VELAPPAN Vs. VARGHESE

JUDGEMENT

(1.) Plaintiff's suit for recovery of the amount due under Ext. A3 promissory note dated 27-9-1971, with incidental reliefs, having been decreed as prayed for, the defeated defendant has come up in appeal.

(2.) The substance of the plaint allegations is that the appellant defendant had borrowed from the plaintiff a sum of Rs 15,000/- for his contract work, executing in his own hand Ext. A3 promissory note promising to pay the amount with 6 per cent interest thereon on demand; a payment of Rs. l,000/-made on 20-9-1974 was endorsed on the promissory note by the defendant in his own hand; no other payment was received towards the promissory amount; to the suit notice dated 7-4-1975, a true copy of which is Ext. A2, the defendant had sent Ext. Al reply dated 22-4-1975 denying his liability, and putting forward false contentions; hence the suit became necessary.

(3.) The defendant, in his written statement, while admitting the execution of the promissory note, denied to have received any consideration from the plaintiff or having had any dealings with him; according to him a sum of Rs. 10,000/- was advanced to him by one C. L. Varghese (Dw. 2) and it was at his behest that he happened to execute a promissory note for Rs. 15,000/- in favour of the plaintiff. His further case is that the said C. L. Varghese (Dw. 2) was having black money and he used to do money lending business, charging interest at 36 percent, and it was to avoid the disclosure of his having amassed wealth in that way, and to avoid Income Tax that he conceived the idea of making him execute the promissory note ia favour of the plaintiff, instead of getting it executed in his own name. He also pleaded that the promissory note stood discharged by his having made the payments due thereunder to the said C. L. Varghese (Dw. 2).