V LAKSHMI NARAYANAN Vs. S VEERAMATHI

JUDGEMENT

(1.) The revision petitions are directed against the orders refusing to grant leave to defend the plaintiff's claim under Order XXXVII Rule 5 of the Code of Civil Procedure by the defendant.

(2.) The suits are filed by the plaintiff for recovery of a sum of Rs.21,50,000/- (Rupees twenty one lakhs and fifty thousand only) with interest. The case of the defendant is that he is the cooking contractor, doing his business in the name and style of Nala Bogam for several years and as part time business, he is also doing chit transaction. The plaintiff joined the chit amount of Rs.2,25,000/-, for a period of twenty months. However, he was not regular in paying the chit amount. Even the first installment was not paid and the same was paid only after four months, that too, the amount due for two months chit. The plaintiff himself requested the defendant to discontinue him from the chit, as he was having a heavy loss in his jewelery business and wanted to return the amount, which was already paid. Accordingly, the defendant had issued two cheques to the plaintiff as security till such time he pays the amount received from the plaintiff. Even after settling the payment by cash, the plaintiff did not return the cheques with malafide intention and also presented the cheques in the bank, which were dishonored. The plaintiff also had issued a legal notice dated 04.03.2015 under Section 138 of the Negotiable Instruments Act and a reply notice was also sent by the defendant on 18.03.2015. But it was returned with an endorsement 'not claimed'. In the reply itself, it has been explained about the said facts. Though it is stated that the proceedings has been initiated under Section 138 of the N.I. Act, the defendant has not yet received any notice. As the defendant has a good case on merits under triable issue, leave to defend the plaintiff's claim was sought for.

(3.) The said applications were opposed by the plaintiff. The learned trial Judge dismissed the same not accepting the case of the defendant. Aggrieved by the same, the above revisions have been preferred.