JAGMOHAN BEHL Vs. COL KS GUPTA & ANR

JUDGEMENT

(1.) In this appeal preferred against the judgment dated 12th October, 2010 the Appellant/Defendant (hereinafter "Defendant") challenges the decree passed by the Trial Court in favour of the Plaintiffs decreeing the suit for recovery in the following terms.

(2.) The suit for recovery was filed by the Respondents/Plaintiffs (hereinafter "Plaintiffs") Colonel Retired K.S. Gupta and his wife Smt. Sharda Gupta for a sum of Rs.14,27,000/- against the Defendant. It is the case of the Plaintiffs that the Defendant was an exporter of garments with a garment factory located in Kotla, New Delhi. He had approached the Plaintiffs for a loan for supporting his business, accordingly, the Plaintiffs had given a loan of Rs.7,50,000/- to the Defendant between the period of 1st August, 1989 to 1st November, 1989 to be paid back with interest @ 12% per annum which was to be split in four instalments in a year payable on quarterly basis. Thus, the Defendant had to pay 12% interest on Rs.7,50,000/- i.e. Rs.90,000/- per annum in four equal instalments after each quarter. The amount of Rs.7,50,000/- was given on the following dates. <FRM>JUDGEMENT_98_LAWS(DLH)7_2018_1.html</FRM> <FRM>JUDGEMENT_98_LAWS(DLH)7_2018_1.html</FRM>

(3.) According to the Plaintiffs, the Defendant used to pay the interest on the loan mainly in cash though on two occasions two cheques dated 7th August, 1990 were issued for some part of the interest. Apart from these two cheque payments, till 31st December, 1992, the entire interest amount was paid in cash. Apart from the said amounts, various other amounts of interests were paid in cash between 25th February, 1995 to November, 2001. Though these amounts were paid in cash, a large amount of interest remained outstanding. Despite several reminders the principal amount and the remainder of the interest amount was not being paid. Accordingly, the Plaintiff got notice dated 9th September, 2002 issued to the Defendant. No response was received to the said notice. The Plaintiff then filed the present suit under Order XXXVII CPC.