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1965 Supreme(AP) 209

Andhra Pradesh High Court
Judges : GOPALRAO EKBOLE, S.VENKATARAMAN
ALLAMPATI SUBBA REDDY ALIAS SUBBARAMI REDDY - Appellant
Versus
NEELAPAREDDI AMANA REDDY - Respondent
Decided On : 09-28-65

Any material alteration of a negotiable instrument renders the same void as against any one who is a party thereto at the time of making such alteration and does not consent thereto, unless it was made in order to carry out the common intention of the original parties.

Headnote:

NEGOTIABLE INSTRUMENTS ACT, 1881 - SECTION 87 - ALTERATION OF DATE - MATERIAL ALTERATION - VOID INSTRUMENT - BURDEN OF PROOF ON HOLDER - EXPLANATION REQUIRED - PRESUMPTION OF ALTERATION AFTER EXECUTION.

Fact of the Case:

Plaintiff sued to recover a sum of money on the foot of a promissory note dated 29-7-1959. The defendant contended that the promissory note was actually executed on 22-7-1959 and that the date was changed to bring the suit within limitation. The trial court found that there was a material alteration in the promissory note and that the date was changed from 22nd to 29th. The plaintiff appealed.

Finding of the Court:

The court held that the alteration of the date of the promissory note was a material alteration and that the promissory note was therefore void under Section 87 of the Negotiable Instruments Act, 1881. The court also held that the plaintiff had failed to offer any explanation for the alteration and that the presumption was that the alteration was made subsequent to the execution of the document.

Issues: Whether the alteration of the date of the promissory note was a material alteration.

Ratio Decidendi: The court held that the alteration of the date of the promissory note was a material alteration because it changed the time when the promissory note was executed and affected the period of limitation within which the plaintiff had to institute the suit. The court also held that the plaintiff had failed to offer any explanation for the alteration and that the presumption was that the alteration was made subsequent to the execution of the document.

Final Decision: The court dismissed the plaintiff's appeal.

( 1 ) THIS Revision Petition arises out of a suit S. C. S. 143/62 instituted by the petitioner-plamtiif for the recevery of a sum of Rs. 1,864 on the foot of a promissory note dated 29-7-1959. The principal defence with which I am concerned in this revision petition was that the promissory note was not executed on 29-7-1959, but it was executed on 22-7-1959. It was contented by the defendant that in order to bring the suit within limitation, the plaintiff after erasing the figure 2 has re- written the figure 9 the lower Court after proper enquiry found that there has been a material alteration in the promissory note and that the date was changed from 22nd to 29th in order to bring the suit within limitation. The suit was tiled on 30th July, 1959, 29th being a holiday. The main contention of Mr. A. Kuppuswamy, the learned Counsel for the petitioner; is that when the defendant even before inspecting the suit document took a stand that the promissory note was really executed on 22nd July, 1959 and not on 29th July 1959 and when in support of that contention he stated in his deposition that he has a diary with him, which was not produced, adverse inference ought to havo been drawn against him and it ought to have bean held that the suit promissory note was not materially altered and that it was really executed on 29th July 1959. After going through the judgment of Court below, I find that the lower court has not believed the defendant s evidence in that behalf, and also did not believe the evidence adduced by the plaintiff. It is pertinent to note that the lower Court reached the conclusion after examining the promissory note that the figure 9 is re-wiitten after the old figure has been erased. In view of that suspicious nature of the document, it held that material alteration has taken place. I do not in these circumstances feel that the production of the diary could have any effect upon the suit. Even otherwise, the lower Court has disbelieved the defendant s evidence. It did not also believe the plaintiff i evidence. The position therefore is that there is no eliable evidence on either side of the parties. A careful examination of the suit promissory note, however reveals that some figure was there in the place of 9 , which was erased and the figure 9 was subsequently written upon it. Tint this is so is clear because at the place where erasure Las taken place, the thinning of the paper is clearly seen. That is why when figure 9 was written , the ink has spread. There can be no doubt that the lower court was correct in treating the document a. s suspicious in view of the abovesaid circumstance, When there is no evidence on either side explaining about this suspicious nature of the document, what course should the Court take is the real question which arises in the case. The law on the point seems to me to be clear. The English rule that material altatation of a date makes it altogether void is summarised thus in halsbury s Laws of England, III Edition, Vol. II, page 367, paragraphs 598 and 599:-"598. A writing proposed to be executed as a deeu may be alteied by erasure or interlineation or in any other way before it is so executed; and aay alteration so made before execution does not affect th validity of the deed. Any alteration, erasure or interlineation appearing upon the face of a deed is presumed, in the absence of evidence to the contrary, to have bejn made before the execution of the deed. ""599. If an alteration (by erasure, interlineation, or othetwise)is made in a material part of a deed, after its execution, by or with the consent of any patty thereto or person entitled thereunder, but without the consent of the patty or parties liable thereunder, the deed is therby made void The avoidance, lowers, is not ab initio. or so as to nullify any conveyancing effect which the deed has already had; but only operates as from the time of such alteration, and so as to prevent the person, who has made or authorised the
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