A cause of action is established when the plaintiff proves necessary facts for relief, as demonstrated by the acknowledgment of a loan and dishonor of a cheque.

JUDGMENT :

Krishna Rao, J.

1. The plaintiff has filed the suit praying for a decree of sum of Rs. 60,02,146/- along with interest. The plaintiff has filed an application being G.A. No. 2 of 2023 under Chapter XIIIA of the Original Side Rules of this Court for summary judgement.

2. The defendant has filed an application being G.A. No. 3 of 2023 for rejection of plaint and dismissal of the suit.

3. As per the case of the plaintiff, the defendant requested the plaintiff for a short term loan of Rs. 40,00,000/- for the purpose of his business and agreed to refund the said amount within 92 days with interest at the rate of 15% per annum. As per request of the defendant, the plaintiff has paid the said amount to the defendant by way of RTGS on 11th July, 2018. The defendant has confirmed the receipt of the said amount by a letter dated 11th July, 2018. In the confirmation letter, the defendant has also forwarded two postdated cheques of Rs. 40,00,000/- and Rs. 1,51,233/-. The plaintiff has encashed the amount of Rs. 1,51,233/- being the interest for 92 days but the defendant has requested for extension of the loan amount of Rs. 40,00,000/- and the same was extended from time to time and the cheque of Rs.40,00,000/- was returned to the defendant. The defendant had paid interest of Rs. 49,315/- and Rs. 1,47,945/- on 28th December, 2018 and 16th February, 2019 respectively.

4. The defendant has issued a cheque of Rs. 40,00,000/- dated 1st April, 2020 in favour of the plaintiff but on presentation of the said cheque, the same was returned to the plaintiff with the endorsement “Drawer Signature Differs”. After dishonour of the said cheque, the plaintiff has sent a notice to the defendant through email calling upon the defendant for repayment of loan along with interest but the defendant has neither sent any reply nor has paid any amount to the plaintiff.

5. Learned Counsel for the plaintiff submits that Writ of summons was duly served upon the defendant on 29th July, 2022 through bailiff and the defendant entered appearance in the suit on 3rd August, 2022. Learned Counsel for the defendant had never informed the plaintiff with regard to appearance of the defendant in the suit and only on receipt of the report from the office on 3rd January, 2023, the plaintiff came to know that the defendant had entered appearance in the suit but till the filing of the present application, the defendant has not filed written statement.

6. Learned Counsel representing the plaintiff submits that immediately when the plaintiff came to know that the defendant entered appearance, the plaintiff has filed the present application under Chapter XIIIA of the Original Side Rules of this Court for summary judgment.

7. Learned Counsel for the plaintiff submits that the defendant has no defence to defend the suit and the plaintiff is entitled to get summary judgment and decree of amount as claimed by the plaintiff.

8. As per the case of the defendant, the defendant is one of the Director of the firm namely, “Skipper Furnishing Private Limited” and the plaintiff has approached the defendant to invest an amount of Rs. 1,00,00,000/- in the said business in order to derive financial gain. Upon negotiation between the parties, it was agreed that the plaintiff would immediately pay a sum of Rs. 40,00,000/- as an advance amount to the defendant as loan for 92 days with simple interest at the rate of 15% per annum.

9. It is the further case of the defendant that the defendant has issued two postdated cheques to the plaintiff for the principal amount and interest but on realization of the interest amount, the plaintiff will make further amount of Rs. 60,00,000/- and the plaintiff will return the cheque of the principal amount of Rs. 40,00,000/-. It is further submitted that the investment of Rs. 1,00,00,000/- by the plaintiff in the business of the defendant is for a period of ten years and thereafter the plaintiff would be entitled to seek refund of the said amount.

10. Learned Counsel