SUPREME COURT OF INDIA
M.R. SHAH, KRISHNA MURARI, JJ.
Kapil Kumar – Appellant
Versus
Raj Kumar – Respondent
Civil Appeal No. 5854 of 2022
Decided On : 14-10-2022
Civil Procedure Code, 1908 – Order 37 Rule 1 and Section 100 – Negotiable Instruments Act, 1881 – Section 118(a) – Recovery suit – Execution of pro-note against loan amount – Appeal by unsuccessful plaintiff – There were concurrent findings of facts recorded by Trial Court as well as First Appellate Court on execution of pro-note by defendant in favour of plaintiff – Such findings were on appreciation of entire evidence on record – Unless concurrent findings recorded by courts below were found to be perverse, same were not required to be interfered with by High Court in exercise of powers under Section 100 of CPC – Even otherwise on merits also, impugned judgment and order passed by High Court is unsustainable – Signature of defendant on pro-note has been established and proved by plaintiff by examining handwriting expert – No contrary evidence has been led by defendant to disprove his signature on pro note – High Court has committed very serious error in upsetting findings of facts recorded by Trial Court confirmed by First Appellate Court on execution of pro-note by defendant in favour of plaintiff – Non-examination of witness to pro-note cannot be held against plaintiff – Impugned judgment and order passed by High Court quashed and set aside and judgment and decree passed by Trial Court decreeing suit confirmed by First Appellate Court restored. (Paras 5.1, 6, 6.1 and 7)
Facts of the case:
Appellant herein-original plaintiff instituted the suit against respondent-original defendant for recovery of Rs. 1 lakh. It was the case on behalf of the plaintiff that defendant has borrowed a sum of Rs. 1 lakh from him on 29.06.2007 and has also executed a pro-note and receipt in favour of plaintiff. Original plaintiff has preferred present appeal assailing judgment and order dated 05.08.2019 passed by High Court of Punjab and Haryana at Chandigarh in Regular Second Appeal No. 1727 of 2016, by which, High Court has allowed appeal preferred by original defendant and has set aside the judgment and order passed by First Appellate Court as well as Trial Court decreeing suit for recovery of Rs. 1,36,550/-.
Findings of Court:
High Court has erred in allowing the second appeal and quashing and setting aside the decree passed by Trial Court confirmed by First Appellate Court.
Result : Appeal allowed.
JUDGMENT :
M.R. SHAH, J.
1. Feeling aggrieved and dissatisfied with the impugned judgment and order dated 05.08.2019 passed by the High Court of Punjab and Haryana at Chandigarh in Regular Second Appeal No. 1727 of 2016, by which, the High Court has allowed the said appeal preferred by the original defendant and has set aside the judgment and order passed by the First Appellate Court as well as the Trial Court decreeing the suit for recovery of Rs. 1,36,550/- the original plaintiff has preferred the present appeal.
2. The appellant herein-original plaintiff instituted the suit against the respondent-original defendant for recovery of Rs. 1 lakh. It was the case on behalf of the plaintiff that the defendant has borrowed a sum of Rs. 1 lakh from him on 29.06.2007 and has also executed a pro-note (exhibit P1) and receipt (exhibit P2) in favour of the plaintiff. The defendant denied the execution of pro-note and took the stand that no loan was taken by the defendant and in fact the transaction was in between the father of the plaintiff and the defendant had paid the whole amount borrowed by him from the father of the plaintiff. The learned Trial Court framed the relevant issues.
2.1 The plaintiff examined four witnesses, namely, PW-1 Kapil Kumar (plaintiff), PW-2 Yashpal Chand (handwriting and finger print expert), PW-3 Satish Kumar (deed writer) and PW-4 Sat Narian (clerk to prove legal notice).
2.2 The defendant examined three witnesses, namely, DW-1 Dinesh Kumar (clerk cum cashier, SBI to prove the deposit of amount in bank account), DW-2 Raj Kumar (defendant) and DW-3 Phool Singh S/o Puran Singh (father of plaintiff).
2.3 On appreciation of evidence, the learned Trial Court believed the execution of pro-note executed by the defendant in favour of the plaintiff and consequently decreed the suit. The appeal filed by the defendant before the learned First Appellate Court came to be dismissed. In the second appeal under Section 100 of Code of Civil Procedure, the High Court has interfered with the concurrent findings recorded by both the courts below on execution of the pro-note by the defendant in favour of the plaintiff, solely on the ground that attesting witness to the pro-note has not been examined therefore, the content of the pro-note has not been proved and consequently has allowed the second appeal.
2.4 Feeling aggrieved and dissatisfied with the impugned judgment and order passed by the High Court the original plaintiff has preferred the present appeal.
3. Learned counsel appearing on behalf of the appellant-original plaintiff has vehemently submitted that in the facts and circumstances of the case the High Court has erred in upsetting and/or quashing the concurrent findings recorded by both the courts below on execution of the pro-note by the defendant in favour of the plaintiff, in exercise of powers under Section 100 of CPC.
3.1 It is submitted that when the findings on facts were recorded by both the courts below on execution of pro-note by the defendant in favour of the plaintiff which as such were on appreciation of evidence on record, more particularly, the testimony of PW-3, the same was not required to be interfered with by the High Court in exercise of powers under Section 100 of CPC.
3.2 It is submitted that if the deposition of PW-3 is considered as a whole, it is apparent that PW-3 deed writer has specifically stated that when he asked the defendant as to whether he had received the money then the defendant admitted the receipt of money. It is submitted in that view of the matter and the deposition of PW-1-plaintiff and the deposition of deed writer-PW-3 the execution of pro-note and even the content of payment of the consideration mentioned in the pro-note has been established and proved. Therefore the High Court has committed a very serious error in allowing the second appeal and consequently quashing and setting aside the judgment and decree passed by the learned Trial Court confirmed by the learned First Appellate
Non-examination of witness to pro-note cannot be held against plaintiff when there are concurrent findings of facts recorded by two Courts on execution of pro-note by defendant in favour of plaintiff....
Court deemed the execution of the pronote unproven due to insufficient evidence by the plaintiff and reliance on expert evidence favoring the defendant.
The execution of a promissory note must be proven for the legal presumption of consideration to apply; failure to establish execution results in dismissal of the claim.
The plaintiff proved the execution of the pro-note and discharged the initial burden of proof, entitling them to a decree for recovery of money.
The burden of proof regarding execution lies on the plaintiff; mere denial by the defendant does not suffice for presumption of consideration.
A court cannot blindly accept the report of a handwriting expert. The expert must furnish the necessary criteria for deciding the accuracy of his conclusion, enabling the court to form its own indepe....
The signature of the maker of a promissory note must be proven for the presumptions under the Negotiable Instruments Act to apply; if the signature is disputed and found to be forged, the note is inv....
The presumption under Section 118 of the Negotiable Instruments Act arises when execution of a promissory note is established, placing the burden on the defendant to disprove the transaction.
The burden of proof of material alteration rests on the party alleging it, and the admissibility of a xerox copy of a document as evidence is limited, especially when there is a possibility of tamper....
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