Andhra Pradesh High Court
Judges : SATYANARAYANA RAJU
Mantrala Simhadri - Appellant
Versus
Palli Varalakshmi - Respondent
Decided On : 03-02-61
STAMP ACT - ADMISSION OF DOCUMENT - SUBSEQUENT REJECTION - SECTION 36 - EFFECT - DOCUMENT ADMITTED IN EVIDENCE - CANNOT BE REJECTED AT SUBSEQUENT STAGE - ENDORSEMENT OF PAYMENT ON PROMISSORY NOTE - ACKNOWLEDGMENT OF DEBT - SUIT BASED ON DEBT - MAINTAINABLE.
Fact of the Case:
Plaintiff sued to recover a debt of Rs. 499 borrowed by the defendants on 6th September 1951. He relied on a payment made on 1st September 1954 as saving the debt from limitation. The promissory note was admitted in evidence, but the lower court dismissed the suit holding that it was not maintainable as it was insufficiently stamped.
Finding of the Court:
The court held that the admission of the promissory note in evidence satisfied the requirements of section 36 of the Stamp Act and that the suit was maintainable. The court further held that the endorsement of payment on the promissory note constituted an acknowledgment of the original debt and that the suit was maintainable on the basis of the anterior indebtedness.
Issues: 1. Whether the admission of the promissory note in evidence satisfied the requirements of section 36 of the Stamp Act? 2. Whether the endorsement of payment on the promissory note constituted an acknowledgment of the original debt?
Ratio Decidendi: 1. Section 36 of the Stamp Act prohibits the rejection of a document at a subsequent stage of the suit if it has been admitted in evidence. 2. An endorsement of payment on a promissory note constitutes an acknowledgment of the original debt.
Final Decision: The court set aside the judgment of the lower court and allowed the revision petition. The suit was decreed with costs both in the High Court and the lower court.
( 2 ) MR. Pooraiah, learned counsel for the petitioner, has contended that the promissory note having been admitted in evidence, section 36 of the Stamp Act prohibited the rejection of the document at a subsequent stage of the suit. In this contention, he is supported by the decision of Mr. Justice Viswanatha Sastri in Basavayya Naidu v. Venkateswarlu. He has alternatively contend d thatt the endorsement of payment, evidenced by Exhibit A-1, constitutes an acknowledgment of the original debt and the suit haviag been laid on the basis of the anterior indebtedness, it should have been decreed Mr. E. Venkatesam, learned counsel for the respondents, has however contend d that the admission of Exhibit A-1 did not satisfy the requirements of section 36 of the Sfamp Act inasmuch as there was no decision on contest when the endorsement of admission was made on the promissory note, that it wav a mere mechanical act and that therefore the view taken by the lower Court was correct.
( 3 ) FROM the endorsements on the plaint, the following facts emerge :- the plaint was presented on the and of September, 1957, along with the promissory note. Or. the 3rd of September there is an endorsement on the plaint which reads as follows :- "penalty of Re. 1 is to be paid on the suit document as the same is a pronote for Rs. 500 but stamped with Anna 1 label instead of As. a. Returned. Time 7 days. " the plaint was re-presented on the gth September, 1957. The penalty of Re. 1 as required by the office endorsement has been paid There is a further endorsement on the plaint, dated 12th September, 1957, which read; :- "it is to be stated how the suit is maintainable on a pronote insufficiently stamped. . . . . . . "
( 4 ) THE Advocate for the plaintiff stated That the suit was based on the debt and the note was only the evedence of the d bt. Thereafter notices were issued to the defendants. They filed the written statement on the 30th of October, 1957. The defendants raised the objection that the promissory note being insufficiently stamped, the suit was not maintainable. The plaintiff gave evidence as P. W. 1 and the promissory note which was proved by him, was marked as Exhibit A-1. From the notes of ev dence it does not appear that at that stage any objection was taken by the defendants to the admissbility of the document. The endorsement appearing on the promissory note is initialled by the learned District Munsif. The endorsement of payment was marked in the evidence of P. W. 1 as Exhibit A-2 and this was similarly initialled by the presiding officer in his own handwriting. The usual appendix of evidence attached to die judgment contains the following entry :- "documents marked for plaintiff. Exhibit A-1, dated 6th September, 1951-Suit promissory note executed by the defendant in favour of plaintiff for Rs. 500. Exhibit A-2, dated ist September, 1954-Endorsement of payment on Exhibit A-1 for Rs. 80.
( 5 ) THE effect of these entries on the document has to be understood in the light of order 13, rules 4 and 6 of the Civil Procedure Code. Order 13, rule 4, requires that there shall be endorsed on every document which has been admitted in evidence in the suit certain particulars and that the endorsement shall be signed or initialled by the Ju
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