Andhra Pradesh High Court
Judges : S.V.MARUTHI
Sunkara Laxmaiah - Appellant
Versus
Vadlapudi Venkateswara Rao - Respondent
Decided On : 09-16-97
Civil Procedure Code, 1908 - Section 100 – Borrow Amount - D-1 and D-2 are appellants - Plaintiff is transferee from D-3 under a pronote - D-3 transferred pronote in favour of plaintiff for a sum pronote amount under Ex - A-1 - Plaintiff claimed relief under Ex - A-1 by virtue of transfer under Ex - A-2 against D-l and D-2 executants of pronote and for an alternate relief against D-3 - District Munsif dismissed suit of plaintiff against D-l and D-2 and decreed suit against D-3 - Aggrieved by same plaintiff filed an appeal seeking decree against D-l and D-2 - Learned district Judge set aside decree passed by District Munsif against D-3 though there was no appeal by D-3 and decreed suit against D-l and D-2 - Aggrieved by same D-l and D-2 filed present appeal - Held, Therefore finding of learned Judge is set aside - It follows that Ex - B-1 is genuine and proved - Since appellants have admitted execution of pronote and contended that it is not supported by consideration that burden is on them to establish that it is not supported by consideration - Appellants have established that Ex - B-l is true and genuine - In other words they have discharged burden placed on them namely that pronote is not supported by consideration - Burden now shifts to 1st respondent and 2nd respondent to establish that pattas were granted and therefore suit pronote is supported by consideration - However no material is placed before me either by way of pleadings or evidence that in fact pattas were granted to appellants - In view suit pronote is not supported by consideration - Hence there cannot be any decree against appellants and decree granted by District Munsif is set aside - Learned Counsel for appellants also pointed out that suit pronote was executed and suit was filed and therefore it is barred by limitation - However there was no pleading to this effect and there was no issue on question of limitation but since it is for Court to consider prima facie whether suit is barred by limitation lower Court ought to have dismissed suit on ground that suit is barred by limitation - Appeal is allowed.
( 1 ) D- 1 and D-2 are the appellants. The plaintiff is the transferee from D-3 under a pronote dated 2-11-1968. D-3 transferred the pronote in favour of the plaintiff for a sum of Rs. 4,352/- The pronote amount under Ex. A-1 is rs. 3,900/ -. The plaintiff claimed relief under Ex. A-1 by virtue of the transfer under Ex. A-2 against D-l and D-2 executants of the pronote and for an alternate relief against D-3. The District Munsif dismissed the suit of the plaintiff against d-l and D-2 and decreed the suit against D-3. Aggrieved by the same the plaintiff filed an appeal seeking the decree against D-l and D-2. The learned district (sic. Subordinate) Judge set aside the decree passed by the District munsif against D-3 though there was no appeal by D-3, and decreed the suit against D-l and D-2. Aggrieved by the same D-l and D-2 filed the present appeal.
( 2 ) THE facts in brief are as follows: defendants 1 and 2 borrowed an amount of Rs. 3,900/- from the third defendant and executed a pronote on 2-11-1968 at Nuzvid and executed the suit pronote agreeing to pay the same with interest at 6% per annum. The third defendant transferred the said pronote in favour of the plaintiff for a sum of Rs. 4,352/- on 6-10-70 as per the endorsement made on the reverse of the pronote. The plaintiff subsequently issued a notice to the 1st and 2nd defendants to pay the amount and the defendants replied stating that the transfer is not supported by consideration and that they did not receive any consideration under the suit pronote and hence the suit pronote is not supported by consideration. On receipt of the reply the plaintiff informed the same to the third defendant and filed the present suit and impleaded him as he is a necessary party to the suit. In this plaint he averred that in case the pronote becomes unenforceable against the 1st and 2nd defendants, the plaintiff is entitled to recover the suit amount from the third defendant with costs and interest.
( 3 ) THE first defendant filed a written statement admitting execution of pronote for Rs. 3,900/- but denying consideration. It is averred that the third defendant sold some lands in his estate to defendants 1 and 2 and their relatives and, on the abolition of the estates defendants 1 and 2 could not get pattas from the Government for the said lands and therefore, they approached the third defendant asking for his help and in that connection after paying rs. 740/- cash as part of sale consideration to him, for the balance of the amount of Rs. 3,900/- the suit pronote was executed, with an understanding that if the patta is granted by the Government the defendants 1 and 2 will have to pay Rs. 3,900/- in the absence of which the pronote gets cancelled and that after the third defendant gave a letter in writing on 2-11-1968 undertaking to fulfil his obligation to secure pattas to the defendants 1 and 2. The scribe of the said letter is the clerk of the third defendant and it was duly signed by the third defendant. Unless pattas are granted by the settlement authorities the third defendant or his alleged transferee, and the plaintiff are not entitled to recover any amount under the pronote. No pattas are granted so far. Therefore, the claim under the said pronote is premature. Since the plaintiff is not a bona fide holder in due course the plaintiff cannot recover any amount from these defendants. The plaintiff who is inimically disposed towards these defendants conspired with the third defendant and brought the suit to harass these defendants. Therefore, the suit has to be dismissed with costs.
( 4 ) THE third defendant filed a written statement admitting the plaint allegations but stated that the plaintiff is not entitled to decree as against him. He further stated that defendants 1 and 2 already took cash of Rs. 3,900/- from him and executed the pronote and as they did not repay the same due to him in spite of demand this defendant transferred the pronote for consideration in fa
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