J U D G M E N T

CHANDRA DHARI SINGH, J.

I.A. 3969/2023-Application on behalf of the defendant under Order XXXVII Rule 3(5) read with Section 151 of Civil Procedure Code 1908 seeking Leave to Defend

1. The instant application under Order XXXVII Rule 3(5) of Civil Procedure Code, 1908 (hereinafter CPC) has been filed seeking following reliefs:

“It is therefore, in view of the above said facts and circumstances, most respectfully prayed that this Hon'ble Court may kindly be pleased to grant leave to contest the suit of the plaintiff to the defendant in the interest of justice.

Pass any other order or relief as this Hon'ble Court deems fit and proper on the facts and circumstance of the present case in the interest of justice.”

FACTUAL MATRIX

2. The plaintiff i.e., Chander Bhalla, one of directors of Grand Prix Engineering Private Limited. The defendant i.e. Mr. Rajeev Bhatnagar, is a distant relative of the plaintiff.

3. The plaintiff has filed the instant civil suit alleging that the defendant, being in dire need of funds, sought a loan amounting to Rs.7.5 crores from the plaintiff.

4. It is stated that the defendant continued to make occasional payments till the month of July, 2019, however, the defendant started defaulting in the repayment from the month of August, 2019 and further asked for subsequent loans from the plaintiff company, which was declined in light of the non-

payment of the outstanding amount of the previous loan.

5. The defendant sought time till September 2021 to repay the outstanding loan amount and the interest amount on the pretext of the then prevailing pandemic.

6. Pursuant to above, it is asserted that the parties decided to put the terms of the oral loan agreement into a written loan agreement and on 15th September 2021 executed a loan agreement. The aforesaid loan agreement stipulates that the borrower, i.e., the defendant shall be liable to pay a monthly interest to the plaintiff @12% per annum. It was further agreed in the said loan agreement that the defendant would return the entire loan amount as and when demanded by the plaintiff within 90 days. Accordingly, the defendant continued to repay the loan amount in installments.

7. It is alleged by the plaintiff that the defendant failed to make payment of the principal amount including interest. Therefore, by way of an e-mail dated

24th January 2022, the plaintiff demanded return of the principal amount.

8. The plaintiff again vide letter dated 14th February, 2022 demanded repayment of the entire loan amount, along with the interest which was duly replied to vide email dated 15th February, 2022, acknowledging the loan however, the defendant did not make any payment.

9. The plaintiff apprehends that the defendant is systematically selling and disposing off his assets, in an attempt to divert his money and assets after liquidating the same into a company namely, M/s Seven Eleven Leasing Finance Limited, wherein, he is a director along with his sister and father. The defendant has sold as many as five properties making him in possession of the sale amount and yet the defendant failed to repay the loan amount to the plaintiff.

10. In his attempt to recover the money, the plaintiff vide email dated 3rd May, 2022 demanded repayment of the loan amount, along with the interest which was duly replied to vide email dated 3rd May, 2022, by the defendant, thereby, offering certain terms for settlement on the outstanding loan amount which would be applicable to both the loans undertaken by the plaintiff and loan advanced by the company in which the plaintiff is a director i.e., Grand Prix Engineering Private limited. However, the plaintiff as well as the company rejected the said proposal on the ground that the proposal did not include the amount due in arrears of interest and the repayment schedule spread over a period of five years.

11. Pursuant to which the defendant sent another email dated 6th May 2022 and offered to make the payment of the loan amount without interest and