IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
V.R.K.Krupa Sagar, J.
Tirigedala Ramanayya – Petitioner
Versus
Chenuthala Apparao – Respondent
Second Appeal No.474 of 2012
Decided On : 27-01-2023
Civil Procedure Code,1908 - Section 100 - Negotiable Instrument Act, 1881 - Section 87 and 118 - Indian Evidence Act, 1872 - Section 114 - Promissory note - payments - Settlement - Defendant borrowed an amount of Rs.30,000/- from him and agreed to repay with interest @ 24% P.A. and executed suit promissory note in favour of plaintiff - Subsequently, defendant paid - On both occasions defendant himself made acknowledgments of such part payments on reverse side of promissory note - Subsequently as defendant failed to repay balance due, plaintiff got issued a notice of demand dated to which there was no response from the defendant and therefore claiming principal and interest accrued there on suit is laid - Whether there was any material alteration or not is a question of fact - Held, It is not a case where despite accepting that there was material alteration Courts below considered such a document as valid - If that happened argument under Section 87 of Negotiable Instruments Act canvassed by the learned counsel for appellant could have made Court appreciate that a substantial question of law is arising for consideration. - Dispute is about Ex.A1 promissory note - By evidence of Pws.1 and 2 it's execution by appellant was proved - A pronote being a negotiable instrument certain special rules of evidence are provided in Chapter 13 of Negotiable Instrument Act, 1881 - Section 118 of Negotiable Instrument Act states that a Court shall presume that every negotiable instrument was made or drawn for consideration and shall presume that such an instrument bearing a date was made or drawn on such date - Section 20 of Negotiable Instruments Act speaks about inchoate stamped instruments - As per this provision where a person signs and delivers to another a paper stamped in accordance with law relating to negotiable instruments and delivers such document either wholly blank or having written thereof an incomplete negotiable instrument, he thereby gives prima-facie authority to holder thereof to make or complete instrument - Second appeal is dismissed.
JUDGMENT :
Defendant in the suit filed this second appeal under Section 100 C.P.C. Respondent herein is the plaintiff in the suit.
2. For hearing before admission, notice was taken out to respondent and the same was personally served on respondent on 06.08.2012. But no appearance has been made at any time thereafter. Therefore this appeal has been taken up for hearing exparte.
3. The controversy between the parties is a debt transaction based on a promissory note. Plaintiff filed O.S.No.249 of 2009 before the learned Principal Junior Civil Judge, Vizianagaram stating that on 10.11.2003 defendant borrowed an amount of Rs.30,000/- from him and agreed to repay with interest @ 24% P.A. and executed the suit promissory note in favour of the plaintiff. Subsequently, the defendant paid Rs.5,000/- on 30.10.2006 and Rs.100/- on 7.05.2008. On both occasions defendant himself made acknowledgments of such part payments on the reverse side of the promissory note. Subsequently as the defendant failed to repay the balance due, plaintiff got issued a notice of demand dated 03.03.2009 to which there was no response from the defendant and therefore claiming the principal and interest accrued there on the suit is laid for Rs.63,380/-.
4. In contest defendant filed a written statement. That the suit promissory note and payment endorsements are created and forged. That there are disputes between him and the plaintiff and therefore plaintiff filed the suit to harass him. It is pleaded that the date of pronote was originally 10.01.2003 and to save limitation plaintiff altered it as 10.11.2003. The suit is barred by limitation. He also pleaded that on 12.08.2004 there was a settlement between both parties and that debt was only Rs.10,500/- and defendant paid Rs.5,000/- and plaintiff passed a receipt. Subsequently, he repaid the balance also. However, plaintiff filed the false suit and therefore he sought for dismissal of it.
5. On these rival pleadings the learned trial Court settled the following issues for trial:-
2. Whether the suit promissory note is a forged one brought into existence due to disputes/strained relationship of both parties?
3. Whether the plaintiff is entitled for the suit amount as prayed for?
4. To what relief?”
6. In support of their contentions, plaintiff deposed as Pw.1 and an attestor to the promissory note deposed as Pw.2. As against that defendant deposed as Dw.1. On behalf of plaintiff the pronote was marked as Ex.A1 and two payment endorsements are marked as Exs.A2 and A3 respectively. A notice dated 03.03.2009 issued by plaintiff was marked as Ex.A4. As against that a notice dated 11.02.2004 got issued on behalf of plaintiff and received by defendant was marked as Ex.B1. The receipt for Rs.5,000/- bearing date 12.09.2004 was marked as Ex.B2. The learned trial Court considered the evidence on both sides and the arguments on both sides and observed that defendant as Dw.1 admitted that there were no disputes between him and the plaintiff and there were no disputes between him and Pw.2/the attestor. On the evidence of Pws.1 and 2 it found that, having borrowed Rs.30,000/- defendant executed Ex.A1 promissory note and that is a true and valid document. The contention of the defendant that, he had given a blank pronote to the plaintiff was dis-believed by the learned trial Court recording a finding that during the course of cross examination of defendant/Dw.1 was shown Ex.A1 pronote and he categorically stated that the blank pronote he had given to plaintiff is different from Ex.A1 promissory note. Since the defendant disputed his signatures, learned trial Court observed that it had compared signatures on Ex.A1 as against admitted signatures of defendant available on Vakalath and written statement and chief examination affidavit in terms of Section 73 of Indian Evidence Act and found that all of them are similar and identical. Observing that evidence of P
Kondiba Dagadu Kadam v. Savitkibai Sopan Gujar
The court reaffirmed that the burden of proof regarding the authenticity of a promissory note lies with the party alleging forgery, and the evidence must be evaluated on the preponderance of probabil....
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....
The court emphasized that ocular evidence, such as the testimony of witnesses, can outweigh the opinion of a handwriting expert. The court held that the plaintiff's evidence, including the validity o....
The presumption of execution in promissory notes under the Negotiable Instruments Act outweighs claims of fabrication by the defendant without substantial evidence.
The presumption of consideration applies to promissory notes once execution is admitted, placing the burden on the defendant to prove otherwise.
The burden of proof lies with the Plaintiff to establish the execution and validity of the promissory note, and the Court can compare signatures to determine authenticity.
The courts affirmed the validity of a promissory note based on direct evidence, emphasizing that expert testimony is weak and should not override substantive evidence.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.