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
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
AI
The plaintiff failed to prove the validity of the promissory note, which was deemed forged, leading to the appeal's success.
The appellate court found the promissory note valid and supported by consideration, reversing the trial court's dismissal of the suit.
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 court upheld the trial Court's judgment confirming the validity of the promissory note and the plaintiff's entitlement to recovery, emphasizing the burden of proof on the plaintiff.
The presumption of consideration applies to promissory notes once execution is admitted, placing the burden on the defendant to prove otherwise.
The plaintiff must discharge the legal burden of proving consideration for a promissory note, failing which the suit may be dismissed.
The presumption of consideration under Section 118-A of the Negotiable Instruments Act applies unless disproven by the defendants.
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 under Section 118 of the Negotiable Instruments Act arises when execution of a promissory note is established, placing the burden on the defendant to disprove the transaction.
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