RICHA AND CO. Vs. D. NIRMALA

JUDGEMENT

(1.) The plaintiff filed this suit for recovery of Rs. 38,31,250/ - along with pendente -lite and future interest.

(2.) The case of the plaintiff is that plaintiff deposited a sum of Rs.25 lac with the defendant as the defendant was facing shortage of funds for her business. This amount was given by way of three bank drafts dated 14th August 1996 (details of drafts given in paragraph 3 of the plaint). The plaintiff asked the defendant to refund this amount but despite several demands, the amount was not refunded hence this suit had been filed by the plaintiff after serving a demand notice dated 7th May 1999 claiming an amount of Rs. 25 lac with 18% interest. This suit was filed on 12th August 1999. The defendant was proceeded ex parte as defendant failed to appear. However, defendant later on moved an application under Order 9 Rule 7 CPC wherein defendant informed the Court that the defendant had after filing of the suit entered into an agreement with the plaintiff and paid back the amount of Rs. 25 lac vide DD No. 186717 dated 26th February 2000. This amount was accepted by the plaintiff as full and final settlement of his claim. The defendant gave details of the demand draft handed over to the plaintiff along with a covering letter. The plaintiff did not deny the receipt of this demand draft. Considering the circumstances, this Court set aside the ex parte order passed against the defendant. In the written statement defendant raised objection about jurisdiction of this Court and also submitted that by payment of Rs. 25 lac entire account of plaintiff stood settled.

(3.) Following issues were framed in this suit on 21st April 2006: