JUDGMENT

The suit has been filed to direct the defendants to pay the sum of Rs.1,22,00,000/- together with interest at the rate of 36% per annum on Rs.50,00,000/- from the date of suit till the date of realization in full.

2 The brief facts stated in the plaint are that the plaintiff is a businessman in Chennai and the defendants are the builders who construct residential buildings in and around Chennai. During the course of business, st the 1 defendant, a joint venture partnership firm represented by the defendants 2 and 3, had approached the plaintiff and informed that they are having projects under process and required funds to tide over their financial crunch and requested the plaintiff to lend money on interest. At their request, the plaintiff agreed to lend money to the 1st defendant firm represented by 2nd and 3rd defendants and accordingly, the plaintiff lent a st sum of Rs.50 lakhs to the 1 defendant firm, vide Cheque No.004846 dated 04.05.2013 drawn at ICIC Bank, Saligramam Branch. The 1st defendant nd rd firm, represented by the 2 and 3 defendants, in evidence of availing the loan from the plaintiff, executed a promissory note dated 04.05.2013 promising to repay the said amount on demand with an interest at the rate of 36% per annum till the repayment of the entire amount and they had also st handed over the original documents of the properties belong to the 1 defendant firm as security but they had not created any equitable mortgage as agreed initially. Subsequently, the defendants made payment of interest for the period from May 2013 to October 2013 totalling a sum of Rs.9 lakhs and thereafter, they have not paid any money neither for the principal nor for interest and defaulted in repayment dues. The defendants also acknowledged the liabilities of the due amount payable to the plaintiff vide letter dated 10.06.2015 and assured to repay the amount borrowed from the plaintiff after few months when the market gets improved. However, the defendants failed to fulfil their promises. Therefore, the plaintiff has filed the present suit for recovery of the balance amount.

3 The brief facts of the written statement filed by the defendants is that the defendants never made any request to the plaintiff to lend money.

st The 1 defendant firm was doing a joint venture project in Nanmangalam and developed the land to construct 90 flats. On seeing the said project, the plaintiff and his sister namely K.Meenakshi expressed their willingness to invest in the said project on the basis of profit sharing method. Accordingly, the plaintiff invested a sum of Rs.50 lakhs in the said project. Though the plaintiff did not want to enter into any business agreement to that effect, he wanted a security for his investment. Therefore, he obtained the suit promissory note from the defendants without notifying any interest rate. The plaintiff also obtained signatures from the defendants in blank papers and secured the original documents pertaining to the land measuring 21 cents comprised in New Survey No.179/1A2, Old Survey No.179/1 located at Manikandan Nagar, Nanmangalam Village, Chennai-600 117 from the defendants. The rate of interest mentioned in the promissory note has been subsequently interpolated by the plaintiff by taking advantage of the blank promissory note obtained from the defendants. The suit promissory note was executed only for security purpose for the investment made by the plaintiff st in the 1 defendant’s project and not for availing loan as stated by the plaintiff and that the defendants never promised to pay any interest much less at the rate of 36 % per annum till the repayment of the entire amount. The defendants took all steps for the progress of the joint venture project by making further investments. Out of 15 blocks, 7 blocks were constructed and all possible steps were taken for marketing. Since in the meantime, the real estate market slow down, the sale of flats also went down. Inspite of that, the defendants paid a