( 1 ) THE learned Single Judge has referred this matter to the Division bench vide order dated 8-10-2001 in view of the conflicting decisions in smt. Sujatha v Indian Bank, Sadashivanagar Branch, Bangalore , following the decision of the Supreme Court in Arjun Singh v Mohindra kumar and Others , and the subsequent decisions in Lakxminarayan enterprises, Kolhapur v Laxminarayan Textile, Belgaum and Other and U. Suresh Mallya v Okazaki Sekizai Company Limited. As per the directions dated 10-2-2004, the matter has come up before us.

( 2 ) THE necessary facts are that the respondent-plaintiff filed a suit against the petitioner-defendant for a judgment and decree for a sum of rs. 19,562. 82 together with interest at 21% per annum. The arguments were heard finally on 12-6-2001. The case was posted on 20-6-2001 for judgment. On 18-6-2001, the respondents filed I. A. No. III under Section 151 of the Civil Procedure Code, 1908 (for short, 'cpc') seeking to recall the order dated 30-5-2001 and to reopen the plaintiffs side to lead further evidence afresh. Another application I. A. No. V was filed under order 18, Rules 1 and 2 and under Section 151 of the CPC seeking permis