Suit for recovery based on promissory note is barred by limitation after three years and oral evidence alone cannot prove guarantee or payment without supporting documents.

JUDGMENT :

P. Dhanabal, J.

1.This Civil Suit has been filed by the Plaintiff for directing the defendants to pay a sum of Rs.3,28,00,000/- with interest at the rate of 24% per annum from 03.11.2018 till the date of realization and for permanent injunction restraining the defendants from dealing with the Suit property.

2. The case of the Plaintiff is that the Plaintiff is a financier by Profession for the past 35 years and the 1^st defendant has been availing loan from the Plaintiff and his family members from the year 2001. The Plaintiff used to lend money from his own fund or he will arrange money through other financiers like Mr. S. Mohan Kumar, Mr. Amit Kothari, M/s. Velu Finance and M/s. R.K. Associates – Kalpesh Jain etc., for which, the Plaintiff will stand as ‘guarantor’. The other financiers would lend money based on the guarantee given by the Plaintiff. If the borrower fails to repay the loan amount, the lender would demand not only from the borrower, but also from the Plaintiff, as he stood as guarantor. Out of the various loans availed by the 1^st defendant from the Plaintiff and his family members in the year 2016, the amount outstanding was Rs.72.40 lakhs. In order to secure the said loan, the 1^st defendant executed a demand Promissory Note dated 31.03.2016 to the tune of Rs.72,40,000/- and executed a balance confirmation letter dated 31.03.2016 for the said amount. The 1^st defendant also deposited the original title deeds of Sale Deed dated 26.02.1951 and Deed of Release Deed dated 01.02.1952 in respect of the property at Malayaperumal Street, Chennai.

2.1. Again in the month of December 2016, the 1^st defendant approached the Plaintiff for further financial assistance to an extent of Rs.1 crore and at the request of the 1^st defendant, the Plaintiff also arranged financial assistance from Mr. Mohan Kumar and for the said money, the Plaintiff and his son stood as guarantors and a sum of Rs.1 crore was paid to the 1^st defendant through installments viz., Rs.30 lakhs on 16.12.2016, Rs.10 lakhs on 13.04.2017 and Rs.60 lakhs on 15.02.2017 and in total, Rs.1 crore was paid by the Plaintiff to the 1^st defendant through Mr. Mohan Kumar. The 1^st defendant had repaid only Rs.14 lakhs towards the loan amount of Rs.1 crore to the said Mohan Kumar and he did not make any other payment and thereby the said Mohan Kumar demanded payment and the 1^st defendant requested the Plaintiff to pay the said money. At request of the 1^st defendant, the Plaintiff paid a sum of Rs.32 lakhs on behalf of the 1^st defendant to the said Mohan Kumar in the month of January 2018 and another sum of Rs.54 lakhs on behalf of the 1^st defendant to the said Mr. Mohan Kumar during the month of December 2019. The said Mohan Kumar also acknowledged the receipt of the said amount.

2.2. Again at request of the 1^st defendant, the Plaintiff arranged loan of Rs.2 crores from M/s. Velu Finance. For the said amount also, the Plaintiff stood as guarantor. The 1^st defendant did not repay the entire amount and there was a due of Rs.10 lakhs. The said amount of Rs.10 lakhs was paid by the Plaintiff to the said M/s. Velu Finance on behalf of the 1^st defendant. Thereafter, in the month of October 2018, the 1^st defendant and his wife came to the residence of the Plaintiff to reconcile th