SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Article Pause Article
judgment-img

1936 Supreme(SC) 8

Privy Council At Palestine
Maugham, Alness , Justice Lords Atkin, JJ.
Adib el Hinnawi -Appellant
Versus
Yacoub Fahmi Abuel Huda el Faruqi -Resopndent
Appeal No. 101 of 1933
Decided On : 27-02-1936

Advocates Appeared:
Frank Whitworth, B.B. Stenham , Arthian Davies, John Morris

The burden of proving lack of consideration for a promissory note lies with the party asserting it, and the adequacy of such consideration is irrelevant. Pleas of undue influence not pressed in lower courts cannot be raised at the final appellate stage.

Headnote:(A) Promissory Notes - Consideration - Burden of proof - The burden is on the party alleging that no consideration was given for a promissory note to prove the same - The court is not required to enquire into the adequacy of the consideration, but only whether any consideration was given.

(B) Undue Influence - Plea not raised in lower courts - Where a plea of undue influence is not pressed in the courts below, resulting in a lack of specific evidence or direct findings, the appellate court is not obligated to deal with the matter or remit the case for further enquiry, particularly in protracted litigation.

Facts of the case:
A suit was filed by a widower against the heir of his deceased wife for the recovery of a sum based on a promissory note. After multiple remittals between the District Court and the Supreme Court regarding the execution of the note and the existence of consideration, the Court of Appeal entered judgment for the respondent, holding that the burden of proving lack of consideration lay with the appellant and that adequacy of consideration was irrelevant.

Findings of Court:
The court held that consideration was given for the promissory note and that the alleged inadequacy of such consideration was not a relevant defense. The plea of undue influence was rejected as it had not been urged in the lower courts.

Issues: Whether the promissory note was validly supported by consideration and whether a plea of undue influence could be raised for the first time at the final appellate stage.

Ratio Decidendi: The court ruled that the burden of proving a lack of consideration rests with the party asserting it and that the adequacy of consideration is not a valid ground to challenge a demand made upon a promissory note. Additionally, an appellate court will not remit a case for enquiry into undue influence if the party failed to obtain a judicial decision on the matter in the lower courts.

Result: Appeal dismissed.

Legal Category Hierarchy

  • contract law
    • promissory notes
      • consideration
    • vitiating factors
      • undue influence
  • practice and procedure
    • appellate procedure
      • new pleas on appeal

Lord Alness:-

This is an appeal from a judgment of the Supreme Court of Palestine, dated 5th April 1932, reversing a judgment of the District Court of Jaffa, dated 9th November 1931, and entering judgment for the respondent against the appellant for the equivalent in Palestine currency of £E4,000, with interest and costs. The action out of which the appeal arises was begun on 7th February 1928, in the District Court of Jaffa by the respondent, who was the widower of one Fatmeh Mohamad el'Hinnawi, against the appellant, as the heir of Fatmeh, claiming payment of the said sum of £E4,000, which was alleged to be due to the respondent upon a promissory note, dated 7th November 1926, and interest. The defence offered by the appellant, called his "statement of reply," was in substance (1) that the promissory note was not executed by the said Fatmeh, and (2) that there was no consideration for the note. On 18th March 1928, the action was heard before the District Court of Jaffa, when it was dismissed on the grounds (1) that the promissory note was invalid, and (2) that in law the respondent was not entitled to establish that the deceased had made the note. On 21st May 1928. the respondent appealed from the said judgment to the Supreme Court of Palestine. On 5th February 1929, that Court unanimously allowed the appeal, and set aside the judgment of the District Court. They remitted the action to the District Court for comparison of the finger-prints on the promissory note with authenticated finger-prints of the deceased, and for hearing evidence with regard to the making of the note; and they further ordered that, in the event of the District Court being satisfied that the note was duly executed, the question whether consideration was given therefor or not should be taken into account and a fresh judgment given.

On 31st March 1929, the case again came on for hearing before the District Court of Jaffa, when evidence and argument were duly heard. On 25th July 1929, the District Court found in fact that the finger-print on the note was that of the deceased Fatmeh, and they entered judgment for the respondent against the appellant for £E4,000 and costs. The District Court, however, omitted to deal with the question of whether consideration had been given for the note, as in the circumstances they were directed to do. On 3rd February 1930, the appellant appealed from that judgment to the Supreme Court of Palestine. He pleaded inter alia that no consideration for the promissory note had been given, and pointed out that no decision on that matter had been given by the District Court. On 26th May 1931, the appeal was heard by the Supreme Court of Palestine, when they remitted the case to the District Court of Jaffa, in order that the question whether consideration had been given for the promissory note might be considered and after evidence being given, if that should be thought necessary, be determined. The District Court heard evidence on the matter and on 9th November 1931, they delivered judgment. They held that there was no real consideration for the promissory note, and being of opinion that the services rendered to the deceased by the respondent were not equivalent to the value of the note, they dismissed the action.

The respondent appealed to the Court of Appeal, and on 5th April 1932, that Court allowed the appeal, set aside the judgment of the District Court, and entered judgment in favour of the respondent, with costs. The Court of Appeal held that the burden was on the appellant to show that no consideration had been given by the respondent for the note, and that that defence had not been made out. They further held that it was not for the Court of first instance to enquire into the adequacy of the consideration for the note, but to consider whether or not there bad or had not been any consideration given. By orders dated 26th May 1932 and 17th September 1932, the appellant obtained leave to appeal to His Majesty in Council and the a



Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
whatsapp-icon Back to top