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IN THE COURT OF THE ADDITIONAL SENIOR CIVIL JUDGE – CUM –
ADDITIONAL ASSISTANT SESSIONS JUDGE AT KARIMNAGAR.
Present:Smt. K.RANI, Addl. Senior Civil Judge – cum – Addl.Asst. Sessions Judge,
K A R I M N A G A R.
FRIDAY, THIS THE 24th DAY OF OCTOBER, 2025.
ORIGINAL SUIT No.65 of 2019.
Between: Gade Ramu S/o Chakrapani, Age:43 Years, Occ:Private Employee, R/o H.No.9- 3-219/1, Srinagar Colony, Karimnagar. … Plaintiff
A N D Puttapaka Srinivas S/o Rajaiah, Age:36 Years, Occ:Business R/o H.No.5-6- 123/2/2, Mallikharjuna Nilyam Housing Board Chowrasta, Maruthinagar locality, Karimnagar Town. … Defendant
This suit is coming on 08.10.2025 before me at the stage of final hearing in the presence of Sri. K.V.Venugopal Rao, Advocate for plaintiff and Sri Rai Kanakaiah, Advocate for defendant and having been heard and having stood over till this day for consideration, this Court delivered the following:
: : J U D G M E N T : :
This suit has been filed by the plaintiff for recovery of hand loan amount of Rs.8,56,000/- (Rupees Eight Lakhs Fifty Six Thousands Only) together with interest (Rs.5,00,000/- principal amount and Rs.3,55,000/- Interest from 20.04.2016 to 06.04.2019 {35 months 15 days}), cost of legal notice of
Rs.1,000/- from defendant.
2.The brief averments of the plaint are as follows: .
(a).The defendant introduced personally to plaintiff in the year, 2009 as being
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real estate and finance business at Maruthinagar locality of Karimnagar town and become a good friend and maintain good faith and close intimacy with the plaintiff. On 04.05.2013, the defendant approached the plaintiff and asked hand loan for an amount of Rs.2,00,000/- for the purpose of business and family needs @ interest 24% per annum, for a period of one year or on demand of plaintiff.
That the plaintiff by agreeing the same paid amount of Rs.2,00,000/- (Rupees
Two Lakhs Only) through Cheque bearing No.003653 on 04.05.2013, drawn on
Central Bank of India, Karimnagar towards the said loan amount, the defendant executed a promissory note for a sum of Rs.2,00,000/- in the presence of two attestors namely G.Ramesh and R.Eshwar.
(b)That on 15.06.2013 again on the request of defendant, the plaintiff advanced Rs.1,00,000/- (Rupees One Lakh Only) in cash to defendant for the period of one year or on demand of the plaintiff, the defendant also executed promissory note for Rs.1,00,000/- separately apart from first loan amount of
Rs.2,00,000/-.
(c)Later on the demand of plaintiff to pay the due loan amount with interest, then the defendant got issued a cheque on 20.06.2013 bearing No.005474 drawn on Bank of India payable at Karimnagar for an amount of Rs.2,25,000/-, in part of principal loan amount of Rs.3,00,000/-. On presenting the said cheque by the
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plaintiff in his bank, the same was returned for the reason "INSUFFICIENT
FUNDS". That on 20.09.2013 again the defendant got issued another cheque bearing No.032583, drawn on Union Bank of India at Karimnagar for amount of
Rs.2,18,000/- in part of principal loan amount of Rs.3,00,000/-. The defendant also issued third cheque on 30.09.2013 bearing No.032588, drawn on Union
Bank of India at Karimnagar for amount of Rs.2,00,000/- in part of principal loan amount of Rs.3,00,000/-. On presenting the said cheques by plaintiff, returned for the reason "INSUFFICIENT FUNDS". The plaintiff informed the same to defendant but he requested to pay the principal loan amount and interest of
Rs.3,00,000/- in one month.
(d)That the completion of said period, on the demand made by plaintiff for repayment of loan amount, the defendant got issued a cheque bearing No.003597
dated:16.06.2014 drawn on State Bank of India at Karimnagar for an amount of
Rs.3,76,000/- with interest, the same also returned. Then the plaintiff demanded the defendant but the defendant postponed the same and not paid said principal amount of Rs.3,00,000/-, with interest. The defendant finally came to the plaintiff house and requested further time to pay the said amount with interest and further defendant got executed promissory note on 20.04.2016 by calculating principal amount of Rs.3,00,000/- with interest its come to Rs.5,00,000/- in the presence of two attestors namely Khaja Masiuddin and B.Raju and defendant requested to
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pay within six months, but defendant again failed to repay the said amount in time. Finally the defendant got issued a cheque bearing No.047910 for principal amount of Rs.5,00,000/- and asked to pay the interest later. On the request of defendant, plaintiff received the said cheque by accepting the same and presented in the bank but the same was also returned by the plaintiff bank namely Central
Bank of India, Karimnagar, with memo mentioned "FUNDS INSUFFICIENT".
(e)The plaintiff got issued a legal notice to defendant demanded to pay cheque amount within the time, but defendant not responded nor paid cheque amount. Then the plaintiff filed a complaint under the 138 of Negotiable
Instrument Act, unfortunately that the case was dismissed by the Special
Magistrate Court, Karimnagar on 04.01.2019 observed that the notice under
Section 138 of Negotiable Instrument Act un-served to the defendant and served to another person, the copy of judgment filed herewith.
(f)The plaintiff preferred an appeal against the impugned judgment passed by the Special Magistrate Court, Karimnagar, same was pending before the Hon'ble
High Court of Telangana at Hyderabad vide Criminal Appeal No.102 of 2019.
(g)On 18.02.2019 the plaintiff got issued a legal notice to the defendant through the Registered Post with Acknowledge due demanded to pay the
principal amount of Rs.5,00,000/- (Rupees Five Lakhs Only) together with
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interest thereon at 24% per annum and Rs.1,000/- being cost of this legal notice, the said registered post is returned stating that the defendant unclaimed. The defendant even after knowing the legal notice he failed to pay the amount due to the plaintiff as demanded. The plaintiff is compelled to file this suit for amount of
Rs.8,56,000/- (Rupees Eight Lakhs Fifty Six Thousands Only) with interest.
Hence, the suit.
3.Summons were served on defendant. Defendant filed Written Statement by denying the plaint averments and further submitted that, the defendant is borrowed an amount of Rs.4,00,000/- (Rupees Four Lakhs Only) in twice and the plaintiff intentionally got executed a separate register GPA vide document
No.7566 of 2011 dated:09.08.2011 and after that the plaintiff illegally got executed a registered sale deed vide document No.12001 of 2013,
dated:18.11.2013 in favour of his wife namely Kotagiri Soujanya D/o Nagaiah
and not mentioned his name as a husband in the said sale deed but the said
Soujanya Aadhar card is clearly showing that, the said Soujanya is a wife of plaintiff and the matter is suppressed to the defendant, the defendant by approaching the plaintiff paid entire amounts to him, after that the plaintiff re- registered the defendant land properties through a registered GPA deed by his wife vide document No.10921 of 2015 dated:06.11.2015 after receipt of said all loan amounts. But the plaintiff not returned the said plaint promotes and blank
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cheques to the defendant and created concocted stories and requested the defendant to return the said all documents after the trace out and made defendant to believe and got executed a registered sale deed by plaintiff's wife in defendant's favour and the defendant filed certified copies of documents along with his written statement.
3(i)The defendant came to know that the present suit is decreed in favour of the plaintiff and the defendant approached his counsel and filed a petition
I.A.No.79 of 2021 and I.A.No.80 of 2021 and the same are allowed by this Court with cost of Rs.10,000/- and the said amount is paid to the plaintiff and after that said I.A.s are allowed and the plaintiff is filed a separate Execution Petition No.9 of 2021 and Execution Petition No.21 of 2021 are dismissed which is filed by the plaintiff after getting this suit in exparte orders.
3(ii)That the plaintiff with illegal and malafied intention filed this false suit by non returning the said promotes and cheques to the defendant and the plaintiff suppressed material facts and approached this Court with mud hands. That the plaintiff is not entitled for the suit amount and prayed to dismiss the suit with costs.
4.During the course of trial, plaintiff examined himself as PW1 and got marked Ex.A1 to A13. On behalf of plaintiff one Khaja Masisuddin examined as
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PW.2. On the other hand the defendant examined himself as DW.1 and got marked Ex.B1 to B3. On behalf of defendant one Gadala Srinivas examined as
DW.2 and Devunuri Ramesh examined as DW.3.
5.Heard both sides and perused the material available on record, following issues are framed:
1. Whether the suit pro-note is valid and supported by any consideration?
2. Whether the plaintiff is entitled for recovery of money as prayed for?
3. To what relief?
Issue No. 1:
6.The plaintiff filed the suit against the defendant for recovery of loan amount. It is the claim of plaintiff that he advanced two lakhs and one lakh on two different dates to defendant. But, he failed to repay the loan amounts and subsequently he got issued cheques for the loan amounts, but unfortunately the said cheques was dishonoured. Thereafter, defendant approached him and executed a promissory note on 20.04.2016 for five lakhs including the principal amount of three lakhs along with interest. On 15.05.2017 defendant got issued a cheque for rupees five lakhs, but it was dishonoured, for which he issued the legal notice, then he filed complaint under section 138 of NI Act and same was dismissed on 04.01.2019. Plaintiff got filed the present suit against the defendant for recovery of the loan amount along with the interest.
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7.To establish the suit claim, plaintiff got examined himself as PW.1 and one of the attestor for the promissory note dt:20.04.2016 namely Khaja Masisuddin examined as PW.2. PW.1 filed the chief affidavit in lieu of chief examination while re-iterating the averments of the plaint and got marked Ex.A1 to A13 documents to support his version. Ex.A1 is the original promissory note
Rs.2,00,000/- dated:04.05.2013 executed by defendant No.1 in favour of plaintiff, Ex.A2 is the plaintiff bank pass book of Central Bank of India,
Karimnagar, Ex.A3 is the original promissory note Rs.1,00,000/-, dated 15.06.2013 executed by defendant No.1 in favour of plaintiff, Ex.A4 is the cheque bearing No.005474, dated:20.06.2013 for Rs.2,25,000/- issued by defendant No.1 drawn on Bank of India, Karimnagar Branch, Ex.A5 is the cheque bearing No.032583, dated:20.09.2013 for Rs.2,18,000/- issued by defendant No.1 drawn on Union Bank of India, Karimnagar Branch, Ex.A6 is the cheque bearing No.032588, dated:30.09.2013 for Rs.2,00,000/- issued by defendant No.1 drawn on Union Bank of India, Karimnagar Branch, Ex.A7 is the cheque bearing No.003597, dated:16.06.2014 for Rs.3,76,000/- issued by defendant No.1 drawn on State Bank of India, Kaman Branch, Karimnagar,
Ex.A8 is the original promissory note Rs.5,00,000/-, dated:20.04.2016 executed by defendant No.1 in favour of plaintiff, Ex.A9 is the Certified Copy of Cheque bearing No.047910, dated:15.05.2017 for Rs.5 Lakhs issued by defendant No.1 drawn on State Bank of India, Karimnagar, Ex.A10 is the Office Copy of Legal
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Notice, dated:18.02.2019, Ex.A11 is the Postal Receipt, dated:18.02.2019,
Ex.A12 is the registered postal cover of defendant No.1 and Ex.A13 is the
Certified Copy of Judgment in C.C.No.101/2018 on the file of Special Judicial
First Class Magistrate, Karimnagar.
8.Further stated in his chief affidavit that the defendant filed written statement admitting that he has borrowed hand loan of Rs.2 Lakhs on 09.08.2011. In fact defendant got executed General Power of Attorney for sale consideration of Rs.3,03,500/- but defendant trying to mix up different transactions to misguide and evade of suit amount.
9.PW.2 stated in his chief examination that he is one of the attester of the promissory note dated 20.04.2016. The defendant obtained an amount of
Rs.3,00,000/- from plaintiff in 2013 for the period of one year. After one year the defendant not paid and on demand made by plaintiff he postponed to repay the amount on the ground of non adjusted of amounts and request some more time.
Later on calculating interest on the principal amount of Rs.3,00,000/- its comes to Rs.5,00,000/- which agreed by defendant and got executed a promissory note on 20.04.2016 for sum of Rs.5,00,000/- in presence of him and one B.Raju. But the defendant failed to pay said amount with in time. On 18.02.2019 the plaintiff informed him that he has issued a legal notice to defendant through his counsel
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for repayment of hand loan amount but the defendant failed to reply to legal notice nor paid the amount of Rs.8,56,000/-.
10.In chief affidavit filed by the defendant/DW1, he admitted that he has borrowed loan amount of Rs.2,00,000/- on 04.05.2013 from the plaintiff and on the demand of the plaintiff, he got issued promissory note and four plain cheques bearing No.005474 of bank of India, cheque No.032583 and 032588 of Union
Bank of India, cheque No.003597 of State Bank of India and four pro-notes with his signatures and revenue stamps affixed on the pro-notes towards collateral security. Further defendant also admitted that he borrowed Rs.1,00,000/- for his family and business needs and got executed promissory note for said loan amount. He further stated in his chief affidavit that he borrowed an amount of
Rs.2,00,000/- on 09.08.2011 from the plaintiff and on the same day he got executed a registered general power of attorney deed vide No.7566/2011 in the
Sub Registrar office at Karimnagar as collateral security and also given plain promissory note and blank cheque vide No.047910 with his signature on the said cheque and also promissory note.
11.He further stated that the plaintiff got executed registered sale deed in favour of his wife vide document No.12001/2013 dated 18.11.2013. On knowing the same, he approached the plaintiff and paid the entire loan amount along with
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the interest, then the wife of plaintiff got executed General Power of Attorney vide document No.10921/2015, dated 06.11.2015 in his favour, but the plaintiff did not returned promissory notes and cheques which was handed over by him towards collateral security. Based on the said promissory note and cheque, the plaintiff filed the cheque bounce case and present suit for recovery of money, but cheque bounce case vide CC No.101/2018 was ended in acquittal.
12.It is the case of the plaintiff that he advanced loan to the defendant on two occasions which is admitted by the defendant. Plaintiff got marked
Ex.A1/Promissory note, dated 04.05.2013, Ex.A3/Promissory note, dated 15.06.2013 and Ex.A8/Promissory note, dated 20.04.2019. plaintiff with the oral and documentary evidence established that defendant has borrowed the loan amounts under Ex.A1 and Ex.A3 promissory notes, subsequently he got executed
Ex.A8 promissory note admitting the loans covered under Ex.A1 and Ex.A3 promissory notes, on his failure to repay the loan amount. Defendant is admitting about the obtaining of loan amounts covered under Ex.A1 and Ex.A3 promissory notes, but he has taken the defense that he has repaid the loan amounts including the loan which is obtained by him in the year 2011. As per his contention that he obtained the loan of Rs.2,00,000/- on 09.08.2011 and got executed registered general power of attorney as collateral security in favour of plaintiff for the said loan amount. But, plaintiff got executed registered sale deed in favour of his
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wife in the year 2013. After repayment of loan amount along with the interest, the wife of plaintiff got executed general power of attorney in respect of same property in favour of defendant on 06.11.2015.
13.The defendant has categorically stated in his evidence that he has issued blank promissory notes and blank cheque containing his signatures to the plaintiff towards collateral security for the loans obtained by him from the plaintiff. Even after the receipt of loan amount along with the interest, the plaintiff with malafide intention has not returned the said promissory notes and blank cheques and got filed cheque bounce case and also the present suit for recovery of money. The defendant is not denying the signature appearing upon the cheques and also promissory notes, but he is denying the execution in favour of plaintiff for the loan amounts. Since he states that he got issued blank promissory notes and blank cheques towards collateral security.
14.When it is the contention of the defendant that he has repaid the loan amount, but he has not filed any of the documents showing that he has repaid the loan amount. Admittedly promissory notes and cheques are valuable instruments, which acknowledges the debts. Defendant has taken the plea that inspite of repayment of loan amount, plaintiff failed to return the cheques and promissory notes. Defendant has not stated whether he has taken any action against the
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plaintiff seeking for the return of said promissory notes and cheques, such as issuance of legal notice or raising a report before any police station against the plaintiff. As per the written statement of the defendant that plaintiff got filed cheque bounce case against him and the same was dismissed on 04.01.2019. The said fact discloses that the legal proceedings has been instituted in between the plaintiff and defendant prior to the filing of this suit, since this suit has been filed on 08.04.2019. The failure of the defendant to take legal action against the plaintiff for recovery of his cheques and promissory notes held in the hands of plaintiff, goes against the defense taken by him. Since, defendant is well aware that plaintiff has been initiating legal proceedings against him based on the promissory notes and cheques in his custody.
15.Defendant examined himself as Dw.1 and two other witness as DW.2 and
DW.3. DW,.2 and DW.3 has deposed their evidence by way of chief affidavits and stated that they came to know that defendant has repaid the loan amount to the plaintiff, in turn, the wife of plaintiff has executed GPA in favour of defendant. As per the evidence of DW.2, he stated that defendant has obtained loan of Rs.3,03,500/- from the plaintiff and got executed GPA infavour of plaintiff but whereas DW.3 stated in his evidence that defendant has repaid an amount of Rs.3,79,100/- and plaintiff’s wife has re-transferred the property to the defendant. Defendant got marked Ex.B1 to show that the wife of plaintiff has re-
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transferred the property on his name in the year 2015.DW.2 and DW.3 came to know about the repayment of loan amount by the defendant but they have not stated whether they were present at the time of repayment of loan amount by the defendant or not. It appears from their evidence that they do not have first hand knowledge about the repayment of loan amount but only they came to know about said information from the defendant.
16.Defendant has taken plea that he has repaid the loan amount which he obtain from the plaintiff but he did not mentioned date, time, place and amount and also the names of witnesses in whose presence the loan was repaid. As per defendant, he has hand over blank signed promissory notes and cheques to the plaintiff but plaintiff failed to return said promissory notes and cheques on payment of loan amount. Admittedly blank signed promissory notes and cheques are valuable instruments which creates liability on the signatory. Defendant has not assigned any reason for non return of said promissory note and cheques by the plaintiff and he also not mention whether he has taken any action against the plaintiff on the failure for non return of said documents. The in action of defendant against the plaintiff rises the suspicious about the repayment of loan amount to the plaintiff. The evidence of DW.3 shows that he was present at the time of re-transfer of property by the wife of plaintiff, but otherwise his evidence is of no use.
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17.The defendant got marked Ex.B1 to B3 documents. Ex.B1 document is the
Agreement of Sale-cum-irrevocable General Power of Attorney vide document
No.7566/2011 dated:09.08.2011 executed by the defendant in favour of plaintiff in respect of plot No.92 situated in Sy.No.33 of Bommakal Village to the extent of 252.7 Sq.Yards. Ex.B2 document is the Sale deed vide document
No.12001/2013 dated:18.11.2013 executed by the plaintiff in favour of one
Kotagiri Soujanya in respect of same property i.e. plot No.92 situated in
Sy.No.33 of Bommakal Village to the extent of 252.7 Sq.Yards. Ex.B3 document is the Agreement of Sale-cum-irrevocable General Power of Attorney vide document No.10921/2015 dated:06.11.2015 executed by the said Kotagiri
Soujanya in favour of defendant in respect of same said property i.e. plot No.92 situated in Sy.No.33 of Bommakal Village to the extent of 252.7 Sq.Yards.
Therefore, Ex.B1 to B3 documents reveals that there are property dealings in between plaintiff and defendant in the years between 2011-2015.
18.Both DW.2 and DW.3 are the circumstantial witnesses and deposed their evidence based on the information given by some one. Further, in general, a prudent man discharging his liability acquires a receipt on payment or else takes back the instrument which creates liability on him. In the case on hand, the defendant neither filed any document showing that he has obtained receipt on
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repayment of loan amount nor he has taken back the promissory notes and cheques alleged to be issued by him to the plaintiff towards collateral security.
19.In view of supra discussion, plaintiff by adducing oral and documentary evidence established that defendant borrowed Rs.8,56,000/- (Rupees Eight Lakhs
Fifty Six Thousands Only) from him and he is entitled to recover said loan amount along with interest from the defendant. Therefore, this issue is answered in favour of plaintiff and against defendant.
Issue No.2:
20.In view of the discussions in Issue No.1, the plaintiff is entitled for the suit amount along with the interest.
21.In the result, the suit is decreed with cost. The defendant is directed to pay an amount of Rs.8,56,000/- (Rupees Eight Lakhs Fifty Six Thousands Only) together with interest on principal amount within (45) days from this day, @12 % per annum from the date of suit till the date of decree and @6% per annum from the date of decree till the date of realization.
Typed to my dictation by Stenographer directly on Computer, corrected and pronounced by me, in the open court on this the 24 th day of October, 2025.
Addl. Senior Civil Judge - cum -Addl.Asst. Sessions Judge, Karimnagar.
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APPENDIX OF EVIDENCE
WITNESS EXAMINED
FOR THE PLAINTIFF:FOR THE DEFENDANT:
PW.1Gade RamuDW.1Puttapaka Srinivas
PW.2Khaja MasisuddinDW.2Gadala Srinivas
DW.3Devunuri Ramesh
EXHIBITS MARKED
FOR THE PLAINTIFF:
Ex.A1is the original promissory note Rs.2,00,000/- dated:04.05.2013 executed by defendant No.1 in favour of plaintiff.
Ex.A2is the plaintiff bank pass book of Central Bank of India, Karimnagar.
Ex.A3is the original promissory note Rs.1,00,000/-, dated 15.06.2013 executed by defendant No.1 in favour of plaintiff.
Ex.A4is the cheque bearing No.005474, dated:20.06.2013 for Rs.2,25,000/- issued by defendant No.1 drawn on Bank of India, Karimnagar Branch.
Ex.A5is the cheque bearing No.032583, dated:20.09.2013 for Rs.2,18,000/- issued by defendant No.1 drawn on Union Bank of India, Karimnagar Branch.
Ex.A6is the cheque bearing No.032588, dated:30.09.2013 for Rs.2,00,000/- issued by defendant No.1 drawn on Union Bank of India, Karimnagar Branch.
Ex.A7is the cheque bearing No.003597, dated:16.06.2014 for Rs.3,76,000/- issued by defendant No.1 drawn on State Bank of India, Kaman Branch, Karimnagar.
Ex.A8is the original promissory note Rs.5,00,000/-, dated:20.04.2016
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executed by defendant No.1 in favour of plaintiff.
Ex.A9is the Certified Copy of Cheque bearing No.047910,
dated:15.05.2017 for Rs.5 Lakhs issued by defendant No.1 drawn on
State Bank of India, Karimnagar.
Ex.A10is the Office Copy of Legal Notice, dated:18.02.2019.
Ex.A11is the Postal Receipt, dated:18.02.2019.
Ex.A12is the registered postal cover of defendant No.1.
Ex.A13is the Certified Copy of Judgment in C.C.No.101/2018 on the file of Special Judicial First Class Magistrate, Karimnagar.
FOR THE DEFENDANT:
Ex.B1is the Mee Seva Copy of Agreement of Sale-cum-General Power of Attorney vide Document No.7566/2011, dated:09.08.2011.
Ex.B2is the Mee Seva Copy of Agreement of Sale-cum-General Power of Attorney vide Document No.12001/2013, dated:18.11.2013.
Ex.B3is the Mee Seva Copy of Agreement of Sale-cum-General Power of Attorney vide Document No.10921/2015, dated:06.11.2015.
Addl. Senior Civil Judge - cum -Addl.Asst. Sessions Judge, Karimnagar.