PULLAMBOTIA KASTURIBAYAMMA Vs. RAMESH V PAREKH

JUDGEMENT

(1.) This is a defendant's appeal against the decree and Judgment in O.S.No.397 of 1986 on the file of the learned llnd Additional Subordinate Judge, Vijayawada, dated 02-07-1991, decreeing the suit against her for Rs.32,000/- with subsequent interest and costs.

(2.) It is the case of the plaintiff that the defendant borrowed a sum of Rs.10,000/- on 28-09-1983 and another sum of Rs. 10,000/- on 19-03-1984 from one M.N.Shaw of Viziawada for construction of Sharma Market near Samarangam Chowk and executed Exs.A-1 and A-3-two promissory notes, respectively. The defendant agreed to pay interest at 4.50% per month. The loans were arranged at the request of power of attorney of the defendant. Since M.N.Shaw requested the plaintiff to collect the amounts and therefore made endorsement of collection on the said pronotes vide endorsements, respectively, on 09-06-1986, whereupon the plaintiff got issued notice under Ex.A-3 claiming the amount, for which defendant gave a reply in Ex.A-4. Since the amount was not paid, he filed the suit.

(3.) The defendant's general power of attorney resisted the suit on the ground that the amounts covered undertwo pronotes were discharged. No amount need be paid under the said pronotes. At the time of borrowal, M.N.Shaw specifically stated thatthe amount was unaccounted and he would not pass any receipt for payments. In view of the understandings, he did not insistfor receipts. M.N.Shaw evaded to return pronotes even after, the amounts were paid. The transfer endorsements are not enforceable in view of the settlement between them. He was made to pay Rs.4,000/- to the Advocate under four receipts. M.N.Shaw promised to withdrawthe suit. But colluding with the plaintiff in order to cause loss to him, filed the suit. The rate of interest claimed is highly excessive and therefore, prayed for dismissal of suit with costs.