IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
T. Mallikarjuna Rao, J.
Pericharla Sudara Vijaya Lakshmi – Petitioner
Versus
Kusampudi Buchiraju Died – Respondent
Appeal Suit No. 301 of 2009
Decided On : 21-07-2023
| Table of Content |
|---|
| 1. facts of the case and relationships among parties. (Para 1 , 2 , 4) |
| 2. details of proceedings, claims, and counterclaims. (Para 5 , 6 , 8) |
| 3. arguments regarding the capacity to lend and onus of proof. (Para 10 , 11 , 29) |
| 4. court's reasoning on execution and validity of promissory notes. (Para 12 , 55) |
| 5. conclusion and order of the court regarding the appeal. (Para 56 , 57) |
JUDGMENT :
1. The Appeal, under Section 96 of the Code of the Civil Procedure, is filed by the appellants/Defendants 3 and 4 challenging the decree and Judgment dated 21.01.2009 in O.S.No.19 of 2005 passed by the learned Senior Civil Judge, Kothapeta, East Godavari District (for short, ‘trial court’). Respondents 4 to 6 are the defendants 1, 2 and 5 in the said suit.
2. Respondents 1 to 3 are the plaintiffs, who filed the suit in O.S.No.19 of 2005 seeking recovery of Rs.3,95,065/-from the defendants personally and from their movable and immovable properties and by proceeding against the assets of deceased P.Satyanarayana Raju with subsequent interest @ 12% p.a., from the date of suit till the date of realization.
3. The parties will hereinafter be referred to as arrayed before the trial Court.
4. The facts leading to the present Appeal, in a nutshell, are as under:
(a) The 1st defendant is the husband of 5th defendant and the 2nd defendant is their son. The 3rd defendant is the wife of P.Satyanarayana Raju, the son of defendants 1 and 5. The 4th defendant is the son of 3rd defendant, and the said P.Satyanarayana Raju. The 1st defendant is the Manager of the joint family consisting of defendants 1 to 5. For the joint family necessities, they borrowed money from the 1st plaintiff through one of their members P.Satyanarayana Raju
(b) On behalf of the joint family, P.Satyanarayana Raju borrowed Rs.50,000/-each on 20.04.2002, 01.05.2002, 09.05.2002, and 23.11.2002, and he executed promissory notes in favor of the 1st plaintiff on those respective dates.
(c) Additionally, P.Satyanarayana Raju borrowed Rs.25,000/- each on 23.11.2002 and 13.12.2002, and Rs. 50,000/-on 10.04.2003 on behalf of the joint family. He also executed promissory notes in favor of the 1st plaintiff on those respective dates.
(d) All seven promissory notes were personally written and signed by P.Satyanarayana Raju, agreeing to repay the borrowed amounts along with an interest rate of 24% per annum to the 1st plaintiff.
(e) Subsequently, despite repeated demands made by the 1st plaintiff, the said P.Satyanarayana Raju did not repay any amounts towards discharge of the said debts, and he died on 06.01.2005. Vexed with the defendants' attitude, the plaintiff got issued a legal notice dated 04.04.2005 demanding the defendants to discharge the debts due under the said promissory notes. In response, the defendants 3 and 4 issued a reply notice on 12.04.2005 making false, frivolous and baseless allegations. The 2nd defendant avoided receiving the notice. Although the other defendants received the notices, but they did not respond. With no payments made by the defendants to clear the debts, the plaintiffs filed the suit seeking recovery of the claim.
(f) Subsequent to the filing of the suit, the sole plaintiff died, and plaintiffs 2 and 3 were added as legal representatives of the deceased 1st plaintiff.
5. Defendants 1 and 5 have filed their common written statement admitting the relationship as mentioned in the plaint and contended that the 1st defendant, 2nd defendant, is a minor represented by his mother, 5th defendant and late P. Satyanarayana Raju (husband of D.3 and father of D.4) partitioned their joint family properties and executed a registered partition deed dt.24.03.1970. Satyanarayana Raju was never authorized to borrow amounts for defendants 1 and 2. After the partition, defendants 1 and 2 and the 3rd defendant’s husband used to deal with their affairs independently and individually. The 1st defendant has sufficient movable and immovable properties; he had no necessity to instruct
Duggineni Seshagiri Rao, vs. Kothapalli Venkateswara Rao
Bharat Barrel and Drum Manufacturing Company Vs Amin Chand Payrelal
G. Venkata Rama Subbaiah Vs. D. Rasool Naik
Abbisetti Krishnamoorthy V. Singasani Raghuramaiah (died) per L.R.s
AI
The appellate court found the promissory note invalid due to lack of consideration and conflicting evidence, leading to the dismissal of the plaintiff's suit.
The burden lies on the defendants to rebut the presumption under Sec. 118 of the Negotiable Instruments Act by adducing convincing evidence to prove the non-existence of consideration.
The presumption of consideration under Section 118 of the Negotiable Instruments Act applies once execution of the promissory note is established, placing the burden on the Defendant to rebut this pr....
The main legal point established in the judgment is the presumption of consideration under Section 118 of the Negotiable Instruments Act and the burden of proof on the defendant to rebut this presump....
The presumption of consideration under Section 118 of the Negotiable Instruments Act can be rebutted by the defendant by showing that he had sufficient financial capacity and did not need to borrow m....
The court upheld the validity of promissory notes, emphasizing the defendant's failure to prove forgery or lack of capacity to lend, thus confirming the trial court's judgment.
The presumption of consideration under Section 118-A of the Negotiable Instruments Act applies unless disproven by the defendants.
The central legal point established in the judgment is the importance of proving the execution of a promissory note and the capacity to lend the claimed amount, especially when the execution is denie....
The presumption of validity under Section 118 of the Negotiable Instruments Act requires defendants to provide evidence to rebut the execution of a promissory note once established by the plaintiff.
A promissory note can be enforced without a succession certificate if its validity is established, and the absence of such a certificate does not render the decree a nullity.
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