(1.) ON or about 27th January, 1998, the plaintiff instituted the above suit claiming as follows: - (a) A decree for a sum of Rs. 20,61,275.65/-; (b) Interest @ 24% per annum till realization thereof; (c) Attachment before judgment; (d) Receiver; (e) Injunction; (f) Such other or further relief.

(2.) THE above suit was instituted mainly on the allegations that in the second week of September 1994 the plaintiff at the request of the 2nd defendant, Prabhu Shankar Agarwal, agreed to lend and advance a sum of Rs. 10,00,000/- to his wife, namely, the 1st defendant herein, Sudha agarwal, on certain terms and conditions which according to the plaintiff, would be borne out from the course of conduct and correspondences exchanged by and between the parties. The terms and conditions were - (I) that "the plaintiff would lend and advance a sum of Rs. 10, 00,000/-to the defendant No. 1", (II) that "the interest shall be paid @ 24% per annum" and (III) that "the defendant shall repay the said sum of Rs. 10,00,000/-along with accrued interest thereon, on or before 10th October, 1994"

(3.) THE case of the plaintiff as made out in the plaint proceeds on the basis that the 2nd defendant represented to the plaintiff that the above loan was required for the business of the 1st defendant and the 2nd defendant promised that in the event of any default by the 1st defendant in repayment of the above loan the 2nd defendant would repay the same. The plaintiff believed such representation of the 2nd defendant and lent the said sum of Rs. 10,00,000/- by issuing two account payee cheques in favour of the 1st defendant of Rs. 5,00,000/-each drawn on Vijaya Bank dated 20th September, 1994 and 21st September, 1994 respectively.

(4.) ON the expiry of the fixed period for repayment of the above loan the plaintiff called upon the 1st defendant to repay the said sum of Rs. 10,00,000/-by a letter dated 27th October, 1994.

(5.) ON or about 31st March, 1995, the 1st defendant paid only a sum of Rs. 18,860/-towards purported payment of interest by a cheque dated 31st March, 1995 issued in favour of the plaintiff computing the rate of interest at 15% per annum in violation of the agreed rate of interest of 24% per annum. [see Paragraph-5 of the plaint].

(6.) THE plaintiff, however, protested the payment of interest, @ 15% per annum only instead of 24% by the 1st defendant and again called upon the defendants on 10th April, 1995 to pay the said sum of Rs. 10,00,000/- with interest @ 24% per annum computed up to 31st March, 1995 aggregating a sum of Rs. 11,26,247/- within a week from the date of demand, i.e. 10th April, 1995.

(7.) THE 1st defendant, however, unequivocally admitted the transaction in question and her indebtedness for the said sum of Rs. 10,00,000/- with interest and issued confirmation thereof in writing.

(8.) THUS, the 1st defendant, according to the plaintiff, unequivocally admitted the aforesaid loan along with accrued interests and expressly or impliedly promised to pay the balance within a reasonable time. [paragraph-7 of the plaint].

(9.) IN spite of demands the 1st defendant and/or the 2nd defendant failed and neglected to pay the said sam of Rs. 10,00,000/-and the accrued interests thereon and the only payment that was made by the defendants was the said sum of Rs. 18,860/-on accourt of some Interests.

(10.) THEREFORE, the plaintiff is entitled to the said principal sum of rs. 10,00,000/-with interest @ 24% per annum and also entitled to claim interest under the Interests Act. The particulars of the decretal claim of Rs. 21,61,275,65/- are provided in Paragraph-9 of the plaint.

(11.) TO defend the above suit both the 1st and 2nd defendants filed their respective written statements admitting in clear terms the grant of loan of Rs. 10,00,000/-by the plaintiff in favour of the 1st defendant. They also admitted that the plaintiff granted such loan by issuing the said two cheques of Rs. 5,00,000/-each in favour of the 1st defendant.