K. S. Gupta ( 1 ) IN the suit Filed by plaintiff for recovery of Rs. 6,48,000. 00 under the provisions of Order XXXVII Civil Procedure code based on two cheques for a total amount of Rs. 4,50,000. 00 issued by defendant, the defendant has filed this application supported by her affidavit seeking leave to defend the suit. In the affidavit it is averred that defendant is the sole proprietor of firm M/s. C. K. Films and she is engaged in, the business of distribution and exhibition of films. Defendant had acquired rights of distribution and exhibition of film sapnay for the territories of Delhi and UP from M/s. Gramco Films. Plaintiff through her father R. P. Bhasin approached the defendant for entering into a Joint venture Agreement alongwith her brother Raman Bhasin for distributing the said pic- ture. After joint venture agreement was signed between the parties, the father of plain- tiff wanted to withdraw from joint venture agreement as the film was not doing well. Keeping in view past relationship, the defendant agreed to cancel said agreement but as she had incurred financial obligations on the basis of commitments of plaintiff and her brother through their father for paying royalty, it was agreed that the amount paid by plaintiff and her brother would be refunded in instalments. Accordingly, an agree- ment was drawn sometime in the last week of May 1997 whereby the defendant agreed to refund the amount of Rs. 15,65,000. 00 in full and final settlement of their accounts rs. 1,65,000. 00 were paid in cash. At the time of execution of agreement the father of plaintiff got a bank account of the defendant opened in Anand Lok branch of Al- lahabad Bank as this branch was next door to his office representing that it would be easier for him to transact business as the bank staff of that branch was known to him. In good faith the defendant also handed over almost entire cheque book duly signed by her in blank of the said bank account on the understanding that if any amount would be required to be paid by defendant in connection with said agreement, the same could be withdrawn from bank account by the father of plaintiff. In good faith the defendant also handed over almost entire cheque book duly signed by her in blank of the said bank account on the understanding that if any amount would be required to be paid by defendant in connection with said agreement, the same could be withdrawn from bank account by the father of plaintiff. It is further averred that the father of plaintiff approached the defendant and her attorney and ob- tained following account payee cheques in favour of his son Raman Bhasin repre- senting that adjustment of amounts thereof was their internal family matter :- ( 2 ) IT is stated that after the defendant came to know about the withdrawal of amounts of cheque Nos. 188318,188319 and 188320 all dated 6/6/1997 in the sum of Rs. 1 lakh each from said Anand Lok branch of Allahabad Bank, the father of plaintiff on being confronted, admitted the withdrawal of Rs. 3 lakhs against said che- ques and he agreed to adjust this amount in the account of plaintiff and her brother. Accordingly, the whole issue was finally settled and entire payment against said agree- ment stood paid. Cheque issued in the name of brother of plaintiff in 1998 for Rs. 25,000. 00 was towards the interest accrued on delayed payment. It is further averred that the father of plaintiff still not satisfied got this suit filed through the plaintiff with maid fide intentions. Liability to pay interest at the rate of 2% p. m. as claimed by plaintiff is emphatically denied, ( 3 ) IN the counter affidavit Filed alongwith reply by the plaintiff it is stated that for all practical purposes R. P. Bhasin has no connection with Joint Venture Agreement and he has been unnecessarily dragged by the defendant causing embarassment to him. Two cheques for a total amount of Rs. 4,50,000. 00 were issued by the defendant towards admitted outstanding amount which was liable to be paid to the plaintiff. In response to averments made in Para No. 9 of the affidavit of defendant the plaintiff in para No. TO of counter affidavit has not denied encashment of 7 account payee che- ques of the total amount of Rs. 11,25,000. 00 by Raman Bhasin as also withdrawal of amount of Rs. 3 lakhs against three cheques dated 6/6/1997 by plaintiffs father. from the account of defendant in Anand Lok branch of Allahabad Bank. 11,25,000. 00 by Raman Bhasin as also withdrawal of amount of Rs. 3 lakhs against three cheques dated 6/6/1997 by plaintiffs father. from the account of defendant in Anand Lok branch of Allahabad Bank. ( 4 ) I have heard Sh. Sushil Chauhan for defendant and Sh. Harish Malhotra for plaintiff and have also been taken through the record. ( 5 ) UNDATED agreement whereby the defendant agreed to refund amount of Rs. 15,65,000. 00 to the plaintiff and her brother Raman Bhasin, two cheques which are the basis of suit and copy of legal notice dated 13/9/1997 sent to the defendant, filed by the plaintiff are placed on Part III file. In the absence of rebuttal by plaintiff, there seems to be, prima facie, no reason to disbelieve the defendant that said agree- ment was drawn sometime in the last week of May 1997 as averred in her affidavit. As may be gathered from this agreement towards payment of balance amount of Rs. 14 lakhs out of said amount of Rs. 15,65,000. 00, 9 undated cheques all drawn on Anand lok branch of Allahabad bank were issued by the defendant and amounts thereof were to be paid by 31/08/1997 failing which the defendant was liable to pay in- terest @ 2% per month on entire balance amount with effect from 31/08/1997. 7 of these cheques were in the name of Raman Bhasin, brother of plaintiff while remain- ing 2 for a total amount of Rs. 4,50,000. 00 in the name of plaintiff. It may further be gathered from said agreement that plaintiff and her brother had agreed to accept aforesaid amount of Rs. 15,65,000. 00 towards full settlement of their account in the joint venture partnership business with defendant. Aforesaid notice dated 13/9/1997 demanding payment of Rs. 12 lakhs with interest was issued to the defendant on behalf of plaintiff and her said brother. Neither the said agreement nor legal notice specify the break up of the amount to be paid to plaintiff and/or her brother. Assum- ing that the brother of plaintiff was entitled to receive only Rs. 9,50,000. 00 being amount of 7 cheques referred to in said agreement, sum of Rs. 1,75,000. 00 received over and above the amount of Rs. 9,50,000. Assum- ing that the brother of plaintiff was entitled to receive only Rs. 9,50,000. 00 being amount of 7 cheques referred to in said agreement, sum of Rs. 1,75,000. 00 received over and above the amount of Rs. 9,50,000. 00 in the manner set out in Para No. 9 of the affidavit of defendant, could not be towards interest @ 2% per month on that amount of Rs. 9,50,000. 00 which came to be paid within less than 2 months period after 3 1/08/1997 upto which settled amount was to be refunded by the defendant. Taking note of said facts as also the pleas raised in application under disposal, I am of the view that defendant is entitled to be granted unconditional leave to defend the suit.