P S ARUNACHALAM Vs. SAKTHI FINANCE LIMITED

JUDGEMENT

(1.) Aggrieved over the judgment of the learned Subordinate Judge, Udumalpet, the first defendant in a suit for recovery of money has brought forth this second appeal.

(2.) It was a suit for recovery of a sum of Rs.11,210/- with subsequent interest at 10% per annum till the time of realisation, alleging that the first respondent/plaintiff, a finance company at Pollachi, on the application of the proposal for lease finance by the first defendant dated 3.10.1985 under Ex.A1 and on undertaking to repay the lease amount with interest at the rate of 14% per annum and as per the terms and conditions mentioned in the lease agreement Ex.A2, granted an advance amount of Rs.8,500/- under a lease account for the purchase and lease of the equipment of one BPL colour television set; that the first defendant was a lessee, while the second defendant was a guarantor for the above said finance amount and the lease of the equipment as per the agreement entered into between the parties under Ex.A2; that the TV was also delivered under Ex.A12 delivery note; that the defendants undertook to pay the lease amount with interest in not less than 24 instalments; but, they defaulted in making the payment, and thus, there was a balance of Rs.7,022/- towards the monthly instalment dues as well as the additional finance charges, as agreed between the parties, amounting to Rs.1,846/- and a transfer fee of Rs.100/-, in all totalling to Rs.8,968/-; and that the defendants were liable to pay the same along with interest.

(3.) The second defendant was absent and was set ex-parte by the trial Court. The suit was resisted by the first defendant stating that he had applied to the plaintiff for the purchase of a colour T.V. set and signed the agreement for the same; but the agreement was subsequently cancelled by him; that the TV set was not delivered to him, and thus, he was not liable to answer the plaintiff's claim.