Kishan Kumar Gupta vs Raj Kumar on 25 April, 2026

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    Delhi High Court

    Kishan Kumar Gupta vs Raj Kumar on 25 April, 2026

    Author: Neena Bansal Krishna

    Bench: Neena Bansal Krishna

                              *      IN THE HIGH COURT OF DELHI AT NEW DELHI
                              %                                          Reserved on: 13th February, 2026
                                                                           Pronounced on: 25th April 2026
                              +              RSA No.150/2024, CM APPL. 47257/2024 (stay)
                              KISHAN KUMAR GUPTA
                              S/o Late Om Prakash Gupta
                              R/o 291/1, D-6, Sector-6, Rohini,
                              Delhi-110085                                             .....Appellant
                                                       Through:      Mr. Galib Kabir, Advocate.
                                                        versus
                              RAJ KUMAR
                              S/o Late Bishan Sarup
                              R/o 3139, Lal Darwaza
                              Bazaar Sita Ram
                              Delhi-110006                                             .....Respondent
                                                        Through:     Appearance not given.
                              CORAM:
                              HON'BLE MS. JUSTICE NEENA BANSAL KRISHNA
                                                        J U D G M             E N T
                              NEENA BANSAL KRISHNA, J.
    

    1. Second Regular Appeal under Section 100 of the Code of Civil
    Procedure, 1908 (hereinafter referred to ‘CPC‟) has been filed on behalf of
    the Appellant against the Judgment dated 14.05.2024, whereby the learned
    District Judge-06, Central District, Delhi in RCA DJ No. 16/2019, has
    upheld the Judgment and Decree dated 18.12.2018 of the learned Civil
    Judge whereby the Suit of the Plaintiff for Recovery of Rs.2,84,500/-, has
    been dismissed.

    2. The Substantial question of Law that arises in the present Appeal is:

    SPONSORED

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    (i) Whether the oral evidence is admissible in the
    teeth of Written Document?

    (ii) Whether findings on oral evidence, in
    contradiction to written document, is contrary to
    S.90/S.91 Indian Evidence Act?

    3. The Plaintiff/Appellant had filed a Suit for Recovery of Rs.2,84,500/-
    along with the pendente lite and future interest @18% p.a. against
    Defendant.

    4. The facts in brief, are that the Plaintiff and the Defendant were well
    known to each other, having previously been residents of Sita Ram Bazar,
    Delhi. The Defendant took a loan of Rs.3,20,000/- on 15.09.2013, stating
    that he was under financial stress as he had purchased a house in August,
    2011 and had also got his son married. The Defendant promised to pay in a
    year‟s time and he also promised to pay interest @18% p.a.

    5. The Defendant failed to pay the loan amount and when the Plaintiff
    insisted, he issued a cheque dated 21.10.2014 for Rs.3,20,000/- in favour of
    the Plaintiff, with an assurance that on presentation, the cheque would be
    encashed.

    6. The cheque, however on presentation for encashment on 16.01.2015,
    was dishonoured with the remarks “Accounts Closed”, vide Return Memo
    dated 19.01.2015. The Plaintiff immediately approached the Defendant for
    the return of loan and also served a demand Notice dated 18.02.2015 asking
    the Defendant to repay the loan amount.

    7. With the intervention of common friends, the dispute was amicably
    settled, and the Defendant agreed to pay a sum of ₹1,10,000/- in lieu of the
    cheque, in instalments. The first instalment of ₹10,000/- was payable on

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    25.03.2015, and subsequent instalments of an equal amount, were to be paid
    on a monthly basis, commencing from 01.05.2015.

    8. The parties entered into a Settlement dated 16.03.2015, in the
    presence of witnesses. Clause 4 of the said Settlement provided that, in the
    event of the Defendant‟s failure to pay two consecutive instalments, the
    Plaintiff would be at liberty to claim the entire loan amount of ₹3,20,000/-.
    The Defendant paid five instalments of ₹10,000/- each from 25.03.2015 till
    August 2015, and one further instalment on 05.10.2015, thereby paying a
    total sum of ₹60,000/-. However, the Defendant failed to pay any
    instalments from October, 2015 onwards and thus, failed to honour the
    Settlement dated 16.03.2015.

    9. In view of the Defendant‟s default, the Plaintiff became entitled to
    recover the entire loan amount of ₹3,20,000/- along with interest. However,
    after adjusting the sum of ₹60,000/- already received, the Plaintiff was
    entitled to balance amount of ₹2,60,000/- along with interest @18% per
    annum. The Plaintiff thus, filed the present suit for recovery of ₹2,84,500/-
    along with pendente lite and future interest @18% per annum.

    10. The Defendant, in the Written Statement, contended that the
    Plaintiff has not disclosed any cause of action, as the averments made in the
    Plaint are contrary to the documents on record. It was further contended that
    the present litigation has been initiated solely to harass the Defendant.

    11. The Defendant also asserted that the Suit has not been properly
    valued for the purpose of jurisdiction and court fees. Additionally, it was
    alleged that the Plaintiff is a professional money lender, who has played
    fraud upon innocent persons including the Defendant, and being unlicensed,
    was not entitled to advance loans.

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    12. The Defendant asserted that the true and material facts are that the
    Defendant is educated only up to Class 2 and is an uneducated person. He
    earns his livelihood by selling „chole kulche’ on a rehri at Chawri Bazar,
    Delhi. The Defendant had taken a loan in the year 2010, being in need of
    money. On the insistence of the Plaintiff, the Defendant issued a blank
    signed cheque bearing No. 654606, drawn on SBI, Asaf Ali Branch, New
    Delhi; however, he received only a sum of ₹20,000/-.

    13. The Defendant further claimed that, being an uneducated and god-
    fearing person, he started repaying the said loan amount of ₹20,000/- in
    instalments, as agreed between the parties, at the time of advancement of the
    loan. It was also asserted that the Plaintiff used to maintain a record of the
    amounts received from the Defendant.

    14. It was further alleged that on 09.06.2014, the Plaintiff assaulted the
    Defendant and demanded a sum of ₹2,00,000/-, despite the Defendant
    having protested that only a balance of ₹20,000/- was due. The Defendant
    claimed that he was again assaulted at the house of one Mr. Raju (Makhan
    Wala), whereupon on the next day, i.e., 10.06.2014, he lodged a Police
    Complaint at 09:45 a.m. vide DD No. 24-B.

    15. Pursuant thereto, the matter was claimed to have been amicably
    resolved between the parties, wherein it was agreed that the Defendant had
    to repay only a sum of ₹20,000/-. The Defendant being a god-fearing
    person, accepted the proposal and undertook to return the loan amount.

    16. The Defendant further asserted that in January, 2015, he sought the
    return of his cheque from the Plaintiff, who advised him to visit his
    Advocate’s chamber for execution of a cancellation document, upon which
    the cheque would be returned. It was in these circumstances that the

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    Settlement dated 16.03.2015 came to be executed, which, according to the
    Defendant, was fraudulent and involuntary.

    17. The matter was thereafter, settled for a sum of ₹1,10,000/-, out of
    which ₹60,000/- was paid by him up to 05.10.2015 and the balance
    ₹50,000/- in November, 2015, in cash. Despite such payment, and repeated
    requests made by the Defendant, including a written endorsement on the
    reverse of the Loan Agreement, the Plaintiff failed to return the cheque, on
    the pretext that it was in the custody of his Advocate for initiating legal
    proceedings.

    18. The Defendant claimed that he had received only a sum of ₹20,000/-,
    but had repaid more than ₹4,00,000/-. The Defendant further contended that
    the present suit is false and frivolous and is liable to be dismissed on merits.
    All the averments made in the Plaint were denied, and the preliminary
    objections raised in the Written Statement, were reiterated.

    19. The Plaintiff in his Replication, reaffirmed the averments of the
    Plaint and denied those in the Written Statement. It was specifically clarified
    that the entries in Annexure A pertained to an earlier loan transaction of
    2010-2011 and not to the present loan of 15.09.2013, and that the Settlement
    of ₹1,10,000/- in lieu of the loan of ₹3,20,000/- was arrived at through the
    intervention of common friends, in view of the Defendant’s representation of
    his inability to pay the entire amount.

    20. The learned Civil Judge framed the Issues, which are as under: –

    (i) Whether the plaintiff is entitled to a decree in the sum of
    Rs.2,84,500/- as prayed for? OPP

    (ii) Whether the present suit is not maintainable being filed
    without any cause of action? OPD

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    (iii) Relief.

    21. The Plaintiff examined himself as PW-1 and proved the cheque dated
    21.10.2014 for Rs.3,20,000/- as Ex.PW-1/1. The cheque return memo, the
    receipt and the Legal Notice, Settlement dated 16.03.2015 were exhibited as
    Ex.PW-1/2 to Ex.PW-1/12.

    22. PW-2, Mr. Manohar Lal corroborated the testimony of the Plaintiff.

    23. The Defendant examined himself as DW-1 and reiterated his defence
    as contained in the Written Statement.

    24. DW-2, Mr. Raj Kumar Sharma from the State Bank of India,
    produced the Statement of Account as Ex. DW-2/1.

    25. DW-3, ASI Prabhu Dayal, proved the Police Complaint dated
    10.06.2014 as Ex. DW-3/A.

    26. The learned Civil Judge, on appreciation of the evidence, concluded
    that though the Plaintiff claimed to have granted the loan of Rs. 3,20,000/-
    on 15.09.2013, the cheque Ex. PW-1/1 was issued much later, on
    21.10.2014. It was observed that if the Plaintiff’s version that the loan was
    repayable in a year’s time were to be accepted, the demand for return ought
    to have been made around 15.09.2014 and there was no occasion for the
    Defendant to issue the cheque only in October, 2014.

    27. The learned Civil Judge further took note that the Plaintiff had
    admitted, in his cross-examination, that the cheque was given to him on
    15.09.2013 itself which, in the view of the learned Civil Judge, contradicted
    the Plaintiff’s own pleaded case. The testimony of PW-2, Mr. Manohar Lal,
    was also not accepted.

    28. The reference was made to the testimony of Defendant, to observe
    that there was a doubt about the Plaintiff‟s version of advancement of loan

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    on the given date and also of the duly filled blank cheque being given by the
    Defendant on the date of advancement of loan, which probabilized that the
    version of the Defendant that no loan was ever advanced, was correct and
    the blank cheque had been misused by the Plaintiff.

    29. Adverting to the Settlement Ex. PW-1/7 dated 16.03.2015, the learned
    Civil Judge observed that the said Settlement had been executed in the office
    of the Plaintiff’s Advocate, in the presence of PW-2 who had also deposed
    in favour of the Plaintiff, but in the absence of any witness on behalf of the
    Defendant, which in the view of learned Civil Judge, cast a doubt upon its
    voluntariness.

    30. The fact that the Plaintiff had agreed to settle for Rs. 1,10,000/-
    against an alleged loan of Rs. 3,20,000/-, without any interest, was also held
    to be improbable. Clause 4 of the Settlement, providing for revival of the
    entire loan amount of Rs. 3,20,000/- upon default of two instalments, was
    held to be unconscionable and in the nature of a penalty, and the Settlement
    was thus, held not to be voluntary, particularly keeping in view that the
    Defendant was an illiterate person who did not know English.

    31. It was further observed that the Plaintiff had admittedly received
    Rs.50,000/-,but the cheque was not returned by the Plaintiff. The testimony
    of the Plaintiff was, therefore, disbelieved and the case of the Plaintiff for
    Recovery, was dismissed.

    32. The Plaintiff preferred RCA DJ No. 16/19, challenging the dismissal
    of his suit. The learned District Judge reappreciated the evidence led by
    the parties, and concurred with the findings regarding contradictions in the
    Plaintiff‟s case, and found no merit in the appeal, which was accordingly
    dismissed.

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    33. Aggrieved by the dismissal of the appeal, the present Regular Second
    Appeal has been filed.

    34. The grounds of challenge are that, under the subsequent Settlement
    Agreement, there was an admission of liability by the Defendant, and the
    said document was duly signed by both the parties. It is contended that the
    Settlement Agreement contained all the terms of the contract and any oral
    evidence contrary to its terms, is inadmissible, in support of which reliance
    has been placed on Tamil Nadu ElectricityBoard v. N. Raju Reddiar (1996)
    4 SCC 551, and Smt. Vidyawati v. Hans Raj AIR 1993 Del 187.

    35. The grievance raised is that vital and material issues were neither
    framed nor considered by the learned Appellate Court. The learned
    Appellate Court was required to examine whether the Settlement Agreement
    dated 16.03.2015 was binding on the parties; whether the Plaintiff was
    entitled to recover the principal amount of ₹2,60,000/- after adjusting the
    sum of ₹60,000/- paid by the Defendant; and whether, after admitting the
    Settlement Agreement and making payment of six instalments pursuant
    thereto, the Defendant could deny the Agreement and its terms.

    36. The Appellant further submitted that the Plaintiff had settled the
    matter with the Defendant for a sum of ₹1,10,000/- out of his generosity,
    despite having advanced a loan of ₹3,20,000/-. It was argued that the
    decision of the learned Appellate Court is not based on proper consideration
    of issues and evidence.

    37. It was further urged that it was immaterial whether the cheque was
    issued on 15.09.2013 or 21.10.2014, when the Defendant had admitted
    having issued the cheque to the Appellant in discharge of his loan liability.
    The Defendant is stated to have admitted having taken a loan of ₹3,20,000/-

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    in the Settlement Agreement dated 16.03.2015 Ex. PW-1/7, and any finding
    to the contrary, is erroneous.

    38. A prayer is thus, made that the impugned judgment dated 18.12.2018
    of the learned Civil Judge and the judgment dated 14.05.2024 of the learned
    Appellate Court, affirming the dismissal of the Suit, be set aside and the Suit
    of the Plaintiff be decreed.

    Submissions heard and the record perused.

    39. It is an admitted fact that the Plaintiff and the Defendant were known
    to each other since long and the Defendant was also a resident of Sita Ram
    Bazar, Delhi, where Plaintiff had also resided for a long time.

    40. The case of the Plaintiff was that on account of the marriage of his
    son and for construction of his house, the Defendant came under financial
    strain and eventually took a loan of ₹3,20,000/- from the Plaintiff on
    15.09.2013. The factum of having taken a loan stands fully corroborated
    from the admission of the Defendant in the cross-examination that he had
    got his son married and constructed the house in the year 2011. His own
    admissions reflect that the Defendant was under financial constraint and had
    to pay money to others. Consequently, he took a loan of ₹3,20,000/- from
    the Plaintiff, in 2013.

    41. The second aspect which emerges from the evidence of the parties is
    that, admittedly, a cheque dated 21.10.2014 had been given by the
    Defendant to the Plaintiff, though he had asserted that it was a blank cheque
    given by him; however, it is only a bald assertion and is not corroborated by
    any cogent evidence.

    42. It is also pertinent to note that the consistent stand of the Defendant
    was that he had taken a loan, though he claimed it to be of ₹20,000/-. If the

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    loan was of ₹20,000/-, there was no reason or occasion for him to have
    issued the cheque dated 21.10.2014, Ex. PW-1/1, for a sum of ₹3,20,000/-.
    These documents are admitted by the Defendant, though his oral testimony
    is only of simpliciter denial and a vague defence of the loan having been
    taken as ₹20,000/-, though the cheque was issued.

    43. Pertinently, the Plaintiff had explained that though the loan was taken
    in September, 2013 with an assurance that the Defendant would return the
    loan amount within a year or so and had also promised to pay interest @18%
    p.a., if he failed to discharge his obligation. The Plaintiff had consequently
    approached him for return of the loan, whereupon the Defendant issued the
    cheque dated 21.10.2014.

    44. There is absolutely no contradiction or discrepancy in the testimony
    of the Plaintiff, which stands fully corroborated by the corresponding
    documents. The observations of the learned Civil Judge, as endorsed by the
    learned ADJ, that if the loan was repayable after one year of its
    advancement, the demand ought to have been made in March-April 2014,
    and that it was not understandable why a person would issue a cheque in
    October 2014, does not appear to be well-founded.

    45. It has been overlooked that both the Plaintiff and the Defendant were
    well known to each other and, apparently, there had been a close association.
    As per the testimony of the Plaintiff, he had been approaching the
    Defendant, who eventually gave the cheque in October/November 2014. The
    loan taken in September, 2013, was to be returned in one year, and therefore,
    giving of cheque in October 2014, is reasonable. There is absolutely no
    contradiction, as has been observed by the learned Civil Judge and the
    learned District Judge.

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    46. It is further the deposition of the Plaintiff that the cheque was
    presented for encashment on 16.01.2015, but the same was returned vide
    Memo Ex. PW-1/2 for the reason “Account Closed” on 19.01.2015. Again,
    the cheque, as well as the return memo, establishes the issuance of the
    cheque by the Defendant, in discharge of his loan liability. In fact, the
    defendant had also not denied issuing the cheque. The findings of the
    learned Civil Judge and the learned ADJ are contrary to the documents
    proved on record.

    47. Further, the Plaintiff had deposed that, when he kept on approaching
    the Defendant and the loan amount was not repaid, the parties eventually
    entered into a formal Written Settlement dated 16.03.2015, Ex. PW-1/7,
    which was got prepared through an Advocate.

    48. The Defendant has not denied the execution of the Settlement. It was
    recorded in the Settlement that even though the loan taken was of
    ₹3,20,000/-, the Plaintiff agreed to settle it for ₹1,10,000/-, on the condition
    that the same would be repaid in 11 equal consecutive instalments of
    ₹10,000/- each. It was further agreed that in case there was a default of two
    or more instalments, the Plaintiff would become entitled to claim his earlier
    loan of ₹3,20,000/-. These are the express terms of the Settlement, which
    admittedly bears the signatures of the Defendant. Not only this, the
    Defendant duly acted upon this Settlement and admittedly paid six
    instalments of ₹10,000/- from 25.03.2015 till 05.10.2015.

    49. The Defendant further asserted that the balance amount of ₹50,000/-
    had been paid by him in cash, though there is absolutely no proof thereof.
    When the first six instalments had been duly endorsed on a paper, there is no

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    reason for the alleged payment of ₹50,000/- not being similarly endorsed or
    evidenced by any written document.

    50. It is established from the testimony of the Defendant himself that he
    had paid ₹60,000/- pursuant to the Settlement, Ex. PW-1/7, but again
    defaulted in making the balance payment of ₹50,000/- in terms of the
    Settlement.

    51. Reliance has been placed on M/s Unikol Bottlers Ltd. v. M/s Dhillon
    Kool Drinks & anr. 1994 (28) DRJ, wherein, it was observed that where a
    plea of coercion, undue influence or unequal bargaining power is taken, the
    party must set out full particulars thereof. Bald and vague allegations,
    unsupported by material particulars, are of no consequence. It was further
    observed that for a valid contract, it is essential that the parties give their
    free consent. Section 10 of the Indian Contract Act, 1872 statutorily
    recognises the requirement of free consent for a valid contract. For the
    purpose of ascertaining whether the parties exercised free will while
    entering into the Settlement, the following factors are required to be looked
    into: –

    (i) Did the defendant protest before or soon after the
    agreement?

                                              (ii)    Did the defendant take any steps to avoid the
                                                      contract?
    
    

    (iii) Did the defendant have an alternative course of
    action or remedy? If so, did the defendant pursue
    or attempt to pursue the same?

    (iv) Did the defendant receive benefit of independent
    advice?

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    52. In the case of M/s Unikol Bottlers Ltd, (supra) it was found that the
    Defendant never made any protest before entering into the Agreement or
    even thereafter; on the contrary, he affirmed the agreement and proceeded
    with its performance. It was thus, concluded that contracts are meant to be
    performed and not avoided. Justice requires that parties who have negotiated
    at arm‟s length, be held to their bargains, unless it can be shown that their
    consent was vitiated by fraud, mistake, or duress.

    53. The principles as enumerated in M/s Unikol Bottlers Ltd (supra),
    applies squarely to the present case.

    54. The plea of the Defendant that he was illiterate and that the Settlement
    was involuntary, cannot be countenanced. If the Settlement was truly
    coercive, there was no reason for the Defendant to have acted upon it by
    paying six consecutive instalments of Rs. 10,000/- each, spread over a
    period of nearly seven months, instead of lodging a protest or issuing a
    notice to the Plaintiff. The conduct of the Defendant is, therefore, clearly
    inconsistent with his stand of coercion and is a complete answer to the plea
    of involuntariness.

    55. It is also relevant to notice that the Plaintiff served upon the
    Defendant a Legal Notice dated 22.12.2015, Ex. PW-1/8, the receipt of
    which has been admitted by the Defendant in his cross-examination. The
    Defendant has also admitted that despite receiving the said Notice, he did
    not send any reply. The failure of the Defendant to reply to the Legal Notice,
    when the alleged coercion or the alleged payment of Rs. 50,000/- could
    easily have been asserted therein, belies his defence and raises an inference
    against him.

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    56. On the contrary, the case of the Plaintiff stands duly supported by the
    documents on record, including the Cheque, the Return Memo, the
    Settlement and the Legal Notice, whereas the defence of the Defendant rests
    on bald assertions, unsupported by any document whatsoever.

    57. The fundamental principle of law, that the recitals in a written
    document take precedence over oral testimony, is no longer res integra. In
    V. Anantha Raju v. T.M. Narasimhan, (2021) 17 SCC 165, the Hon’ble
    Supreme Court, following its earlier decision in Roop Kumar v. Mohan
    Thedani
    , (2003) 6 SCC 595, reiterated that where a contract is reduced to
    writing, Sections 91 and 92 of the Indian Evidence Act, 1872 bar any oral
    evidence seeking to contradict, vary, add to or subtract from the terms of
    such writing. Written instruments are entitled to a much higher degree of
    credence than oral testimony, for they are presumed to be the final and
    deliberate expression of the parties’ intentions and are not to be disturbed by
    the “slippery memory” of subsequent oral statements.

    58. The Settlement Agreement Ex. PW-1/7 dated 16.03.2015 bears the
    admitted signatures of the Defendant and contains the complete terms of the
    compromise between the parties, including the loan amount, the settled
    amount, the schedule of instalments and the consequence of default. The
    attempt of the Defendant to contradict these express terms by oral testimony
    of an earlier loan of Rs. 20,000/- is, therefore, impermissible in law.

    59. It may thus, be concluded that the fundamental principle of law that
    the recitals in a written document take precedence over oral testimony has
    been completely overlooked by the learned Civil Judge as well as the
    learned District Judge, while upholding the dismissal of the suit of the

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    Plaintiff. There is a serious illegality in law committed by both the learned
    Civil Judge as well as the learned District Judge.

    60. It is, therefore, concluded that since the Defendant had entered into
    the Settlement dated 16.03.2015, Ex. PW-1/7, and had partially acted upon
    it, and thereafter committed breach, he is bound by the terms of the
    Settlement. Clauses 3 and 4 of the Settlement read as under:

    “3. That if the first party fails to pay the first
    instalment on 25.03.2015, the second party shall be at
    liberty to proceed in law court and claim Rs.3,20,000/-
    with interest and cost instead of Rs.1,10,000/-.

    4. Further it is agreed that in the event of any two
    consecutive defaults in payment of instalments, the
    second party shall be at liberty to claim Rs.3,20,000/- of
    loan amount as per law.”

    61. Since the Defendant/Respondent, without any justification, has
    committed breach of the terms of the Settlement and has failed to make
    further payments after paying six instalments in terms of Clause (4) of the
    Settlement, the Plaintiff is entitled to recovery of ₹2,60,000/-.

    62. Considering the long duration and the relationship between the
    parties, pendente lite and future interest @ 5% p.a. is awarded to be paid till
    the realization of the suit amount.

    63. The impugned judgment dated 18.12.2018 passed by the learned Civil
    Judge and the judgment dated 14.05.2024 passed by the learned Appellate
    Court are hereby set aside, and the suit of the Plaintiff is decreed in the sum
    of ₹2,60,000/-, along with pendente lite and future interest @ 5% p.a. till the
    payment of the decretal amount.

    64. Decree Sheet be prepared accordingly.

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    65. The Appeal is disposed of accordingly. The pending Applications, if
    any, also stand disposed of.

    (NEENA BANSAL KRISHNA)
    JUDGE
    APRIL 25, 2026/RS

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