K. UDHAYAKUMAR Vs. RAMDHAS FINANCE PRIVATE LTD.

JUDGEMENT

(1.) THE defendant in the original suit is the appellant herein. The respondent herein filed the suit O.S.No.4882 of 2000 on the file of the trial court for recovery of a sum of Rs.72,240/ - being the principal amount of Rs.42,000/ - lent under the suit promissory note and the interest accrued up to the date of plaint, together with a further interest at the rate of 24% per annum compounded quarterly from the date of plaint till realization and also for costs.

(2.) THE suit was filed based on the plaint averment that on 01.08.1997, the appellant herein/defendant borrowed a sum of Rs.42,000/ - from the respondent herein/plaintiff and executed the suit promissory note agreeing to repay the said amount with interest at the rate of 24% per annum. The respondent herein/plaintiff had also filed a suit in C.S.No.419/1999 on the file of this court (High Court) against the mother -in -law of the appellant herein, the appellant herein and the wife of the appellant for the recovery of the amount due on a loan taken by the mother -in -law of the appellant herein on a hire purchase arrangement. Therein the appellant herein/defendant was sought to be made liable as a guarantor. The respondent herein/plaintiff has made a clear averment that both the transactions are distinct and separate and for the loan obtained under the suit promissory note, no amount was paid by the appellant herein/defendant till the date of filing of the suit.

(3.) BASED on the pleadings, the following issues were framed by the trial court: