RAMAKRISHNAIAH Vs. P. PRAKASH RAO

JUDGEMENT

(1.) This appeal is directed against the judgment and decree dtd. 24/3/2021 in A.S.No.9 of 2011 on the file of the learned I Additional District Judge, Mahabubnagar, allowing the appeal filed by the appellant-defendant against the judgment and decree dtd. 1/12/2010 passed in O.S.No.48 of 2009 on the file of the I Additional Senior Civil Judge, Mahabubnagar. The appellant herein raised the following substantial questions of law.

(2.) The suit O.S.No.48 of 2009 was filed by Ch.Ramakrishnaiah-plaintiff for recovery of Rs.3.45,000 from the defendant-P.Prakash Rao basing on the promissory note with interest @ 18% per annum from the date of suit till the date of decree. The case of the plaintiff in nutshell is that he is well acquainted with the defendant, out of which the defendant approached him on 31/5/2007 for a hand loan of Rs.2,50,000.00 to meet his legal family necessities. At his request the plaintiff paid a sum of Rs.2,50,000.00 to the defendant on the same day under a promissory note executed by the defendant at Badepally to repay the same with interest @ 2% per month. The plaintiff demanded the defendant to repay the amount several times and when the defendant failed to repay the same he orally demanded the defendant on 20/11/2007 and got issued a legal notice on 5/12/2007 on which the defendant requested the plaintiff on 20/12/2007 to give one more year for repayment. Again the defendant did not pay the amount even after the lapse of one year i.e., 25/12/2008 and as such he filed the suit seeking recovery of the amount along with interest @ 18% per annum from the date of suit till the date of realisation.

(3.) In the written statement filed by the defendant he denied all the material allegations and further stated that plaintiff created the cause of action with a forged document only to harass him and that he never made any oral request and never obtained any loan from him. He also stated that the plaintiff is running financial business under the name and style of M/s.Bhagyasree Chit Fund, Jadcherla, Mahabubnagar. The defendant became a chit member in the year 2003 for Rs.1,00,000.00 with chit series number BSL-B4 Ticket No.23 and he was paying Rs.4,000.00 per month regularly and after completing the chit the plaintiff failed to pay the chit amount till today. He would further state that he also became member of another chit conducted by the plaintiff for a sum of Rs.50,000.00with chit series number BSC-B6 Ticket No.1 and he was paying Rs.2,000.00 per month and that after completing the chit the plaintiff has not paid the chit amount to him. Later, the defendant came to know that the plaintiff closed the chit fund business without his knowledge and thereafter he came to know that the plaintiff is conducting Zero (0) chit business. Defendant would further state that when the plaintiff is conducting the money lending business he obtained loan of Rs.50,000.00 in the name of his son by hypothecating the tractor and trailer and executed hire purchase agreement in favour of the plaintiff. Though he paid the entire loan amount, the plaintiff did not return the original RC alleging that he is in due of Rs.50,000.00. As the plaintiff refused to return the original RC, he got issued a legal notice dtd. 10/11/2005 and filed a complaint before the District Consumer Forum, Mahabubnagar, in C.C.No.38 of 2006. Therein, the defendant filed I.A.No.135 of 2006 seeking to produce the alleged promissory note and other necessary documents. As the plaintiff failed to summon those records in spite of the order of the Forum, it passed orders in favour of the defendant. The defendant would further state that he never executed the suit document and it was created by the plaintiff with forged signature, and therefore, the suit is liable to be dismissed.