1. This is Defendant’s second appeal questioning the correctness and legality of the Judgment and Decree passed in RA No.104/2003 by Civil Judge (Senior Division ) & JMFC, Chickaballapur dated 10.11.2005, reversing the judgment and decree passed by Civil Judge (Junior Division), Chickaballapur dated 13.03.2003 in OS No.46/2000, dismissing the suit.

2. This Court by order dated 29.07.2010, had admitted the above appeal after framing the following substantial question of law:

“Whether in the facts and circumstances of the case, the Appellate Court was justified in reversing the judgment and decree passed by the trial Court by receiving the money lending licence without proper application and opportunity to the appellants”.

3. Heard Sri. G.R. Venkatesh, learned counsel for the appellant. Though, respondent served and represented by counsel, there is no representation on behalf of the respondent.

4. The facts in nutshell leading to filing of this appeal are as under and parties are referred to as per their rank appearing in the Trial Court.

5. Plaintiff instituted a suit for recovery of the money from the defendants for a sum of Rs.26,690/- together with current and futur