1. This suit has been filed by the plaintiff for recovery of a sum of Rs. 59,75,000/- together with interest at 24% per annum from the date of plaint till realisation and for costs.

2. The plaint averments are as follows:

Plaintiff is the sole proprietor of M/s. Sound of Art, engaged in the trade of purchase of Audio rights of leading film songs for local and overseas marketing, acquisition of master spools recording therefrom into audio cassettes, manufacture, sale and distribution of audio cassettes and allied activity. In 1994, the defendant produced a Tamil film ‘Kadalan’ and its negative rights was held by Rachana Pictures, of which the defendant is the sole proprietor. In March 1994, the defendant approached the pl aintiff for the distribution and sale of the sound track and songs of the film ‘Kadalan’, for which an agreement was entered into between the parties on 30.5.1994. Under the said agreement, the defendant had assigned all the rights and interests including the sound recordings in respect of the film ‘Kadalan’ to the plaintiff for a consideration of Rs. 12,50,000/-, which sum was paid by the plaintiff vide cheque dated 9.3.1994. The defendant sought a loan for Rs. 50.00 lakhs from the plaintiff promising to repay the same within four mon ths. The plaintiff disbursed the said loan of Rs. 50.00 lakhs by way of ten cheques each for Rs. 5.00 lakhs dated 16.5.94 and 8.6.94 respectively. After the expiry of four months, the plaintiff contacted the defendant in October 1994 and requested him to repay the said loan. A legal notice was issued on 20.9.1995, in this regard. The defendant sent a reply dated 7.10.1995, alleging that he had not taken any loan and the amount of Rs. 62.50 lakhs received from the plaintiff was only towards staggered pay ments for overseas rights of the film ‘kadalan’, and that though the consideration agreed upon orally was Rs. 1.00 crore, it was restricted to Rs. 12.50 lakhs. The loan of Rs. 50.00 lakhs is totally separate, from and independent of the purchase of audio rights of ‘Kadalan’. Hence the suit.

3. In the written statement filed by the defendant, it is alleged that the plaint does not disclose any cause of action against the defendant. The agent has no locus standi to and cannot institute the suit against the defendant on the basis of the alleged power. The defendant did not want a loan of Rs. 50.00 lakhs for his film business from the plaintiff. He is not liable to pay the suit claim. The Audio rights of the movie Kadalan could not have been sold to the plaintiff, since they were selling on all time high and it was not sold to the plaintiff for Rs. 12.50 lakhs. The plaintiff agreed to pay a total consideration of Rs. 1.00 crore as price for the audio/CDs rights of the said movie. The plaintiff assured the defendant that as he was not sure of the market condition and the potential for the cassettes he is not putting the whole amount in writing but agreed to pay the amount originally bargained in staggered instalments and made the first payment. In this context only the agreement was entered into between the parties. The amount of Rs. 50.00 lakhs was not received as a loan but was a part of the payment due to the defendant. It is inconceivable that the parties who have no prior transactions between them, could have entered into a loan transaction and that the plaintiff could have given such a huge amount without taking any loan document and security. The payment was not a loan and hence no interest is payable much less at 12% p.a. from the date of payment and at 24% p.a. after the suit. In pursuance of the agreed terms, between the parties during March, May and June, 1994, the plaintiff is bound to pay to the defendant the remaining amount of Rs. 37,50,000/- being the balance of the sale price for the audio and CDs rights. He is also liable to pay interest on the balance amount at 12% per annum. Though the defendant is entitled to claim interest from October 1994, he is restr