The acknowledgments of debt and communications from the defendant indicated an acknowledgment of liability to pay the loan amount, supporting the plaintiff's claim under the written contract/acknowledgment.

JAYANT NATH, J.

I.A.10790/2011 (O.37 Rule 3(5))

1. This is an application filed by the defendant under Order 37 Rule 3(5) of the Code of Civil Procedure seeking leave to defend. The Suit is filed by the plaintiff under Order 37 of the Civil Procedure Code claiming recovery of a sum of Rs.25,72,000/-.

2. As per the plaint, the plaintiff is a partnership firm and submits that it is engaged in the business of money lending. It has a licence granted by the Collector Money Lending, Delhi under Section 4 of The Punjab Registration of Money-lender’s Act, 1938 as extended to Delhi. The suit transaction it is submitted consists of loan of Rs,20 lacs which was availed of by the defendant. It is further claimed that the defendant is liable to pay interest at the rate of 15.6 % per annum which is the agreed rate of interest. It is submitted by the plaintiff that that the defendant has been availing loans from the plaintiff since 2005 when the defendant was introduced to the plaintiff by one Mr. S.K. Surana who acted as an intermediary/broker. It is submitted that the a practice adopted by the defendant was of availing loan from the plaintiff for a fixed time and simultaneously executing agreement/letter acknowledging his liability to make the payment and also handing over a cheque towards repayment of the principal loan amount as well as the interest for the period as decided at the time of execution of the agreement. Often the loan was renewed and taken for another fixed period by executing similar documents. It is further submitted that the defendant entered into a number of transactions with the plaintiff as prescribed above.

3. It is submitted by the plaintiff that the present suit pertains to a loan of Rs.20 lacs which was availed of by the defendant from the plaintiff on 15.6.2006. The plaintiff advanced the money through cheque No.208958 dated 15.06.2006 drawn on Axis Bank, Barakhamba Road, New Delhi110001. It is stated that the said loan was subsequently renewed on 13.10.2006, 11.01.2007, 1.4.2007 and 29.7.2007 accordingly. On 26.10.2007 it is stated that while renewing the loan the defendant instead of handing over one cheque towards the principal amount and one towards payment of interest handed over two cheques of 10 lacs each towards payment of the principal amount and two separate cheques towards interest accruing thereby splitting the loan of Rs.20 lacs into two parts. The said loan of the two amounts respectively were also renewed on various dates. The last renewal was of 1.2.2009 for a period of two months till 31.3.2009 by executing two letters/agreements and also handing over two cheques for a sum of Rs.10 lacs each bearing No.376279 and 376282 both dated 31.3.2009 both drawn on ICICI Bank Ltd., Sadar Bazar, Delhi-110006. In addition, two cheques for a sum of Rs.24,,975/-were drawn on ICICI Bank limited towards interest for the period 25.1.2009 to 31.3.2009 @ 15.6% per annum. The admitted fact is that the cheques, for the principal amount were not presented for encashment by the plaintiffs.

4. It is further submitted that on 30.8.2009 communication was sent to the defendant demanding repayment of the principal and interest. A legal notice was also sent by the counsel for the plaintiff and the same was dispatched on 2June, 2010. It is stated that both the communications were duly received by the defendant but there has been no reply to the same. It is submitted that the defendant has defaulted in repayment of the loan. On the basis of the above, it is urged that the plaintiff is entitled to recover the amount as stated in the plaint along with the accrued interest. It is stated that the claim in the suit is for recovery of an amount arising out of a written contract payable by the defendant under the bill of exchange besides recovery of debts of a liquidated sum of money payable by the defendant.

5. The defendant on the other hand after having entered appearance and after having been served with the Summons of Judgm