₹9 Lakh Loan Dispute Settled For ₹7 Lakh; Madras HC Directs Defendant To Pay Remaining ₹6 Lakh In Three Instalments

The plaintiff sued to recover ₹9,00,000, alleging that he had advanced that amount to the defendant against a cheque.

The defendant maintained that he had borrowed only ₹3,00,000 from the plaintiff’s father and was liable only for that amount with agreed interest.

The trial court decreed the suit, and the first appellate court affirmed the decree.

The defendant appealed under Section 100 of the Code of Civil Procedure.

During the appeal, he deposited ₹1,00,000 towards the execution proceedings pursuant to an interim order.

The parties later filed a joint compromise memo agreeing to settle the dispute for ₹7,00,000, inclusive of interest.

The appeal was brought under Section 100 of the Code of Civil Procedure.

The Court did not decide any substantial question of law or discuss statutory provisions or precedents governing the underlying debt dispute.

It recorded the parties’ joint compromise and made it part of the judgment and decree, directing that the concurrent decrees stand modified in accordance with that compromise.

The Court noted that the parties had amicably settled the dispute and had jointly filed a compromise memo, signed by the parties and their counsel, under which the defendant agreed to pay ₹7,00,000 in full and final settlement.

Accordingly, rather than determine the underlying dispute about the amount borrowed, the Court disposed of the appeal on the agreed terms and modified the lower courts’ decrees.

The Court directed the defendant to pay the remaining ₹6,00,000, after crediting the ₹1,00,000 already deposited, in three instalments of ₹2,00,000 due by 9 January, 9 March and 9 May 2027.

The plaintiff may withdraw the deposited amounts, including the earlier deposit, subject to the Execution Court’s orders; the defendant is entitled to a court-fee refund subject to applicable law, and there was no order as to costs.