K.RAJENDRA KUMAR JAIN Vs. D.JAYANTHI

JUDGEMENT

(1.) The suit is filed for recovery of a sum of Rs.38,12,500.00 together with interest at the rate of 18% per annum from the date of plaint till the date of realiasation.

(2.) The brief facts of the case of the plaintiffs are as follows: The first defendant is the owner of the vacant land situate in Vayalur Village. The second defendant is her husband. In the month of June 1998, the defendants approached the plaintiff for financial assistance for construction of a Kalyana Mandapam in the said vacant land and agreed to give title deeds relating to the vacant land. Accordingly, the plaintiff has agreed to lend financial assistance. Since the defendants have handed over the title deeds, the plaintiff has advanced a sum of Rs.5,00,000.00 to the first defendant on 21/6/1998 and she has also executed a promissory note for the said amount agreeing to pay interest at the rate of 18% per annum. The second defendant stood as a guarantor for the due payment of the loan amount. Similarly, the defendants have borrowed an additional sum of Rs.5,00,000.00 each from the plaintiff on 20/6/1999 and 9/12/1999 on the strength of the title deeds already handed over to the plaintiff and agreed to pay interest at the rate of 18% on the amounts borrowed. Subsequently, on 20/12/2005 another sum of Rs.17,50,000.00 was borrowed by the defendants for furniture and fixtures required for the additional building of the kalyana mandapam. For the above amount also, the defendants have executed a demand promissory note and agreed to pay interest at the rate of 18% per annum. Besides, they have also deposited the title deeds. The defendants have made several part payments on several occasions commencing from 21/6/1998 to 20/11/2007. After giving credit to all the above payments for part payment of interest, remaining unpaid balance along with interest culminated periodically. Thereupon on 20/12/2007 accounts were reconciled and a settlement was arrived between the defendants and the plaintiff waived huge amount of interest in the above settlement. Pursuant to the said settlement, the defendants have agreed to pay Rs.25,00,000.00 towards full and final settlement and executed one demand promissory note in favour of the plaintiff and also handed over undated blank cheques to the plaintiff. They have agreed to pay the amount within 6 months. However, they have failed to pay the amount inspite of the request made by the plaintiff. Hence, the plaintiff issued a legal notice dtd. 20/1/2010. The cheque given by the first defendant was dishonoured and in this regard, notice was also issued on 12/8/2010 . Hence, the suit for recovery of a sum of Rs.38,12,500.00 along with interest.

(3.) Brief contentions of the written statement filed by the defendant : Denying the entire allegations in the plaint, it is the contention of the defendants that the first defendant has borrowed a sum of Rs.15,000.00 from the plaintiff on 20/7/1998 by mortgaging her property. Apart from the mortgage, the plaintiff has also taken the title deeds and blank cheques from the defendants. That apart, the first defendant was regularly paying the monthly interest. Even then the plaintiff has sought for an additional amount for closing the account. The first defendant being a lady and having subjected her name in the mortgage transaction, she had pay a sum of Rs.3,00,000.00 as per the unreasonable demand of the plaintiff during the year 2001 and closed down the loan transaction. However, the plaintiff had sought time for cancelling the registered mortgage deed and to return the cheques. However, the plaintiff has not come forward to cancel the mortgage deed. When the matter stood thus, in the month of January 2010, the plaintiff issued a notice claiming huge sum of Rs.34,37,500.00. Immediately, the second defendant met the plaintiff with regard to the notice and questioned about the legal notice. The plaintiff has informed that the same is issued only for some income tax accounting purpose. Thereafter, the plaintiff has also filled a unfilled bank cheque issued by the second defendant for a sum of Rs.36,62,500.00 and presented it before the bank for collection and sent a legal notice dtd. 12/8/2010. The allegation that they have borrowed Rs.15,00,000.00 on various dates and 17,50,000/- on 20/12/2005 is denied by the defendants. It is also denied by the defendants that there was a settlement in which they have agreed to pay Rs.25,00,000.00 towards full satisfaction of the loan amount and executed a fresh promissory note. It is the contention of the defendants that they never executed the suit promissory note as alleged by the plaintiff. Hence prayed for dismissal of the suit.