In recovery suits, admitting receipt of funds shifts burden to recipient to prove claimed commission purpose; failure to explain rate, linkage, or plausibility rejects defense, entitling recovery with nominal interest.

JUDGMENT :

P. Dhanabal, J.

1.This Suit has been filed by the Plaintiff for the recovery of money to the tune of Rs.2,79,00,000/- with interest at the rate of 24 percent per annum as against the defendant and for costs.

2. The gist of the Plaint averments are as follows:-

The Plaintiff is doing a real estate business in and around the State of Tamil Nadu from the year 2013. While so, the defendant approached the Plaintiff through a common friend namely Mr. Jayapal and stated that he is also doing a successful real estate business in and around the State of Tamil Nadu for the past 15 years and he was well acquainted with more profitable lands in and around Chennai District, thereby, the defendant convinced the Plaintiff to lend some money to buy more profitable lands in SIPCOT project and promised to buy the same in the Plaintiff’s name and the defendant received a sum of Rs.39,00,000/- on 30.12.2020 through Axis Bank, Choolaimedu branch, Rs.22,00,000/- on the same day, through his company account M/s. Nalla Enterprises Private Limited through IndusInd Bank, Alwarpet Branch, Rs.16,00,000/- on 30.12.2020, paid by one Mr. K.R. Harishankar, friend of Plaintiff on behalf of the Plaintiff through Axis bank, Choolaimedu Branch, Rs.21,00,000/- on 31.12.2020 through his company M/s. Nalla Enterprises Private Limited through IndusInd Bank, Alwarpet Branch, Rs.43,00,000/- on 18.01.2021 through Axis Bank, Choolaimedu Branch, Rs.48,00,000/- on 18.01.2021 through Axis Bank, Choolaimedu Branch, Rs.44,00,000/- on 19.01.2021 through Axis Bank, Choolaimedu Branch, and Rs.46,00,000/- on 19.01.2021 through Axis Bank, Choolaimedu Branch. In total, on different dates as stated above, Rs.2,79,00,000/- was paid to block certain lands in SIPCOT and the defendant promised to purchase the said lands within the month of February 2021. While so, during the 1^st week of March 2021, when the Plaintiff enquired about the status of the said project, he came to know that the defendant had purchased certain lands in his name as well as in his sister’s name through registered Power Deeds dated 31.12.2020 and 20.01.2021. Therefore, the amount received by the defendant from the Plaintiff, was invested by the defendant for his personal gain, by cheating the Plaintiff. When the Plaintiff demanded the defendant to repay the above said amount paid by him for investment in SIPCOT lands, the defendant assured and promised to return back the entire money within the month of August 2021, whereas he failed to repay the same. In spite of repeated demands and requests made by the Plaintiff in person, the defendant failed to repay the said amount. Therefore, the Plaintiff had issued a Legal Notice dated 08.04.2022 calling upon the defendant to repay the said amount and the same was not replied by the defendant. Thereafter, the Plaintiff filed a Suit before this Court on 06.05.2022 and the same was returned pending re-presentation. Thereafter, the defendant issued a reply notice dated 26.05.2022 with false allegations. In the said reply notice, the defendant admitted the receipt of amount, but according to him, the said amounts were transferred by the Plaintiff as commission for the lands identified by the defendant. The said averment is false. By utilizing the amounts paid by the Plaintiff, the defendant obtained Power Deeds and invested money for his business. Therefore, the defendant is liable to repay the said amount, thereby, the Plaintiff fi