C. ANDIAPPAN Vs. M. ARDHANARI (DECEASED)

JUDGEMENT

(1.) The defendant in O.S.No.336 of 1993, is on appeal, challenging the preliminary decree for payment of a sum of Rs. 2,25,000/- with interest at 12% per annum from the date of the suit till the date of payment.

(2.) The suit was filed by the plaintiffs, contending that the plaintiffs had certain financial transactions with the defendant and in order to settle the dispute, it was agreed that the plaintiffs should pay a sum of Rs. 1,83,000/- in full quit of the amount payable by them to the defendant. It was also agreed that in discharge of a sum of Rs. 1,83,000/-, the plaintiffs should execute a sale deed in respect of their property situated at Netaji Road, Erode.

(3.) It is the further contention of the plaintiffs that the said property was worth about Rs. 4,08,000/- and in order to avoid the huge expenditure on stamp duty, the sale deed was registered for a sum of Rs. 1,83,000/-. For the balance Rs. 2,25,000/-, the defendant had executed a promissory note on 26.03.1990, i.e., the date on which the sale deed was executed and presented for registration. It is also the contention of the plaintiffs that the sale deed dated 26.03.1990, was handed over to them by the defendant with an intention of creating mortgage in respect of the suit property as security of payment of Rs. 2,25,000/- which was covered by the promissory note.