8 Coming now to the merits of our case, there is, in the first place, an admission of the loan of Rs.10 Lacs. Further, there is a Promissory Note executed by the Defendant in favour of the Plaintiff promising to pay the principal amount of Rs.10 lacs together with interest at the rate of 24 % per annum. The execution of this Promissory Note is not disputed by the Defendant, though the Defendant submits that the purpose of execution of this Promissory Note was not as alleged by the Plaintiff (without indicating what that purpose was). Then, there is also a clear case of dishonour of a cheque. This cheque covered the principal amount and was returned by the drawee bank on 13 April 2000 with the remark “funds insufficient”. Insofar as, this dishonoured cheque is concerned, it is submitted by the Defendant in his affidavit in support of the Notice of Motion that the cheque produced with the plaint was not issued for the purpose of repayment of the principal amount as alleged. Once again, the affidavit is silent on the purpose for which this cheque was issued. It is disclosed in a further affidavit filed by the Defendant – applicant that sometime in September 1994, the Defendant had agreed to purchase from the Plaintiff and his wife, a property situated at Kihim in Maharashtra known as “ Almanzil” on the terms and conditions agreed between the Plaintiff and the Defendant and recorded in two letters addressed by the Plaintiff's wife to the Defendant. These letters are addressed on 13 September 1994 and 20 January 1995. It is further submitted that subsequently as the Defendant's business was bad, he took loans of Rs.36.50 Lacs, Rs.10 Lacs and Rs.10 Lacs from the Plaintiff. It is submitted that since the Defendant could not repay these loans, the Plaintiff had filed a suit and taken out insolvency proceedings, which ultimately accumulated in a settlement arrived at between the Plaintiff and Defendant through the former's family owned company, Tayyabji Holdings and Investments Pvt. Ltd. It is submitted that according to this settlement, the two loans of Rs.36.50 Lacs and Rs.10 Lacs were to be repaid along with interest and the third loan of Rs.10 Lacs was to be written off by adjusting the same towards the consideration of Rs.20 Lacs paid by the Defendant for purchase of Almanzil in Kihim, Maharashtra. The Defendant has
