendant No.1/Smt. Sarla Mittal ostensibly on their serious personal financial difficulty as they were unable to repay the bank loan and had risk of losing their assets. On their request of financial accommodation for 90 days, plaintiff agreed to give a loan of Rs.5,00,00,000.00 with the agreed rate of interest @ 13% p.a. The amount of Rs.5,00,00,000.00 was given to the defendant in installments between the period of July 2006 to October 2006 subject to loan transaction and its term being documented and evidenced by a Loan Agreement.

(3.) The plaintiff accordingly paid the said principal loan amount of Rs.5,00,00,000.00 to the borrowing defendant through Demand Drafts/Pay Orders made from his NRE Account No. 093010100167123 with the Axis Bank, New Delhi. The Loan Agreement was formally executed between the plaintiff and the borrowing defendant on 30/10/2006.