IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
V. GOPALA KRISHNA RAO, J.
Atluri Anuradha W/o Late Venkateswara Rao – Appellant
Versus
Nuvvula Venkata Raju S/o Haranadha Rao – Respondent
Appeal Suit No. 755 of 2008
Decided On : 12-08-2024
Promissory Notes - Recovery of Debt - CPC Section 96 - The court upheld the validity of promissory notes executed for loans, emphasizing the burden of proof on defendants to disprove execution and consideration, as per Section 118-A of the Negotiable Instruments Act.
Fact of the Case:
The plaintiff filed a suit for recovery of Rs.9,03,875 based on two promissory notes executed by the deceased, which the defendants claimed were forged. The plaintiff argued that the notes were valid and binding, while the defendants denied knowledge of the plaintiff and the transactions.
Finding of the Court:
The court found that the plaintiff provided sufficient evidence to prove the execution and consideration of the promissory notes, while the defendants failed to substantiate their claims of forgery.
Issues: Whether the promissory notes were forged and whether the plaintiff was entitled to recover the claimed amount.
Ratio Decidendi: The court held that the burden of proof lies on the defendants to disprove the validity of the promissory notes once the plaintiff establishes their execution and consideration.
Result: The appeal was dismissed, confirming the trial court's judgment in favor of the plaintiff.
JUDGMENT :
V. GOPALA KRISHNA RAO, J.
1. This Appeal, under Section 96 of the Code of Civil Procedure [for short ‘the C.P.C.’] is filed by the Appellants/defendants challenging the Decree and Judgment, dated 07.07.2008, in O.S. No. 455 of 2005 passed by the learned I Additional Senior Civil Judge, Kakinada [for short ‘the trial Court’]. The Respondent herein is the plaintiff in the said Suit.
2. The respondent/plaintiff filed the Suit for recovery of a sum of Rs.9,03,875/- being the principal and interest due on two promissory notes dated 15.12.2003 and 15.04.2004 executed by one Atluri Venkateswara Rao in favour of plaintiff for Rs.3,50,000/- each and for costs.
3. Both the parties in the Appeal will be referred to as they are arrayed before the trial Court.
4. The brief averments of the plaint, in O.S. No. 455 of 2005, are as under:
5. The first defendant filed a written statement by denying all the averments mentioned in the plaint and further contended as under:
6. The defendants 2 and 3 remained ex-parte in the trial Court itself.
7. Based on the above pleadings, the trial Court framed the following issues:
(ii) Whether the suit pronote dated 15.04.2004 is a forged and fabricated one?
(iii) Whether the plaintiff is entitled to recover the suit claim?
(iv) Whether the defendant travelled with one Atluri Venkateswara Rao from Tirupati to Samalkot on 16.04.2004 bearing PNR No. 1324140936 in S5 Coach and was not present on 15.04.2004 in Kakinada?
(v) To what relief?
8. During the course of trial in the trial Court, on behalf of the Plaintiff, PW1 and PW2 were examined and Ex.A1 and Ex.A2 were marked. On behalf of the Defendants DW1 and DW2 were examined and Ex.B1 was marked.
9. After completion of the trial an
The presumption of consideration under Section 118-A of the Negotiable Instruments Act applies unless disproven by the defendants.
The presumption of consideration under Section 118-A of the Negotiable Instruments Act applies unless disproven by the defendants.
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 applies to promissory notes once execution is admitted, placing the burden on the defendant to prove otherwise.
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 appellate court found the promissory note valid and supported by consideration, reversing the trial court's dismissal of the suit.
The plaintiff failed to prove the validity of the promissory note, which was deemed forged, leading to the appeal's success.
The presumption of validity of a promissory note under the Negotiable Instruments Act can only be rebutted by the defendant through substantial evidence, which was not provided.
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 appellate court found the promissory note invalid due to lack of consideration and conflicting evidence, leading to the dismissal of the plaintiff's suit.
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