1. This is a defendant’s appeal questioning the correctness and legality of the judgment and decree passed by the I Additional Civil Judge (Sr. Dn) Mangalore, in O.S. NO.144/2000 dated 4-4-2007 whereunder plaintiff’s suit for recovery of money came to be decreed with interest and costs.

2. The facts in nutshell are as follows. The parties are referred to as per their ranks in the trail Court.

2.1 Plaintiff obtained on lease a shop premises in a commercial building bearing NO. 22-3-289 situated at Mangalore, for the purposes of running a Bar and Restaurant on monthly rent of Rs. 4,500/- from the defendant. The period of lease agreed was only one month i.e from 6-9-1992 to 5-10-1992. Earlier entering into lease with the plaintiff defendant was running a Bar and Restaurant in the said premises on account of the license granted to the defendant having expired it was agreed to be leased in favour of the plaintiff. Plaintiff deposited a sum of Rs. 75,000/- as security deposit by cheque No.21398 dated 6-9-1992 drawn on M.C.C. Bank Limited Kankanady Brach. Mangalore in favour of the defendant and it has been encashed. It was agreed that security deposit would be refunded at the time of vacating the premises without interest. An agreement dated 6-9-1992 also came to be executed between the parties agreeing on the terms and conditions of lease.

2.2 Plaintiff applied for necessary license to run Bar and Restaurant in the shop premises above referred and after consideration his application came to be rejected by the authorities and on informing the defendant that he was unable to secure the license, plaintiff is said to have vacated the premises. It was contended in the suit that defendant did not repay the advance amount of Rs. 75,000/- paid as security deposit. Though plaintiff could not run the business for a single day he had paid rents for three months and said rents were paid through cheques drawn on Bhagavathy Co-operative Bank, Jeppu, Mangalore drawn in favour of the defendant. It was further contended that after repeated requests the defendant issued a cheque for Rs. 70,000/- dated 22-3-1996 drawn on Mangalore Cahtolic Co-operative Bank drawn in favour of plaintiff. However, it was not presented at the request of the defendant and date in the cheque came to be changed by the defendant himself after making necessary corrections and affixing the signature at the places where correction was carried out. Plaintiff got issued a lawyer’s notice on 23-5-1998 demanding payment from the defendant by calling upon the defendant to refund the security deposit of Rs. 75,000/- with interest at 15% per month. Since defendant did not repay the amount plaintiff filed the suit in question on 16-4-1999 for recovery of Rs. 75,000/- paid as security deposit.

2.3 Since there were certain office objections raised by the Registry namely nonpayment of deficit Court fee suit came to be adjourned from time to time and on compliance of office objections suit came to be numbered on 25-6-2000 and summons was issued to the defendant.

2.4 On service of summons defendant entered appearance and filed the written statement on 9-10-2002. On the basis of the pleadings, the trail Court framed the following issues for its consideration:

“(i) Whether the plaintiff proves that the defendant is liable to pay back the security amount of Rs. 75,000/- deposited by him with the defendant as per the Rent Bond dated 6-9-1992 as alleged?

(ii) Whether the plaintiff proves that the defendant is also liable to pay interest at 16% p.a. on the above said security deposit amount?

(iii) Whether the plaintiff proves that he is entitled for the judgment and decree as sought for?

(iv) To what order or decree?

2.5 Plaintiff got himself examined as P.W.1 and got marked Ex.P.1 to P.5 Defendant also got himself examined as D.W.1 and got marked Ex.D.1 to D-4. No other witnesses were examined on behalf of the either of the parties. On considering the evidence on record and afte