G.M.AKBAR ALI, J.

( 1. ) THE present appeal filed under Section 96 C.P.C as against the judgment and decree made in O.S. No. 552 of 2004 dated 3.3.2009 on the file of the learned I Additional District Judge, Coimbatore.

( 2. ) THE plaintiff is the appellant. THE appeal is preferred against the judgment and decree of the learned I Additional District Judge, Coimbatore dismissing a money suit. THE brief case of the plaintiff/appellant is as follows:

( 3. ) THE appellant is a partnership firm engaged in the business of accepting deposits, financing and conducting chits and related other business. THEre are 7 partners. THE respondent is engaged in real estate business and he used to borrow money from the appellant for his urgent business and family expenses from the year 1995 onwards. Towards his urgent family and business commitment, the respondent requested a loan in the second week of March 1996 and also in the first week of November 1997. THE appellant advanced a sum of Rs.30,00,000/- on 27.3.1996 and Another sum of Rs.10,00,000/-on 8.11.1997 and the respondent executed promissory note in favour of the appellant agreeing to repay the amount with interest at the rate of Rs. 3.30 per hundred per month.

( 4. ) THE respondent had also received the said sum after signing the payment receipts. THE respondent was irregular in payment of interest and committed default. THE respondent executed letters dated 31.3.1998 and 31.3.1999 confirming the balance representing the principal and interest.

( 5. ) THE respondent had also executed a power of attorney dated 7.12.1999 authorising one of the partners for the sale of five vacant sites situated at Tiruppur and adjust the sale proceeds towards the arrears of interest. Subsequently, on the instruction of the respondent, the five vacant sites were sold for a sum of Rs.8,00,000/- and were credited towards the interest on the account of the respondent.

( 6. ) AS on 18.8.2001, the respondent had paid interest for the loan of Rs.30,00,000/- till 23.10.1998 and has paid the interest towards the second loan of Rs.10,00,000/- till 24.2.1998 and a receipt was issued on 18.8.2001 and the respondent had also put his signature on the receipts acknowledging the payment of interest.

( 7. ) THEREAFTER, the respondent did not pay the balance amount. The respondent issued a cheque for Rs.84,00,000/- dated 1.10.2001 towards the liability of the principal and interest which accrued till 30.9.2001. As instructed by the respondent, the cheque was presented for collection on 1.10.2001. The cheque was returned unpaid with remarks "funds insufficient". Therefore, a statutory notice under the provisions of the Negotiable Instruments Act was issued and the respondent failed to comply with the demand. However, he sent a reply containing false and imaginary allegations. Therefore, criminal proceedings was initiated against the respondent and the learned Judicial Magistrate No. I, Tiruppur convicted the respondent for dishonour of cheque. However,, the respondent preferred an appeal and the said appeal was allowed; and the respondent was acquitted from the charges. Again, the appellant has preferred an appeal against the acquittal before this Court and the same is pending before this Court in A.S. No. 939 of 2004.

( 8. ) THE respondent pleaded discharge of liability and alleged that the cheque was issued only as security. THErefore, a legal notice was issued on 22.7.2004 calling upon him to pay the amount under the promissory note. THE respondent sent a reply dated 1.8.2004. As per the books of accounts, which is kept in the regular course of business, the respondent is liable to pay a sum of Rs.1,01,19,065/-. Though the respondent agreed to pay interest at Rs.3.30 per hundred per month, the interest is restricted only to Rs.2/-.

( 9. ) TILL 1999-2000, the appellant has been adopting mercantile system of accounting. Now the appellant is adopting cash system of accounting. The suit is also not barred by limitation