( 1 ) THE plaintiff, a registered partnership firm through its Managing Partner, Sh. Anil Kumar Aggarwal, has filed this suit under Order 37, Civil Procedure Code on the basis of an agreement dated 12th June, 1991 under which a short term loan of Rs. 10,00,000. 00 (Rupees ten lakhs) was given to defendant No. 1, through its Managing Director Sh. N. S. H. Prasad, to be returned on 31st October, 1991 along with interest at the rate of 24% per annum payable on first of every month. The amount was paid through a Bank draft of Canara Bank dated 17th June, 1991. The defendant assured under the agreement that it would be returned on or before 31st October, 1991 with interest at the rate of 24 percent. The defendant, in addition to above, also agreed and undertook to give other benefit to the plaintiff arising out of exports made by defendant No. 1 and the post shipment facilities available to the exporters. The defendant failed to honour his commitment and also failed and neglected to pay the said amount of Rs. 10,00,000. 00 with interest of post dated cheque dated 1. 8. 1998 for a sum of Rs. 12,71,475. 00 was given to the plaintiff on 16. 7. 1998. This included Rs. 10,00,000. 00 towards repayment of loan plus interest Rs. 2,71,475. 00. This cheque was dishonoured on account of insufficient funds. On 15th October, 1992, the defendants issued a cheque bearing No. 4486681 for Rs. 6,00,000. 00. This was also dishonoured. Similarly, on 31st August, 1993 another cheque bearing No. 215209 for a sum 1,74,032. 00 was also dishonoured. Further, on 15th November, 1993 payment of Rs. 1,74,032. 00 was made. On 1st October, 1993, the plaintiff issued a legal notice. The defendants again on 31st December, 1993 issued a further cheque for a sum of Rs. 10,00,000. 00. The said cheque was again dishonoured with a remark "insufficient funds" dated 12th January, 1994. The plaintiff s Bankers debited the plaintiff s account with a sum of Rs. 1,600. 00. On 25th January, 1994, another legal notice was issued calling upon the defendants to pay the entire amount including interest accrued up to 31st December, 1993 after making due adjustment in respect of an amount of Rs. 1,74,032. 00 received by the plaintiff. On the 9th February, 1994, the defendant replied the notice through their Advocates and clearly and unequivocally admitted its liability but requested the plaintiff not to initiate legal proceedings and to grant them last opportunity by 30th June, 1994. In response to letter dated 7th July, 1994, on 15th July, 1994 the Advocate of defendants again duly and unequivocally admitted its liability in writing and reiterated the assurance of his clients and again sought time to enable his clients to make the payment of the amounts. Ultimately the plaintiff filed this suit under Order 37, Civil Procedure Code for recovery of Rs. 10,00,000. 00 as principal and Rs. 4,04,506. 00 as unpaid interest as mentioned in Annexure-A.

( 2 ) THE defendants moved an application for leave to defend (IA No. 3350/95) on various grounds. The plaintiff seeks a decree of Rs. 14,04,506. 00 against defendants No. 1 and 2 while the agreement relied upon by the plaintiff whick is the basis of the suit dated 12th June, 1991, is between the plaintiff and defendant No. 1. As the plaintiff seeks the recovery of the suit amount from defendant No. 2 also, the suit as framed under Order 37, Civil Procedure Code is not competent. Under Order 37, CPC, the plaintiff is not entitled to any future interest as has been claimed in the suit. The amount was advanced by the plaintiff for the operation of sea fishing trawlers. It is claimed that the whole industry has been declared sick by the Government of India and a Technical Committee was appointed vide order dated 10th May, 1993. The Technical Committee gave its report dated 11th March, 1994 which is being examined by the Central Government, Ministry of Food Proceeding. It is also claimed that since the plaintiffs had taken the p