LALCHAND JAIN Vs. GHEESI

JUDGEMENT

(1.) This appeal is directed against the judgment and decree dated 1st June, 1996 passed by learned District Judge, Jalore in Civil Suit No. 11/94 under Order 37, Civil Procedure Code.

(2.) To appreciate the argument advanced by the learned counsel for the parties, the necessary facts may be stated briefly as under :- Respondent Smt. Gheesi wife of Sukhram Mahajan, resident of Ahore brought a civil suit under Order 37, C. P. C. for realisation of Rs. 2,67,960/- (principal amount Rs. 1,74,000/- + interest Rs. 93,960/-) in the Court of District Judge, Jalore stating in the plaint that the appellant-Lalchand is the friend of her husband, who needed money for expanding his business. He requested her on 14-10-91 at Ahore to advance Rs. 1,74,000/- to him. On account of his acquaintance and friendship with her husband, she agreed to give a loan of Rs. 1,74,000/- to the appellant and the amount was paid to him by a bank draft payable to M/s. Lalchand and Company. The bank draft issued by State Bank of India, Ahore was given to the appellant on 14-10-1991 at Ahore which was got encashed by him through his bank State Bank of India, Jodhpur. The appellant agreed to pay interest at the rate of 18% per annum. The appellant did not pay the interest and also did not refund the principal amount despite registered letter dated 13-6-94 and legal registered notice dated 20-9-94. Thus, the plaintiff-respondent claimed in the suit a decree for the principal amount of Rupees 1,74,000/- and interest from 14-10-91 to the date of filing of the suit at the rate of 18% Rupees 93,960/- i.e. Rs. 2,67,960/-.

(3.) On service of the notice, the appellant submitted application through his counsel for leave to defend which was rejected being barred by time prescribed in Rule 3 of Order 37, C. P. C. The trial Court also held that the facts disclosed by the defendant did not indicate that he had a substantial defence to raise in his favour. Ultimately the learned trial Court passed the impugned judgment and decree under Order 37, C. P. C.