RAMESH RANI Vs. HARSH MALHOTRA

JUDGEMENT

(1.) The short question that arises for consideration is, in regard to the scope of jurisdiction exercisable by the learned trial Court while granting additional leave to the defendant in a suit under Order 37 of the Code of Civil Procedure.

(2.) The relevant facts are that the plaintiff filed a suit for recovery of Rs. 69,158/- against the defendants. It was stated that the money had been lent to the defendant No. 1 and the payment was made by cheques amounting to Rs. 35,000/- and Rs. 5,000/- dated 25.11.1995, drawn on State Bank of Patiala. Defendant No. 2 and 3 had stood guarantor for defendant No. 1 for repayment of the said loan with interest at the rate of 17% per annum, as agreed. Documents for the grant of loan were executed.

(3.) The defendants upon putting in appearance filed an application in accordance with the provisions of Order 37 of the Code of Civil Procedure for leave to defend, the defendants claimed that they had not executed the document and had not taken the loan, as stated by the plaintiff. According to the defendants, the documents were forged and fabricated one and the rate of interest was stated to be, in any case, exorbitant and not recoverable.