The principle of res judicata applies when no Appeal is filed against one of the judgments, making it final.

1. The defendants have preferred the present Appeal challenging the judgment and decree dated 111. 1994 made in O.S. No.396 of 1987 on the file of the Court of the Subordinate Judge, Arni.

2. The respondent herein filed the Suit seeking for a decree directing the defendants to pay the Suit Claim of Rs.41,192.50 with subsequent interest and costs.

The case of the plaintiff is that he leased out his rice mill to the defendants on a monthly lease of Rs.5,100/- and the tenancy, which was oral, commenced from 11. 1985 onwards and an advance amount of Rs.20,000/- was paid by the defendants to the plaintiff at the time of tenancy and the defendants were carrying on rice business in the rice mill of the plaintiff and suddenly on 10. 1987 they left the rice mill without informing anything to the plaintiff. According to the plaintiff, the defendants have not paid the monthly lease amount from 11. 1985 to 10. 1985 and a sum of Rs.43,350/- is due by the defendants by way of rent for 8 1/2 months period and the plaintiff has adjusted the advance amount of Rs.20,000/- and the defendants owe rental arrears of Rs.23,350/- to the plaintiff. It is further stated by the plaintiff that the defendants, at the time of vacating the premises, have taken the rice mill materials to the value of Rs.5,000/- with them and they are liable to pay the said sum also to the plaintiff. It is the further case of the plaintiff that the defendants using the name of the plaintiff have purchased gunny bags from one M. Ramasamy Mudaliar and Sons, Coimbatore, and they have not cleared that amount and the plaintiff has paid the said sum to Ramasami Mudaliar and Sons and he is entitled to recover the said sum also from the defendants and in spite of repeated demands made by the plaintiff, the defendants have not paid the above said sums and the plaintiff issued lawyers notice on 210. 1985 and 13. 1986 and the defendants sent reply containing false and frivolous allegations and hence, the Suit.

3. The defendants in their written statement have denied the lease agreement and have stated that the plaintiff was in possession of a tentative draft of the arrangement which has not been produced with the Plaint and it was agreed that the lease agreement is to come into existence and take effect only after a properly drawn up and registered lease agreement is effected and till then, there was to be no contractual relationship and the plaintiff received an advance amount of Rs.20,000/- from the defendants on 11. 1985 and within 2 or 3 days itself, it was found that the rice mill was under Court attachment and the defendants called on the plaintiff to clear the cloud or refund the advance and the plaintiff was not in a position to clear the cloud and he undertook to refund the advance with interest after a period of three months. According to the defendants, there was no relationship of lessor and lessee except the obligation of the plaintiff to refund the advance of Rs.20,000/- with interest and the plaintiff immediately let out the rice mill to one T.R. Danasekaran, who ran his business in the rice mill and he also subsequently vacated, and the plaintiff then let out the building to other persons. It is further stated by the defendants that they never took possession or ran any business in the rice mill for any period and there is no question of vacating on 10. 1985 as stated by the plaintiff. It is further stated in written statement that the defendants never purchased gunny bags from Ramasamy Mudaliar and sons using the plaintiffs name and the plaintiff issued legal notice making a false claim and a suitable reply has been sent by the defendants. The defendants have preferred a counter-claim seeking for refund of advance amount of Rs.20,000/- and a sum of Rs.7,550/- as interest, totaling a sum of Rs.27,550/- from the plaintiff.

4. The plaintiff filed a reply statement denying the counter-claim and has stated that in pursuance of the oral tenancy, a collateral agr