K M SURYA Vs. L JAYA RAMA REDDY

JUDGEMENT

(1.) THIS appeal suit is filed against the judgment and decree in OS No.5 of 1999 dated 27.6.2005 passed by the learned V Additional District Judge, Tirupati.

(2.) APPELLANT is defendant and respondent is plaintiff.

(3.) THE case of the plaintiff is that defendant borrowed a sum of Rs.6,00,000/- from him on 1.3.1996 for his business purpose and executed a letter dated 14.3.1996 acknowledging the debt and promising to repay the same with interest at 18% per annum. Again on 29.3.1996, defendant borrowed a sum of Rs.22,386/- from the plaintiff as per the running account maintained by him (plaintiff) in the regular course and acknowledging the same issued a receipt on 30.3.1996. Further, defendant borrowed a sum of Rs.1,67,614/- vide Cheque Bearing No.520623 of plaintiff's Account Bearing No.7887 of Bank of Baroda, Tirupati and encashed the cheque as per the entries in the Savings Bank Account of the plaintiff. While so, when the plaintiff demanded the defendant to repay the debts taken from him, he postponed the same on one pretext or the other and seeing the hostile attitude of the defendant to avoid the liability, he got issued a legal notice dated 16.2.1999 and the defendant in spite of receipt of the same, neither repaid the debts nor issued reply. THErefore, the plaintiff filed the Suit for recovery of a sum of Rs.13,59,751/- with future interest at 24% per annum. It is also averred that plaintiff restricted his claim for interest at 24% per annum though the defendant agreed to repay the amount of Rs.6,00,000/- with interest at 18% per month and that the defendant is not an agriculturist, as such, he is liable to pay interest as agreed upon.