The present appellant was the appellant in the Court of Prl. Civil Judge (Sr.Dn.) & JMFC, Srirangapatna (henceforth for brevity referred to as ‘Lower Appellate Court) in R.A.No.11/2006 and was also the defendant in the Court of Civil Judge (Jr. Dn.) & JMFC, Srirangapatna (henceforth for brevity referred to as ‘trial court’) in O.S.No.11/2003. The present respondent had instituted a suit against the appellant/defendant in the trial court in the said O.S.No.11/2003 seeking for recovery of a sum of Rs.45,120/- with interest thereupon.

2. The summary of the case of the plaintiff in the trial court was that the defendant had borrowed a sum of Rs.26,000/- from him for his business purposes on date 20.01.2000 by executing on demand promissory note and consideration receipt, wherein, he had agreed to repay the said amount together with interest at the rate of 2% per month. Since the defendant failed to repay the loan amount with interest, inspite of several requests, reminders and issuance of legal notice to him by the plaintiff, the plaintiff was constrained to file original suit in O.S.No.11/2003 against the defendant for recovery of the amount. The trial court by its judgment a