J U D G M E N T

This appeal arises out of the judgment and decree in A.S No.147/2008 of the files of the Additional District Court, Thalassery, by which a decree for recovery of money granted in favour of the appellant in O.S No.96/2005 on the files of Sub Court, Payyannur, was reversed.

2. Brief facts necessary for the disposal of the appeal are as follows:-

2.1 The plaintiff sued the defendant for recovery of money on the strength of a cheque No.490429 drawn in his name. The plaintiff contended that, for establishing a super market the defendant was in short of money and therefore the plaintiff had advanced an amount of Rs.1,50,000/- and as a security for the same, a cheque was given. When the cheque was sent for collection, the same was returned with an endorsement ‘in sufficient fund’. The defendant resisted the suit and contended that there is no privity of contract between the plaintiff and the defendant and that the defendant had financial transaction with the son in law of the plaintiff, namely Pavithran and that three cheques and some signed blank stamp papers were entrusted to the said Pavithran and later the liability was discharged and the daughter of the plaintiff had i