HARBANS SINGH Vs. FIRM SUNDER MAL SAT PAL

JUDGEMENT

(1.) This is defendant's appeal against the judgment and decree dated April 27, 1979 whereby suit of the plaintiff for recovery of Rs. 27,000/- has been decreed.

(2.) The plaintiff filed a suit for recovery of Rs. 33500/- on the basis of pronote and receipt dated 4.2.1975. According to the plaintiff, defendant agreed to pay interest at the rate of 1.56% per mensum. It was further agreed that the defendant would repay the loan amount along with interest on demand. According to plaintiff, defendant had dealings with the plaintiff firm and had been receiving certain amount on credit as and when required by him. It is on 19.4.1977 that the defendant settled accounts with the plaintiff firm and admitted his liability to pay a sum of Rs. 27,000/- which included interest of Rs. 7000/- to the plaintiff firm.

(3.) The defendant contested the suit taking up various pleas like plaintiff firm carrying on business of money lending but having not been registered under the Indian Partnership Act and the suit being not within limitation. On merit, it was denied that the defendant executed a pronote on 4.2.1975 as alleged by the plaintiff.