ARUMUGAM Vs. M S NARASAIAH

JUDGEMENT

(1.) The Second Appeal No. 1242 of 1993 has been preferred by the unsuccessful plaintiff for recovery of Rs. 23,100/- on a promissory note dated 5-2-1982 for a sum of Rs. 13,750/-.

(2.) The plaintiff's case is that the defendant executed promissory note on 5-2-1982 after receipt of Rs. 13,750/- and agreeing to pay interest at 24% per annum. A sum of Rs. 23,100/- was claimed for interest and principal.

(3.) The defendant denied the execution of the promissory note. According to the defendant on 5-2-1980 the plaintiff approached him to purchase buffalo for Rs. 3000/-. The defendant refused to purchase the same as the buffalo was not healthy and not in good condition. The plaintiff promised to substitute it with a new one in case of the death of the buffalo or in case it falls seriously ill. Further the plaintiff also promised to desist from claiming a sum of Rs. 3000/- in such case. Further he took the signature of the defendant in blank papers as security. Believing the plaintiff, the defendant signed the blank paper and took the buffalo. But the buffalo died shortly. When the defendant demanded return of the sum, the plaintiff filled up the blank papers and created promissory note for Rs. 13750/-. The said promissory note is time barred and the defendant is not liable to pay any amount.