(1.) 1. By this judgment, I propose to decide LA. No. 470/2005 filed by the defendants under the provisions of Order 37 Rule 3(5) of the Code of Civil Procedure, 1908 seeking leave to defend the present suit. In order to appreciate the issues raised in the application, it becomes necessary to notice certain essential facts.
(2.) Rashtriya Mahila Kosh, the plaintiff herein is a society registered under the Society Registration Act carrying on its activities under the directions of the Department of Women and Child Development of the Ministry of Human Resources Development, Government of India having its office at 1, Abul Fazal Road, Bengali Market, New Delhi-110001. Amongst the other activities of the plaintiff, it is contended that the plaintiff is engaged in advancing loans to the poor women through Non Governmental Organisations (NGOs). .
(3.) The defendant No. 1 is a registered co-operative society located in Thiruvananthapuram in the State of Kerala. It is stated to have approached the plaintiff in the year 1994 through its Director, Mr. C. Christu Das, defendant No. 2 herein for a loan in the main loan scheme. Between the period from 21st March, 1994 and 14th March, 1997, vide three sanction letters dated 21st March, 1994,30th September, 1994 and 14th March, 1997, the plaintiff sanctioned loan for a total sum of Rs. 58,42,730/- to the defendant No. 1 under the Main Loan Scheme. Towards these sanctions, the defendant No. 1 executed various documents including Memorandum of Agreements, Demand Pronotes etc. from time to time and agreed to be bound by the terms and conditions of the agreement and the sanction letters.