D.SRIDHAR Vs. G.VENKATESAN

JUDGEMENT

(1.) The appeal suit is filed against the judgment and decree dated 04.07.2017 passed in O.S.No.136 of 2014.

(2.) The defendants are the appellants before this Court and the respondents instituted a suit for recovery of money based on the Promissory Note executed by the defendants.

(3.) The facts in nutshell placed before this Court is that the defendants borrowed a sum of Rs.10,00,000/- on 10.01.2012 and executed a Promissory Note in favour of Mr.Prabakaran, son of Mr.Sivabhushanam(Ex.A1). The said Mr.Prabhakaran had assigned the suit promissory note in favour of the plaintiff Mr.G.Venkatesan(Ex.A2) for consideration on 01.10.2014. The plaintiff is the bonafide holder in due course of the suit promissory note for consideration. The assignment is endorsed on the back of the suit promissory note and the same was treated as part and parcel of the document and plaint. The plaintiff had been demanding the defendants to repay the loan amount along with the interest and the defendants had not repaid the amount and consequently, the plaintiff was constrained to institute the suit for recovery of money. The defendants filed a written statement, denying the contentions by stating that the defendants were not even seen Mr.Prabakaran, the assigner of the plaintiff and they have not executed any promissory note in favour of Mr.Prabakaran. The defendants have stated that they had money transactions with Mr.Sivabooshanam of Nellikuppam, who is the father of Mr.Prabakaran. In February 2012, the 1st defendant borrowed a sum of Rs.25,00,000/- from Sivabooshanam and the said creditor had taken four promissory notes for Rs.10,00,000/- each. The 1st defendant had been paying Rs.50,000/- every month towards interest till May 2014, despite the fact that the interest was fixed at 24% per annum, which is exorbitant. The defendants denied the other averments and regarding the quantum of loan borrowed. The trial Court tried the suit by framing the issues as to Whether the suit promissory note has been executed by the defendants in favour of one S.Prabakaran, son of Sivabooshnam; Whether the said S.Prabakaran had assigned the promissory note in favour of the plaintiff; Whether the plaintiff is bonafide holder in due course of suit promissory note for consideration and Whether the plaintiff is entitled to get the suit amount from the defendants.