SAMALA VENU Vs. FLYCON BLOCKS PVT. LTD.

JUDGEMENT

(1.) The petitioner herein filed a summary suit vide O.S.No.131 of 2023 before XXVII Additional Chief Judge, City Civil Court at Seunderabad (for short, Court below) under Order VII Rule 1 read with Sec. 26 of CPC for recovery of Rs.3,80,48,150.00. The respondents herein filed an application vide I.A.No.2413 of 2023 under Order XXXVII Rule 3(5) read with Sec. 151 of CPC seeking permission to defend the case unconditionally. After hearing both the parties, by impugned order dtd. 16/2/2024, the Court below allowed the said application and permitted the defendants to defend themselves unconditionally. Challenging the said order, this petition is filed under Article 227 of the Constitution.

(2.) The petitioner herein is the plaintiff and the respondents herein are the defendants in the said suit. For the sake of convenience, the parties hereinafter shall be referred to as they are arrayed in the said suit.

(3.) Draped in brevity, the relevant facts are that the plaintiff averred before the Court below that defendant No.2 had friendship with one Mr.Allamsetty Raghunath. Defendant No.2 is Shareholder and Director of defendant No.1, Flycon Block Private Limited. Defendant No.1 approached said Allamsetty Raghunath requesting for advancing loan for his business activity. A promise was made by defendant No.2 to Allamsetty Raghunath that loan amount being advanced by him from time to time would be cleared by defendant No.2 progressively. It is also averred in the plaint that the defendants agreed and assured to repay the hand loan amounts to said Allamsetty Raghunath along with interest @ 36% per annum i.e., 3% per month. The different amounts were paid by Allamsetty Raghunath to the defendants on different dates. In total, Rs.60,63,000.00 were paid by Allamsetty Raghunath to the defendants between 25/1/2007 to 13/9/2008.