ASHOK KUMAR DASANI Vs. SUDHA AGARWAL

JUDGEMENT

(1.) ON or about 27th January, 1998, the plaintiff instituted the above suit claiming as follows: -

(2.) THE above suit was instituted mainly on the allegations that in the second week of September 1994 the plaintiff at the request of the 2nd defendant, Prabhu Shankar Agarwal, agreed to lend and advance a sum of Rs. 10,00,000/- to his wife, namely, the 1st defendant herein, Sudha agarwal, on certain terms and conditions which according to the plaintiff, would be borne out from the course of conduct and correspondences exchanged by and between the parties. The terms and conditions were - (I) that "the plaintiff would lend and advance a sum of Rs. 10, 00,000/- to the defendant No. 1", (II) that "the interest shall be paid @ 24% per annum" and (III) that "the defendant shall repay the said sum of Rs. 10,00,000/-along with accrued interest thereon, on or before 10th October, 1994"

(3.) THE case of the plaintiff as made out in the plaint proceeds on the basis that the 2nd defendant represented to the plaintiff that the above loan was required for the business of the 1st defendant and the 2nd defendant promised that in the event of any default by the 1st defendant in repayment of the above loan the 2nd defendant would repay the same. The plaintiff believed such representation of the 2nd defendant and lent the said sum of Rs. 10,00,000/- by issuing two account payee cheques in favour of the 1st defendant of Rs. 5,00,000/- each drawn on Vijaya Bank dated 20th September, 1994 and 21st September, 1994 respectively.