R K CHAKRAVARTHY Vs. S SHANTHARAJ

JUDGEMENT

(1.) THE order of the IV Judge, Court of Small Causes, Madras under Or. 37, R. 2 of the Presidency Small Causes Court Act, 1882, imposing a condition of a cash deposit, while granting leave to defend the suit, is challenged by the second defendant/petitioner in this revision petition.

(2.) FACTS briefly are: The respondent filed Suit No. 1633 of 1986 before the Court of Small Causes, Madras against the petitioner and another for recovery of a sum of Rs. 1,360 and future interest, due on a promissery note, jointly executed by the petitioner and the codefendant in favour of the respondent on 23. 6. 1983 for a sum of Rs. 1,000. On receipt of summons, the petitioner filed M. P. No. 747 of 1986 under Or. 37, R. 2 of the presidency Small Causes Court Act, 1882 seeking leave to defend the suit, on the ground that the promissory note had been discharged by him, by periodical payments to the respondent through cheques drawn on the State Bank of India, madras-2 and also on the ground that no interest was stipulated in the promissory note, while, in the suit claim included interest.

(3.) FOR contra, Thiru F. Mahabeebjan, learned counsel for the respondent, contended that even under the Negotiable Instruments Act interest was payable and that, therefore, the respondent was justified in claiming interest.