2018 (3) TMI 314

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....ion stands disposed of. RFA 189/2015 2. The Respondent/Defendant (hereinafter, "Defendant‟) was directed to be served through publication vide order dated 22nd January, 2018. None appears for the Defendant and they are proceeded ex-parte. 3. Copy of the publication is taken on record. 4. This is an appeal against the impugned order dated 16th May, 2014 by which the Trial Court has dismissed the suit for recovery of Rs. 3,26,235.58/. The Plaintiff's case is that he had given a loan of Rs. 3 lakhs to the Defendant, in cash, on 1st April, 2008. When the Plaintiff demanded repayment of the loan, the Defendant is alleged to have executed a written agreement/receipt in the presence of two witnesses. Subsequently, the Plaintiff h....

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....s - "I was residing in H. No. 71, Gali No. 3, Braham Puri from last four-five years. At present, I am residing at H. No. I-40A, Gali No. 10, Braham Puri, Delhi from last 4-5 months. On 22.07.2011, I was not residing at the address at H. No. 71, Gali No. 3, Braham Puri. I can not tell the contents of my affidavit Ex.DW1/A. I can not tell the exact place where my signatures were taken by my counsel on the affidavit at points A and B. It is incorrect that I was purchased the plot no. F-94, Rana Chowk, Ram Park, Loni Ghaziabad, UP in the name of my wife Smt. Guddi. It is incorrect to suggest that I have sold the house at present. It is correct that I was residing in front of the house of plaintiff at the time of taking the loa....

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.... The Trial court has held that in view of the provisions of the Income Tax Act, no loan above Rs. 20,000/- could have been given in cash, so the loan transaction is not liable to be recognised. In so far as this is concerned, Sections 269SS and 269T do make it compulsory for persons who accept loan or deposits of about Rs. 20,000/- to accept them only through proper banking channels. The consequence of not doing so could fasten the parties with penalties under the Income Tax Act, 1961 which the Court is not concerned with in these proceedings. The Plaintiff and the Defendant could be in violation of the said provisions which would be gone into by the Income Tax Authorities. Authorities are free to take action against the parties for violati....