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1922 Supreme(SC) 46

Privy Council
Ameer Ali, Sir John Edge, Phillimore, Justice Dunedin, JJ.
Data Ram Jani and others -Appellant
Versus
Basant Kunwar -Resopndent
P. C. A. No. 57 of 1921
Decided On : 11-07-1922

Advocates Appeared:
T. L. Wilson and Co., Gould, Franklin, Pyke

A claim based on a disputed promissory note fails if the plaintiff's evidence is extraordinary, lacks corroboration, is contradicted by their own witnesses, and is unsupported by business records, particularly when the timing of the suit suggests a fraudulent scheme.

Headnote:(A) Evidence and Limitation - Execution of promissory note - Burden of proof - Forgery - Where the evidence of the plaintiff is extraordinary and lacks corroboration, and is further contradicted by a key witness regarding the circumstances of execution, the claim based on a disputed promissory note must fail.

(B) Money-lending business - Absence of account books - It is inconceivable that a professional money-lending and pawnbroking business would be carried on without maintaining account books; the absence of such records significantly weakens the credibility of the plaintiff's case.

(C) Conduct of parties - Delay in filing suit - Filing a suit on the last day of limitation after the defendant has explicitly repudiated the claim may be indicative of a fraudulent scheme.

Facts of the case:
Plaintiffs sought recovery of a sum of money based on a promissory note. The defendant, a woman of means and status, denied the execution of the note, claiming it was a forgery. The document was written in a language the defendant could not read. The plaintiffs' lead witness and the writer of the note provided contradictory testimony regarding the location and circumstances of the signing. Furthermore, the plaintiffs failed to produce any account books to support their claim of carrying on a money-lending business, and the suit was filed on the final day of the limitation period after the defendant had already repudiated the claim.

Findings of Court:
The court found the plaintiffs' evidence to be extraordinary and lacking the necessary corroboration. The contradictions between the witnesses, the absence of business records, and the suspicious timing of the litigation led the court to conclude that the case was false and fraudulent.

Issues: Whether the disputed promissory note was duly executed by the defendant and whether the plaintiffs had sufficiently proved the existence of the debt.

Ratio Decidendi: The court held that the burden of proof lies with the plaintiffs to establish the genuineness of the promissory note. In the absence of business records, given the contradictory evidence regarding the execution of the document, and considering the conduct of the plaintiffs in delaying the suit until the last day of limitation, the plaintiffs failed to meet the burden of proof.

Result: Appeal dismissed.

Legal Category Hierarchy

  • civil law
    • contract law
      • negotiable instruments
        • promissory notes
  • practice and procedure
    • evidence
      • burden of proof
      • forgery and authenticity
      • witness credibility

Sir John Edge :-

This is an appeal by the plaintiffs from a decree, dated the 3rd December, 1918, of the High Court at Allahabad, which reversed a decree, dated the 21st February, 1916, of the Additional Subordinate Judge of Benares and dismissed the suit. The plaintiffs are Data Ram Jani, Kirpa Ram Jani and Ganga Ram Jani, sons of Adit Ram Jani, deceased. Ganga Ram Jani was minor when the suit was brought.

The suit was wrought on the 27th March, 1915, in the Court of the Subordinate Judge of Benares to obtain a decree against the defendant for Rs. 29,818 principal and interest and future interest. It was alleged in the plaint that Adit Ram Jani, who is dead and was the father of the plaintiffs, and the plaintiff Data Ram Jani, in 1911 and 1912 lent to the defendant, partly in cash and partly in the value of ornaments, various sums of money on promissory notes given by her to them, and that on the 28th March, 1912, she, in consideration of the moneys then due by her to them and a sum of Rs. 1,000 then lent by them to her, gave to them her promissory note for Rs. 21,925 and interest, and that the cause of action arose on the 28th March 1912.

The defence was an absolute denial of these allegations, and the defendant specifically denied that she ever received any money or ornaments from the plaintiffs or their father under promissory notes or in any other way; and said that she had never executed any promissory notes in their favour and had never had any money dealings with them. Briefly stated the defence was that the claim was a false and fraudulent claim and that the promissory note sued upon was a forgery. The issue was upon the plaintiffs.

Adit Ram Jani belonged to a Gujrati Hindu family of Nagar Brahmans, which carried on business as a firm at Benares. The plaintiff, Data Ram Jani and his father, on their own money-lending and pawnbroking which was separate from the family business as a firm, drawing upon the firm for such moneys as they required; they finally separated from the firm and on partition they were found to be indebted to the family business of the firm to the extent of Rs. 10,000 or Rs. 12,000.

It has not been proved when the partition actually took place, but it appears that it must have been after the 28th March, 1912 if not shortly before that date. If the evidence of the plaintiff, Data Ram Jani, who was the leading witness for the plaintiffs, is to be believed in any respect, there is no entry in the books of the firm as to the alleged loans to the defendant and he and his father kept no books relating to their separate businesses.

The defendant is a Purdanashin lady of a family of Gujrati Sipahi Nagar Brahmans. Her paternal grandfather was Munshi Chunni Lal, who had two sons, Munshi Pannah Lal, who was the defendant's father and died when she was three years old, and Raja Munshi Madho Lal. Munshi Chunni Lal had been possessed of zamindari property. Zamindari property of Chunni Lal came to the defendant through her father. She had a zamindari and banking business, which was carried on her behalf, under the supervision and management of her uncle Raja Munshi Madho Lal in a house in Muhalla Nandan Sahu in Benares, which was known as the kothi of Chunni Lal. The business of Raja Munshi Madho LaL was carried on in Muhalla Chan Khamba.

She had last lived in the kothi of Chunni Lal about ten years before 1912. Her private residence was in Muhalla Sudeshari, another Muhalla of Benares. She was a wealthy woman, owning zamindari property and a good business. Owing to the adoption by her of a son, disputes arose between her and her uncle. She wished her zamindari property to be recorded in her name, he objected, and he ceased to pay over to her her income from her business. She was compelled to bring a suit against her uncle, and in that suit her uncle was ordered to pay to her during the pendency of the suit an allowance of Rs. 556 a month. Her uncle also brought a suit against her. She thus became involved in litigation






























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