Decided on March 25,2008



K.SAMPATH, J. - (1.) The complainant in C.O.P. No. 88 of 2003 on the file of the District Forum, Erode is the appellant herein.
(2.) His case was as follows: - The complainant and his wife applied for a loan to the second opposite party for construction of a house by the first opposite party. The loan papers were signed by the complainant and his wife. They also gave a promissory note and mortgaged the undivided share of land with OP2. The first opposite party, however, never started any construction work even after the stipulated time as agreed to. The second opposite party sanctioned full loan amount of Rs.5 lakhs directly to Matrix Housing Private Limited, the Managing Director of which Company was the first opposite party in one cheque without verifying the progress in the building. After several letter correspondences OP1 assured the complainant that he would complete the flat soon. This was not done. The complainant wrote a letter to OP2 to recover the loan from OP1. There was default committed in paying the monthly instalments and when demanded, the complainant represented to OP2 that the amount had to be repaid only by OP1. The second opposite party had acted highhandedly and had effected publication of photos in dailies about the non-repayment of the loan amount by the complainant. In these circumstances, the complaint came to be filed for a direction to OP2 to recover the entire loan amount from OP1 and release the complainant from the obligation to repay the amount and also direct OP1 to pay Rs.1,25,000/- representing the advance paid to OP1 and for a further direction to pay Rs.1 lakh towards compensation for pain and suffering and Rs.2000/- towards expenses.
(3.) OP1 took a stand denying the case of the complainant and further stating that the complainant and one Mr. Arivudai Nambi, Managing Director of Matrix Housing had entered into an agreement and the complaint was bad for non-joinder of the said Arivudai Nambi as a party.;

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