THOKCHOM SUREN SINGH Vs. LAISHRAM PRIYOKUMAR SINGH

JUDGEMENT

(1.) THIS appeal arises out of the judgment and decree dated 31.3.2011 passed by the learned Civil Judge, Sr. Divn, Manipur West in Original (Money) Suit No.6 of 2009. The respondent was the plaintiff in the suit.

(2.) THE case of the plaintiff -respondent is that he and the appellant are childhood friends and residents of the same locality. On 20.3.2007, the defendant -appellant, for the purpose of his business, requested the plaintiff -respondent for a loan of Rs.1,60,000/ -(Rupees One Lakh Sixty Thousand)only on condition that the said amount shall be paid back within one year with interest @ 4% per month. In the event of failure to pay the amount, the plaintiff -respondent shall be entitled to recover the principal and interest by selling the properties of the defendant -appellant. In this regard, an Agreement was drawn up in writing in presence of the witnesses. In accordance with the agreement, the defendant - appellant started paying a sum of Rs.6,400/ - towards interest every month till Sept/2007. Thereafter, he stopped paying the monthly interest and in spite of repeated requests, the defendant - appellant neither returned principal amount of Rs.1,60,000/ - nor the interest accrued after Sept/2007. Finding no other way, the plaintiff -respondent submitted a complaint before the Officer in - Charge, Thoubal Police Station and a case was registered for commission of offence u/s 420/406/506/34 of I.P.C. However, before any action could be taken, the defendant obtained anticipatory bail. When the plaintiff found that there is no other way to recover of the money, he filed the suit for recovery of the sum of Rs.3,20,000/ -(Three Lakh Twenty Thousand) towards principal of Rs.1,60,000/ - and interest of Rs.1,60,000.

(3.) THE plaintiff -respondent examined three witnesses including himself whereas the defendant -appellant examined himself as the sole witness. The agreement dated 20.3.2007 was exhibited as Ext -A/2. The learned Civil Judge accepted the case of the plaintiff that an agreement had been executed between the plaintiff -respondent and the defendant -appellant on 20.3.2007 wherein the defendant -appellant acknowledged receipt of Rs.1,60,000/ - from the plaintiff -respondent on condition that he would pay back the money with interest @ 4% per month. Referring to the oral evidence adduced, the learned Civil Judge held that the defendant -appellant had failed to pay any amount out of the principal and also failed to pay interest after Sept/2007. Accordingly, with the above finding, the learned Civil Judge passed the decree for recovery of Rs.3,20,000/ - from the defendant - appellant and further directed that on failure on the part of the defendant -appellant to pay the decretal amount, he would be liable to pay interest @6% per annum.