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2024 Supreme(AP) 1336

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
V. GOPALA KRISHNA RAO, J.
Rayadurgam Balasubramanyam – Appellant
Versus
C. Venkataramanaiah – Respondent
Appeal Suit No. 1920 of 1999
Decided On : 06-09-2024

Advocates:
Advocate Appeared:
For the Appellant : M. Vengaiah and V. Jagapathi
For the Respondent: O. Manohar Reddy and P. Sravan Kumar

The plaintiff failed to prove the validity of the promissory note, which was deemed forged, leading to the appeal's success.

Headnote:(A) Code of Civil Procedure, 1908 - Section 96 - Promissory Note - Suit for recovery of Rs.1,19,600/- based on a promissory note executed by the defendant - The trial Court decreed the suit, but the defendant contended the note was forged and lacked consideration - The court found the plaintiff failed to prove the validity of the promissory note and that it was not binding on the defendant. (Paras 1, 2, 6, 22)

(B) Burden of Proof - The initial burden lies on the plaintiff to prove the genuineness of the promissory note, especially when the defendant claims it is forged. (Paras 12, 21)

Facts of the case:
The plaintiff filed a suit for recovery based on a promissory note executed by the defendant, who denied the execution and claimed it was forged. The trial Court decreed the suit, leading to the appeal.

Findings of Court:
The court found that the promissory note was not true, valid, or binding on the defendant, and the trial Court's decree was set aside.

Issues: The main issues were whether the promissory note was valid and whether the trial Court was justified in decreeing the suit.

Ratio Decidendi: The court ruled that the plaintiff did not meet the burden of proof to establish the promissory note's validity, leading to the conclusion that the trial Court's judgment was erroneous.

Result: Appeal allowed, and the trial Court's decree set aside.

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 Appellant/defendant challenging the Decree and Judgment, dated 12.07.1999, in O.S. No.260 of 1993 passed by the learned Additional Senior Civil Judge, Tirupati [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.1,19,600/- being the principal and interest due on a promissory note dated 12.03.1991 executed by the defendant in favour of plaintiff in renewal of earlier pronotes and simple mortgage deed 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.260 of 1993, are as under:

    The plaintiff is doing business in Bakery at A.P.S.R.T.C. Central Bus Station and he is owning lands at Taduku to an extent of Ac.2.00 cents and he is a small farmer holding small extent of Ac.2.00 cents. He desired to purchase the lands of defendant at Taduku village, where defendant is having lands and also at several other places including Taduku, Kasimkuppam etc., further, the defendant is doing business in poultry at Puttur having two poultry forms and now he is also doing contracts. In order to meet the poultry and other business commitments, the defendant used to borrow amounts from time to time from the plaintiff, since the defendant is an educated, reliable person and being a close relative of the plaintiff, coupled with the fact that the defendant was ready to sell his lands at Taduku to this plaintiff, out of confidence, plaintiff having borrowed money from others, lend various amounts on various dates to the defendant. The friends of plaintiff advised the plaintiff to have a consolidated pronote for the prior debts, for which the defendant agreed, because of close relationship and with an understanding to sell the defendant's lands situated at Taduku, principal borrowed amounts only were totalled without interest, which was arrived at Rs.92,000/-, for which on 12.03.1991 itself a consolidated pronote was executed by the defendant in favour of the plaintiff for Rs.92,000/- with 12% p.a. simple interest. Subsequently, when the defendant and the plaintiff went to Sub- Registrar's Office, Puttur to get the valuation particulars for registration, the father-in-law of defendant came and objected for registration, since he is having minor grand children and hence stamps could not be purchased and at the evil advise of the father-in-law of defendant, the defendant has shifted his residence from his native place from Taduku to his father-in-law's village at Cherlopalli and inspite of several mediations, the defendant evaded to respond. Inspite of receipt of legal notices, the defendant failed to discharge the pronote debt.

5. The defendant filed a written statement by denying all the averments mentioned in the plaint and further contended as under: -

    The defendant neither executed the suit pronote nor received any consideration and there was no prior debts due to the plaintiff by the defendant, the suit pronote is a forged document and the defendant is taking necessary steps to send the suit pronote to the hand writing expert to prove his case and to disprove the case of the plaintiff. The defendant has got another brother and there are civil cases also pending for the family properties. This defendant and his brother have divided their properties long back and this defendant got only Ac.2.00 cents towards his share. This defendant never had any business dealings much less poultry and borewell contracts. This defendant is a small farmer and he has no other income except agriculture. This defendant neither agreed to sell his properties to the plaintiff nor the defendant's father-in-law objected for registration of the lands. This defendant never received any notices before the suit notice and the suit pron

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