JUDGMENT - VAZIFDAR S.J., J.:---The suit is filed as a summary suit under Order XXXVII, Rule 2 of the Code of Civil Procedure, 1908, to recover a sum of Rs. 5,04,26,250/- towards principal and interest upto 15th July, 2000 together with further interest at the rate of 18% per annum on Rs. 3,57,00,000/- from 16th July, 2000 till payment.

2. The plaintiff's case is that between 24-2-1995 and 23-7-1997 it had placed deposits of various sums aggregating to Rs. 4,79,00,000/- with the defendant which the defendant agreed to repay with interest, initially at the rate of 16% per annum and at the rate of 18% per annum with effect from 1-1-1997 on the basis of simple interest payable quarterly.

The defendant repaid an aggregate amount of Rs. 1,22,00,000/- towards the principal amount. The last payment towards the principal amount was of a sum of Rs. 25,00,000/- on 29th June, 1996, leaving a balance of Rs. 3,57,00,000/-.

The defendant also paid various sums towards interest between 1-4-1995 and 31-3-1998 at the intervals and at the rates mentioned above. After 31st March, 1998 the defendant did not pay any amount to the plaintiff.

3. This brings me to two important documents viz. balance confirmation letters signed by the defendant, on the basis whereof the plaintiff has filed this suit.

The plaintiff, under the cover of its letter dated 7th April, 1998 enclosed a statement of account for the period 1st April, 1997 to 31st March, 1998 and sought the defendant's confirmation thereof. The defendant's accountant confirmed the same. Thereafter, the defendant sought the plaintiff's confirmation of its account, contained in the defendant's letter dated 31-3-1999 which the plaintiff did.

4. Before dealing with the defendant's case in respect of the above balance confirmation letters, it is necessary to refer to the contents thereof.

(a) The plaintiff's said Ledger Account for the period April, 1997 to March, 1998 confirmed by the defendant, contains details regarding the principal amount lying with the defendant, the amount of interest paid for the quarters between 1st April, 1997 and 31st March, 1998 and the rate at which such interest was paid viz. 18% per annum. The account confirms the "Closing Balance" to be Rs. 3,57,00,000/-. Interest for the first four quarters was paid in full at the rate of 18% per annum. Only a part of the interest viz. Rs. 2,00,000/- was paid for the quarter 1st January, 1998 to 31st March, 1998. As stated earlier, the defendant confirmed this account.

(b) The defendant's account, confirmed by the plaintiff, also confirms the closing balance as on 1st April, 1998 to be Rs. 3,57,00,000/-. The credit column recites that Rs. 3,57,00,000/- was the "Balance b/d" i.e. the balance brought down or brought forward on 1-4-1998. The debit column recites that this amount of Rs. 3,57,00,000/- was the "Balance c/f" i.e. the balance carried forward on 31-3-1999. It further confirms that on 4th April, 1998 and 31st July, 1998 the defendant paid to the plaintiff towards interest a sum of Rs. 10,00,000/- and Rs. 4,06,500/- respectively, aggregating to Rs. 14,06,500/-.

It would be convenient in view of a point made on behalf of the defendant, which I shall come to later, to explain the reference to the interest paid in the defendant's account. The interest for the quarter 1st January, 1998 to 31st March, 1998 was Rs. 16,06,500/-. As stated in the plaintiff's said Ledger Account dated 8th April, 1998, the defendant on 16th March, 1998 paid only a part of this amount viz. Rs. 2,00,000/-. The balance amount was paid by the defendant to the plaintiff on 4th April, 1998 and 31st July, 1998 as reflected in the defendant's account.

5. Thus, the effect of the aforesaid balance confirmation letters is as under:-

i) The accounts of the plaintiff and the defendant are consistent with each other.

ii) The plaintiff and the defendant acknowledged that the principal amount due by the defendant to the plaintiff was Rs. 3,57,00,000/-.

iii) The defen

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