S VENKATARAMI REDDY Vs. MANCHIRAJU SUBBA RAO

JUDGEMENT

(1.) This appeal is preferred by the plaintiff against the judgment and decree dated 21-06-1985 in O.S.No.44 of 1983 on the file of Subordinate Judge, Kandukur, wherein the suit filed by the plaintiff for recovery of Rs. 37,779.50 ps. with interest basing on the promissory note dated 14-08-1980 was partly decreed for a sum of Rs. 11,189.24 ps. by giving benefit under Act IV of 1938 with future interest at 6% per annum.

(2.) The case of the plaintiff is that all the defendants borrowed a sum of Rs.24,500.00on 14-08-1980 from the plaintiff and executed the promissory note on the same day for valid consideration agreeing to repay the same with interest at 18% per annum on demand and inspite of repeated demands made by the plaintiff the defendants have not paid any amount and, therefore, he has got issued a notice dated 26-07-1983-Ex.A2 and the defendants who received the same sent a reply with false and untenable allegations. Therefore, the suit is filed to recover the suit claim with costs and subsequent interest.

(3.) The second defendant filed written statement which was adopted by defendants 1 and 2. It is admitted that the defendants have executed promissory note on 24-08-1980 in favour of the plaintiff but the amount of Rs. 24,5007- was denied. The suit promissory note came into existence on the existing debts of Rs.2,000.00 on 9-9-1971, Rs.2,400.00 on 12-09-1971 and Rs.1,000.00 on 20-09-1971 from the mother of the plaintiff and executed the three promissory notes on the respective dates agreeing to pay the same with interest at the rate of 24% per annum. Since the said debts were time barred the plaintiff approached defendant No.2 and demanded for payment of entire amount due and proposed that all the defendants should execute a fresh promissory note for the amount due with interest at 24% per annum as calculated. The suit promissory note is a renewal of the earlier three promissory notes and, therefore, no such consideration of Rs.24,500.00 was paid. The defendants have also referred several other debts and the suits filed against them to show that they are indebted to various other persons.