N.Vijayakumar Vs C. Ashok — Madras HC (2026) — LawSathi Research

N.Vijayakumar Vs C. Ashok — Madras HC (2026) — LawSathi Research

What the court decided

AI extract

Outcome

Appeal allowed; judgment and decree of the trial Court in O.S.No.108 of 2021 set aside; matter remanded for fresh consideration subject to deposit of the entire suit amount of Rs.20,65,287/- in two installments within two months; deposited amount to be kept in an interest-bearing nationalised-bank deposit and disbursed per the eventual decree; no coercive steps in execution till disposal; trial Court to dispose expeditiously; automatic dismissal and execution to proceed on failure to deposit; no costs; connected miscellaneous petition closed.

Issue for consideration

Whether the plaintiff is entitled to a decree for recovery of money from the defendants as prayed for? +2 more

Ratio / Principle

Considering that the appellants/defendants had not contested the matter by letting in evidence on their side and were ready to deposit the entire suit amount before the trial Court, this Court was inclined to set aside the judgment and decree of the trial Court in order to give them one more opportunity to contest the matter.

Key takeaways

The Appeal is allowed; the impugned judgment and decree of the trial Court are set aside and the matter is remanded back for fresh consideration on condition that the appellants/defendants deposit the entire suit amount of Rs.20,65,287/- in two installments within a period of two months, to the credit of O.S.No.108 of 2021 before the III Additional District Court, Tiruvallur at Poonamallee.ratio¶50
On such deposit being made, the amount shall be re-deposited in any Nationalised Bank in an interest bearing deposit till the suit is disposed of by the trial Court, and thereafter disbursed along with the accrued interest based on the decree and judgment that may be passed in the suit.ratio¶50

Detailed headnote1 paragraphs

High Court of Judicature at Madras (N. Sathish Kumar, J., delivering the judgment; M. Jothiraman, J.), 01.07.2026, A.S.No.635 of 2026 (with connected C.M.P.No.16263 of 2026): Appeal under Section 96 of the Code of Civil Procedure by the defendants (N.Vijayakumar and Vijayalakshmi) against the judgment and decree dated 12.04.2024 of the III Additional District and Sessions Court, Tiruvallur at Poonamallee in O.S.No.108 of 2021, decreeing a money-recovery suit. The suit rested on a promissory note dated 20.06.2020, the plaintiff C.Ashok alleging the defendants borrowed Rs.17,50,000/- repayable with interest at 24% p.a.; a legal notice issued 09.01.2021 was returned unclaimed. The defendants' written statement denied the transaction, asserting they were successful bidders in the plaintiff's monthly chit schemes and that the plaintiff misused a blank promissory note and cheques taken as security. Only the plaintiff's side was proved (P.W.1; Exs.A1-A4); the defendants adduced no evidence. The trial Court decreed payment of Rs.20,65,287/- with interest on Rs.17,50,000/- at 12% p.a. from the date of suit till decree and 6% p.a. thereafter till realisation. On appeal, counsel for the defendants pleaded lack of proper representation below and undertook to deposit the entire suit amount in two installments within two months; the plaintiff's counsel raised no serious objection. Holding that the defendants had not contested the matter by letting in evidence and were ready to deposit the suit amount, the bench allowed the appeal, set aside the judgment and decree, and remanded the matter for fresh consideration conditioned on deposit of Rs.20,65,287/- in two installments within two months to the credit of O.S.No.108 of 2021 before the III Additional District Court, Tiruvallur at Poonamallee; the deposit is to be placed in an interest-bearing deposit in any Nationalised Bank till disposal and then disbursed with accrued interest per the eventual decree; no coercive steps in execution till the suit is disposed of; the trial Court is to dispose of the suit expeditiously; default in deposit within two months entails automatic dismissal of the Appeal and recourse to execution. No costs; connected miscellaneous petition closed.