A PALANISAMY Vs. M KUPPUSAMY

JUDGEMENT

(1.) -THE unsuccessful plaintiff in the Trial Court is the appellant herein.

(2.) THE case of the plaintiff is as follows : on 28. 9. 1979 at Erode Town the defendant borrowed Rs. 40,000/- from the plaintiff for the development of his business as hand loan and promised to repay the sum within short time. The defendant in lieu of the discharge of the said loan, issued 2 account payee cheques for rs. 25,000/- dated 30. 4. 1982 drawn on Canara Bank, New Delhi and for rs. 15,000/- dated 31. 7. 1982 on the same Bank respectively to the plaintiff.

(3.) THE first cheque was presented for encashment through Canara bank, collection and it was dishonoured. After the issue of the second cheque the defendant informed the plaintiff not to present the second cheque to the Bank for collection as the intended to settle the amount due, under the hand loan, in person. As promised the defendant did not settle the account on the hand loan. By issue of two cheques the defendant has acknowledged his liability under the hand loan. In spite of several demands the defendant did not pay the amount and hence the plaintiff filed this suit for recovery of a sum of Rs. 40,000/- and interest thereon.