RACHAPUDI VENKATA SUBBA RAO Vs. LINGINENI LAKSHMIAH CHOWDARY

JUDGEMENT

(1.) This is a plaintiffs appeal against the dismissal of his suit for recovery of money lent on a promissory note supported by a mortgage by deposit of title-deeds and for sale of the mortgaged property.

(2.) The case of the plaintiff is that the defendants 1 to 3 the respondents 1 to 3, herein, executed a promissory note (Ex. A-1) on 2-10-1967 in his favour and borrowed a sum of Rs. 60,000.00 which was paid by way of cheque drawn in favour of the 1st defendant on the State Bank of India, Guntur, and that they promised to repay the amount jointly and severally together with interest thereon at 12% per annum with yearly rests. As security for the money borrowed, the defendants 1 to 3 deposited with the plaintiff title-deeds in respect of certain immovable properties situated in Hyderabad and Bangalore. They also executed a letter dated 4-10-1967 (Ext. A-2) giving the particulars of the documents of title deposited with the plaintiff and stating that the documents were deposited towards the monies borrowed under the promissory note on 2-10-1967. It is the further case of the plaintiff that the 2nd defendant made a payment that the 2nd defendant made a payment of Rs.17,080.00 on 2-12-1968; and another sum of Rs.3,000.00 on 5-12-1968. While making the payment of Rs.17,080.00 the 2nd defendant claimed by his letter dated 2-12-1968 (Ex. A-3) that he was paying the said amount towards his share of the money borrowed; but the plaintiff sent a reply on 4-12-1968 (Ex A-4) that all the defendants were jointly and severally liable and that the question of adjusting the amount paid towards the share of the liability of the 2nd defendant did not arise. As the defendants failed to pay the balance of the amount, the plaintiff filed the suit for recovery of the same with interest at 12% per annum with yearly rests. The suit amount came to Rs.58,195.55 P. as on 15-7-1970.

(3.) The suit was contested only by the defendants 1 and 2 and the 3rd defendant remained ex parte.