JUDGEMENT
PARAMJEET SINGH, J. -
(1.) FOR the reasons indicated in the Civil Misc. application, the
same is allowed. Delay of 86 days in filing the appeal is condoned.
(2.) THIS second appeal arises from a suit for recovery of Rs.70,950/ - including interest filed by the appellant -plaintiff which was
decreed by the Court of first instance and appeal preferred by the
respondents -defendants has been accepted by the learned lower appellate
Court and judgment of the Court of first instance has been reversed.
The detailed facts are already recapitulated in the judgments of the Courts below and are not required to be reproduced. However, the
brief facts relevant for disposal of this second appeal are that appellant -
plaintiff filed a suit for recovery alleging that the defendants approached
the plaintiff in the month of July 1999 for grant of loan of Rs.50,000/ - and
offered to repay the same along with interest on demand. The plaintiff
advanced the loan to the defendants in the presence of Jarnail Singh and
Kulwant Singh. The amount was received by the defendants in cash. In
lieu of that, the defendants executed a receipt dated 10.07.1999 and
undertook to repay the loan with interest at the rate of 2% per month
within a period of one year. The defendants neither paid the interest nor
paid the principal amount despite repeated reminders and they willfully
failed to do so, as a result of which, the suit was filed and the plaintiff
claimed Rs.50,000/ - along with interest @ 2% per month and also prayed
that defendants be held jointly and severally liable to pay the amount i.e.
principal as well as interest accrued thereon.
(3.) UPON notice, defendants appeared and filed written statement and took preliminary objections that suit is not maintainable; plaintiff has
no cause of action and locus standi to file the suit. They, inter -alia,
contended that defendants never received any loan of Rs.50,000/ -. In fact,
the defendants were members of the Committee run by Jarnail Singh in the
name of his wife Gurdeep Kaur. The said transactions were benami as
Jarnail Singh was a Government employee. The plaintiff is the real
brother of Jarnail Singh. It is averred that brother of Jarnail Singh had
forged the signatures of the defendants and had prepared a fabricated
receipt. Since no loan was taken, the question of demand does not arise,
they are not liable to pay the amount. It is also one of the pleas that Jarnail
Singh is living just opposite the house of the defendants and is running
business of chit fund/committees and defendant no.2 became member of
one of such committees and at the auction in his favour, Jarnail Singh got
signatures of defendant no.2 in token of receipt of committee money and
signatures of defendant no.1 as guarantor in register maintained by Jarnail
Singh.;
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