JUDGMENT

1. The appeal is filed by the defendant in O.S.No.173 of 2005 on the file of Principal Senior Civil Judge's Court, Kurnool. The respondent herein is the plaintiff in the said suit.

2. The parties will hereinafter be referred to as arrayed before the trial Court.

3. The brief averments in the plaint are as follows: On 10/5/2002, the defendant borrowed a sum of Rs.3, 00, 000.00 and agreed to repay with future interest at 24% per annum and executed the suit pronote in favour of the plaintiff. Thereafter, in spite of repeated oral demands made by the plaintiff, the defendant failed to repay the debt. On 16/4/2005, the plaintiff got issued a legal notice and the same was received by the defendant. The defendant failed to repay the debt nor give a reply. The defendant is not an agriculturist and therefore claimed the agreed rate of interest. Hence, the suit.

4. The defendant filed a written statement contending that he approached the plaintiff on 8/5/2002 for a loan of Rs.3, 00, 000.00 for his partnership business. The plaintiff agreed to lend money at 24% per annum. On 10/5/2002, the plaintiff wanted him to give a D.P. Note for Rs.3, 00, 000.00 and after scribing the pronote, he