Unrebutted evidence and admissions establish liability for outstanding loan principal, warranting decree with interest.

The Plaintiff, a PET-resin manufacturer, engaged the Defendant, proprietor of M/s Transmart Container Lines, in connection with the transportation and forwarding of PTA consignments from Korea to Haldia Port. Disputes arose when the Defendant’s forwarding agent, M/s T.K.M. Global Logistic Limited, withheld delivery of the consignments allegedly because of unpaid dues of the Defendant. To secure release of the cargo, the Plaintiff paid certain amounts to TKM and Maersk Line and advanced further sums to or on behalf of the Defendant. The Plaintiff alleged that an aggregate sum of Rs.85,00,000 was advanced as a loan, repayable with interest at 18% per annum, and that the Defendant acknowledged the liability and issued cheques towards repayment

The Defendant admitted receiving financial assistance but contended that only Rs.52,00,000 had been advanced, of which Rs.51,48,000 was received after deduction of tax at source. He claimed to have repaid the loan and alleged that the Plaintiff had obtained cheques, undertakings and other documents by force and coercion.

The Defendant did not adduce evidence, and his right to lead evidence had earlier been closed due to repeated absence.

In an earlier judgment on admission, the Court directed the Defendant to deposit Rs.30,50,000 and decreed that amount with interest at 10% per annum. The Defendant failed to make the directed deposit. The remaining claim proceeded to trial, at which the Plaintiff relied on documentary and oral evidence.

The Court treated the original principal liability as Rs.77,50,000, deducted the previously decreed sum of Rs.30,50,000, and adjudicated the balance of Rs.47,00,000.

1. Whether the Plaintiff was entitled to recover the outstanding principal amount claimed from the Defendant, including the balance of Rs.47,00,000 after adjustment of the amount previously decreed on admission.

2. Whether the Plaintiff was entitled to recover interest on the outstanding principal amount and, if so, at what rate.

The Court applied the principle that a party seeking recovery of money must establish the underlying liability through pleadings and admissible oral or documentary evidence. An admission of the lending transaction may support a decree for the admitted amount, while the remaining liability must be proved at trial.

The Court also applied the evidentiary principle that unproved assertions in a written statement do not establish repayment, coercion or discharge of liability, particularly where the defendant leads no evidence. As to interest, the Court enforced the previously determined rate of 10% per annum rather than the Plaintiff’s claimed rate of 18%. No specific statutory provision or precedent was expressly identified in the judgment.

The Defendant’s written statement admitted that the Plaintiff had lent money to him, although it disputed the amount and alleged repayment. The earlier decree on admission had already established liability for Rs.30,50,000.

Since the Defendant did not adduce evidence, his allegations that the loan had been repaid and that the cheques and documents had been obtained by coercion remained unproved. Conversely, the Plaintiff’s oral and documentary evidence, together with the Defendant’s admissions and materials referred to as Exts. L, M, N and O, established the lending transaction and the outstanding liability.

The Court therefore calculated the remaining principal as Rs.47,00,000, being Rs.77,50,000 less the previously decreed Rs.30,50,000. In view of the earlier determination of interest at 10%, the Court awarded interest at that rate from institution of the suit rather than at the claimed rate of 18%.

The Defendant was directed to pay the decretal amount within three months from the date of drawing up of the decree. In default, he would be liable to pay an additional 3% per annum on the principal and capitalised interest from the date of default. The Plaintiff was granted liberty to initiate execution proceedings.