Legal representatives are liable for the deceased's debts only to the extent of the inherited estate, and the right to sue survives only if the estate is inherited.

Krishna Rao, J.:

1. The plaintiff has filed the present application being G.A. No.1 of 2023 in C.S. No. 82 of 2022 praying for judgment upon admission for a sum of Rs. 50,00,000/- along with interest at the rate of 15% per annum from 1st January, 2018 till realization of the said amount.

2. As per the case made out by the plaintiff, the original defendant since deceased Srawan Kumar Himatsingka, the husband of the substituted defendant no.1(a) and the father of substituted defendant no.1(b) and 1(c) had approached the plaintiff for a short term loan/ financial assistance of Rs. 50,00,000/- for the purpose of expanding his business. Due to the close proximate relations between the plaintiff and the original defendant and the assurances given by the original defendant, the plaintiff has paid Rs. 50,00,000/- in two tranches on 15th July, 2013, an amount of Rs. 25,00,000/- and on 14th May, 2014, an amount of Rs. 25,00,000/- by way of bank transfer.

3. On receipt of the loan amount, the original defendant has acknowledged the receipts and had issued postdated cheques to the plaintiff and also agreed that the said loan amount would carry interest at the rate of 17% per annum. As per the request of the original defendant, time for repayment of loan was extended from time to time and finally, it was agreed between the parties that the interest would be 15% per annum instead of 17% per annum with effect from 1st October, 2017.

4. The original defendant has also issued a cheque no. 077967 for Rs. 50,00,000/- dated 1st April, 2018 but on presentation, the said cheque was dishonored with the reasons “Funds Insufficient”. The original defendant had also issued two cheques for Rs. 1,66,438/- and Rs. 1,68,287/-, each dated 15th September, 2018 and 30th September, 2018 being the interest from 1st January, 2018 to 31st March, 2018 and 1st April, 2018 to 30th June, 2018 after deducting TDS. On presentation of the said cheques, the same were also dishonored with the reasons “Funds Insufficient”. The original defendant has paid interest only uptill 31st December, 2017.

5. The original defendant had issued another cheque No. 096612 dated 1st April, 2019 for an amount of Rs. 50,00,000/- and the plaintiff has presented the said cheque but the same was dishonored with the endorsement “Insufficient Funds”.

6. The plaintiff had sent an advocate’s notice to the original defendant on 10th September, 2021 calling upon the original defendant for refund of entire amount together with interest at the rate of 15% per annum but inspite of receipt of notice neither the original defendant has paid the amount nor has sent any reply.

7. Mr. Utpal Bose, Learned Senior Advocate appearing for the plaintiff submits that during the pendency of the suit, the original defendant passed away and accordingly, the legal heirs of the defendant were substituted as defendants and the plaint is also amended.

8. Mr. Bose submits that payment of an amount of Rs. 50,00,000/- is admitted from the bank transaction and the acknowledgement of the original defendant. He further submits that from the correspondences between the plaintiff and the original defendant, it is clear that the original defendant had agreed to pay interest initially at the rate of 17% per annum and the original defendant has paid interest till 31st December, 2017 by deducting TDS. He further submits that as per request of the original defendant, the rate of interest was reduced to 15% per annum with effect from 1st October, 2017.

9. Mr. Bose submits that the original defendant has issued cheques for the principal amount as well