SHREEJI INVESTMENTS Vs. VIRENDRA JAVERI

JUDGEMENT

(1.) The plaintiffs have filed this suit against the defendant for a decree in the sum of Rs.11,62,500/- together with interest thereon at 21% per annum from the date of the filing of the suit till actual payment.

(2.) The case of the plaintiffs is that they carry on the business of investments and finance. They are not money lenders within the meaning of the provisions of the Money Lenders Act, 1946 ("the said Act" for short). According to the plaintiffs, the transaction between them and the defendant, who deals in jewelleries is not covered by the provisions of the said Act.

(3.) The plaintiffs contend that at the request of the defendant, the plaintiffs lent and advanced to the defendant a loan of Rs.10 lakhs by their cheque No. 447563 dated 1/2/2000 drawn on Citizen Co-operative Bank Ltd. Mumbai for a period of three months with interest @ 30% per annum payable in advance. The said cheque was credited to the account of the defendant on 2/2/2000. The defendant gave to the plaintiffs a cheque for Rs.75,000/- bearing No. 18309 drawn on United India Bank, Peddar Road Branch being the advance interest for three months i.e. February, March and April, 2000 and the same was duly realised by the plaintiffs.