THE HONOURABLE SMT. JUSTICE K. SUJANA APPEAL SUIT NO.61 OF 2007

JUDGMENT:

This appeal is filed by the appellant-plaintiff aggrieved by the judgment and decree dated 27.10.2006 passed in O.S.No.89 of 1998 on the file of III Additional District Judge, Warangal. The suit was filed for recovery of Rs.5,25,000/- with future interest @ 36% p.a., on the principal amount of Rs.3,50,000/-.

2. The defendant, who was involved in a small export business, became acquainted with the sons of plaintiff, who owns a rice mill business. As they belonged to the same caste, the family members of both parties became acquainted with each other. The defendant would often borrow money from the plaintiff and his family members. On 01.08.1997, the plaintiff lent Rs.3,50,000/- to the defendant under a promissory note, with interest @ 36% p.a, for the defendant's joint Hindu family needs and rice mill business. The defendant's father had also requested the plaintiff over the phone to advance the loan. Despite promising to repay within a month, the defendant failed to do so, and instead kept postponing the repayment on various pretexts. Plaintiff then issued a legal notice on 19.02.1998, which was returned after