S MADHAN Vs. K SACHEEDRANADH REDDY

JUDGEMENT

(1.) This suit has been filed under Order XXXVII Rule 1 of O.S. Rules read with Order VII Rule 1 of C.P.C. for a direction against the defendant to pay a sum of Rs.15,00,000/- towards principal and Rs.20,90,000/- towards interest totalling Rs. 35,90,000/- and further interest at 24% p.a. on Rs.15,00,000/- from date of plaint till date of realization and in failure for a direction for sale of the schedule mentioned property and for a personal decree against the defendant in case the sale proceeds falls short of the amount due and for cost.

(2.) In the plaint, it has been stated that the defendant approached the plaintiff for a loan of Rs.5,00,000/- on 05.08.2000 and agreed to repay the same at the rate 24% p.a. and created equitable mortgage of the Flat bearing Door No.2, Krishna Vihar Apartments, Ground Floor, No.132, 7th Main Road, Anna Nagar East, Chennai 600 040. Again on 09.01.2004, the plaintiff advanced a further sum of Rs.10,00,000/- together with interest at 24% p.a. on the request of the defendant. It was agreed that the interest shall be payable on or before 10th of every succeeding English calendar month. Equitable Mortgage was created by deposit of original title deed. The defendant agreed to repay the loan on or before 30.06.2004. A mortgage deed was also executed in this regard. The plaintiff demanded repayment of the money.

(3.) On 30.06.2004 the defendant acknowledging the loan amount executed promissory note for Rs.15,00,000/- undertaking to repay the same at 24% p.a. A cheque bearing No.129466 for Rs.15,00,000/- dated 06.08.2004 drawn on ABN Amro Bank, Haddows Road, Chennai 600 006 was also issued by the defendant. When it was presented for collection, it was returned with an endorsement "account closed". The plaintiff had filed C.C.No.27315 of 2004 on the file of V M.M. Court, Egmore, u/s. 138 N.I.Act, which is now pending before the IX M.M.Court, Saidapet. According to the statement of accounts, a outstanding balance of Rs.35,90,000/- is payable by defendant. The particulars of the mortgage had been given in the plaint which has been filed according to Form 84 of the Original Side Rules. Claiming that the defendant is due and liable to pay the sum as mentioned in the plaint, this suit has been filed.