S. RAJESWARAN, J.

The defendant in O.S. No. 365 of 2004 is the appellant before this Court. The suit in O.S. 365 of 2004 was filed by the plaintiff, N. Subbiah Pillai, for recovering a sum of Rs. 3,43,466.66 with subsequent interest. The case of the plaintiff is that the plaintiff was employed in Rameswaram Temple. He was having a sum of Rs. 2,00,000/- as his savings on the verge of his retirement from service and he was contemplating to purchase a house for residence at Rameshwaram. At that point of time, he came into contact with the defendant who belongs to the same place. On the basis of the advice given by the defendant that Rs. 2,00,000/- could be lent to him by way of loan and that the said loan would carry interest at 4% per month and thereby he would be getting more money on the savings. He further suggested that the plaintiff could also be inducted as a member in the chit group conducted by him to the total value of Rs. 2,00,000/- and out of the interest amount, the plaintiff could pay the instalments. Lured by the words of the defendant, the plaintiff acceeded to the suggestion. The defendant in turn had executed two promissory notes dated 12.7.1998 for a sum of R