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2023 Supreme(AP) 765

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

Advocates:
Advocate Appeared:
For the Petitioner: P N Murthy
For the Respondent: P Durga Prasad

Headnote:(A) Code of Civil Procedure, 1908 - Section 96 - Negotiable Instruments Act, 1881 - Section 118 - Recovery of amount under promissory notes - Suit decreed for Rs.3,95,065/- with interest - Appeal against trial court's judgment by defendants rejected for lack of credible evidence against execution of promissory notes A2 to A7 - Defendants' contention for Ex.A1 dismissed as execution was unproven. (Paras 56, 10)

(B) Evidence and Burden of Proof - Plaintiffs have burden to establish execution and consideration for promissory notes under Sections 118(a) of N.I. Act, which was not rebutted by defendants, thus leading to upholding the decree. (Paras 52-55)

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

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