CITY THEATRES PVT LTD Vs. SURESHKUMAR G NICHANI

JUDGEMENT

(1.) THE first and third defendants in the suit have preferred this appeal challenging the judgment and decree of the Court below dated 28.02.1994 made in O.S.No.8986 of 1991 on the file of the III Assistant Judge, City Civil Court, Madras.

(2.) IT is the case of the plaintiff before the Court below that on 17.08.1985, the defendants 1 to 4 borrowed a sum of Rs.30,000/- from him for their business and executed a promissory note for Rs.30,000/- in his favour, promising to repay the same on demand together with interest at 24% per annum and in respect of the same, the defendants paid interest up to 16.03.1986 and thereafter when demands were made by him for repayment of principal and interest, the defendants failed and neglected to comply with the same; thereafter, the plaintiff caused a legal notice dated 02.08.1988 to the defendants calling upon them jointly and severally to pay the amounts to him; the defendants acknowledged the receipt of the legal notice and requested the plaintiff not to take any further legal action against them. The plaintiff further stated that the first defendant company issued a cheque dated 09.02.1989 for Rs.30,000/- in his favour towards repayment of the principal due under the said promissory note, however, the cheque was returned with an endorsement "payment stopped by the drawer".

(3.) THE Trial Court, on consideration of the entire facts and on analysis of the material records decreed the suit in favour of the plaintiff with a direction to the defendants to pay a sum of Rs.65,903/- to the plaintiff together with interest at the rate of 24% per annum from the date of filing of the suit till the date of realization. Aggrieved by the said judgment and decree of the Trial Court, the defendants 1 and 3 have come on appeal before this Court.