The main legal point established in the judgment is the court's authority to modify orders to include default clauses for non-compliance in loan recovery cases.

JUDGMENT

(Prayer: Original Side Appeal filed under Clause 15 of Letters Patent, against the fair and decretal order dated 08.03.2022 in O.A.No.35 of 2022 in C.S.No.59 of 2021 passed by the learned Single Judge.)

D. Bharatha Chakravarthy. J.,

A. The Appeal :

This Original Side Appeal is directed against the order of the learned Single Judge, dated 08.03.2022 in O.A.No.35 of 2022 in C.S.No.59 of 2021, by the Respondent. In this judgment, the parties are referred to as per their array in the Suit.

B. The facts of the case:

2. The brief facts leading to the filing of the appeal is that by a loan agreement dated 21.09.2019, the plaintiff and the defendant agreed that the plaintiff will take over the loan of the defendant with the third party by name, Gopuram Films/Anbu Cheziyan to the tune of Rs.21.29 crore and the defendant should pay the said sum to the plaintiff, with interest at the rate of 30% per annum, calculated on diminishing balance. Alleging that the defendant did not pay the amount as per the payment schedule mentioned in the loan agreement the plaintiff filed the above suit, claiming recovery of a total sum of Rs.30,5,68,137/- with further interest at the rate of 30% per annum with a principal sum of Rs.21.29 crore.

2.1 In the said suit, earlier an application was filed in A.No.2339 of 2021, praying for a decree on admission which was dismissed, holding that the admission alleged on the part of the defendant was not clear and categorical. The application in O.A.No.35 of 2022 was filed for an interim injunction restraining the respondent/defendant from in any manner releasing his movie “VEERAME VAGAI SUDUM” and the application in A.No.350 of 2022, was filed for a direction that all amounts received or receivable in respect of the said film to be deposited into the Court. The said applications were taken up for disposal and by a common order dated 08.03.2022, after considering the contentions by both sides, the learned Single Judge directed the respondent/defendant to establish an interest bearing in the Fixed Deposit Account in a Nationalised Bank in the name of the Registrar General, Madras High Court, for a sum of Rs.15 crore to the credit of the suit, and further directed such fixed deposited amount shall be for an initial period of one year and it should be renewed until the disposal of the suit, and further consequential directions were also issued. Paragraph No.10 of the common order dated 08.03.2022 passed by the learned Single Judge is extracted hereunder:-

“10. In the result, these applications are disposed of on the following terms without any order as to costs:

(i) The respondent is directed to establish an interest bearing fixed deposit account in a nationalised bank in the name of the Registrar General, Madras High Court, for a sum of Rs.15 crore to the credit of the suit. Such fixed deposit shall be for an initial period of one year, and should be renewed until disposal of the suit.

(ii) Upon establishing the fixed deposit, the original fixed deposit receipt shall be deposited with the Registrar General and a copy thereof shall be provided to the applicant/plaintiff.

(iii) Such fixed deposit shall be established within a period of three weeks from the date of receipt of a copy of this order.

(iv) The fixed deposit shall be subject to the outcome of the suit.

(v) The applicant is permitted to produce the additional documents subject to objections by the respondent, including with regard to relevance and proof. The respondent shall file the statement of admission/denial in respect of the additional documents within two weeks.

(vi) List the suit on 22.03.2022.”

Aggrieved by the same, the present Original Side Appeal is filed by the respondent therein.

C. The Submissions:

3. Heard, Mr.A.Chidambaram, learned Counsel for the appella