Andhra Pradesh High Court
Maddula Kasi Viswanadham - Appellant
Versus
Chalasani Radhakrishnarao - RESPONDENT
Decided On: 04-20-72
NEGOTIABLE INSTRUMENTS ACT, 1881 - SECTION 8, 78 - TRANSFER OF PROPERTY ACT, 1882 - SECTION 130, 137 - MADRAS AGRICULTURISTS RELIEF ACT, 1938 - SECTION 13 - USURIOUS LOANS ACT, 1918 - SECTION 3(2)(B) - PROMISSORY NOTE - ENFORCEABILITY - TRANSFER OF DEBT - AGRICULTURIST - INTEREST - USURIOUS LOANS.
Fact of the Case:
Plaintiff filed a suit to recover a balance due on a promissory note executed by the defendant. The defendant contended that he had not received any amount from the plaintiff, that the debt due by him was to the Choudhary Jewellery Mart and the plaintiff alone has no right to file the suit on the basis of the suit promissory note. He further contended that he is an agriculturist and the debt has to be scaled down.
Finding of the Court:
The court held that the plaintiff is entitled to enforce the suit promissory note, that the defendant is not an agriculturist and the debt is therefore not liable to be scaled down, but the amount due from the defendant is only Rs. 1,100.00 the plaintiff is not entitled to interest on the balance of the amount due under the promissory note, that the set-off claimed by the defendant has not been established.
Issues: 1. Whether the suit is maintainable in the name of the plaintiff? 2. Whether the transfer of debt is hit by the provisions of Section 130 of the Transfer of Property Act? 3. Whether the defendant is an agriculturist and the debt should be scaled down? 4. Whether the defendant is liable to pay interest on the amount of Rs. 1,100.00?
Ratio Decidendi: 1. The court held that the suit is maintainable in the name of the plaintiff as the promissory note is executed in his personal name and he is the holder of the promissory note under Section 8 of the Negotiable Instruments Act. 2. The court held that the transfer of debt is not hit by the provisions of Section 130 of the Transfer of Property Act as Section 137 of the Transfer of Property Act exempts negotiable instruments from the operation of that Act. 3. The court held that the defendant is not an agriculturist as he had not established that he is an agriculturist on the date of the institution of the proceeding as required under Section 13 of the Madras Agriculturists Relief Act. 4. The court held that the defendant is liable to pay interest on the amount of Rs. 1,100.00 as he had voluntarily executed a promissory note, which included the principal of Rs. 1,100.00 and also interest thereon that had accumulated upto that date.
Final Decision: The appeal was dismissed with costs.
( 1 ) THIS Second Appeal is by the defendant in O. S. 39/69 on the file of the Pri. District Munsif. Eluru against the judgment of the District Judge. West Godavari, confirming in appeal the decree passed in the suit by the trial Court.
( 2 ) THE suit was for the recovery of a sum of Rs. 4,191-89 being the balance due on Pronote executed by the defendant on 30-3-1957. The plaintiff contended that he was the partner of Choudhary Jewellery Mart along with one K. Narayanarao, that the defendant borrowed some monies for his agricultural purposes from the firm; that on accounts being looked into it was found that he wad due a sum of Rs. 1,860-14-0 and from this sum he executed the promissory note in his favour as per the arrangement between him and his partners and thereafter the defendant had paid three sums of Rs. 10. 00, 10/- and 300/- and the balance is due and hence the suit.
( 3 ) THE defendant contended that he had not received any amount from the plaintiff, that the debt due by him was the Choudhary Jewellery Mart and the plaintiff alone has no right to file the suit on the basis of the suit promissory note. He further contended that he had borrowed only a sum of Rs. 1,100. 00 from the firm. Choudhary Jewellery Mart; that though there was no agreement for payment of interest it was calculated and included and the suit promissory note was executed for Rs. 1,860-14-0 and that the interest is therefore not liable to be paid. He further contended that he is an agriculturist and the debt has to be scaled down, that the plaintiff had taken on lease some grazing land from him and on that account he had to pay for two different period a sum of Rs. 500. 00 and 250/- that he had also paid on behalf of the plaintiff a sum of Rs. 80. 00 to Kamas of Kovvali for raising fencing for 50 acres of his land and for watching charges, that these amount had been agreed to be adjusted towards the debt due on the promissory note and be is also entitled to count interest on the same.
( 4 ) ON appropriate issues being framed the trial Court held that the plaintiff is entitled to enforce the suit promissory note, that the defendant is not an agriculturist and the debt is therefore not liable to be scaled down, but the amount due from the defendant is only Rs. 1,100. 00 the plaintiff is not entitled to interest on the balance of the amount due under the promissory note, that the set-off claimed by the defendant has not been established and in that view decreed the suit for Rupees 3,105-15 with interest on Rs. 1,100. 00 at 6% P. A. from the date of the plaint till realisation.
( 5 ) ON the defendant filing an appeal the plaintiff filed cross-objections claiming interest that was disallowed to him. The district Judge confirmed all the findings of the trial Court except the one on the question of interest and held that as the promissory note was executed for Rs. 1,860-14-0 including interest on Rs. 1,100. 00 upto the date of the promissory note, the plaintiff is entitled to the same as stipulated in the promissory note and also to interest thereon. Therefore while dismissing the appeal, he allowed the cross-objections. Hence this appeal by the defendant.
( 6 ) IN this appeal it is first contended that the debt was due to the firm of Choudhary Jewellery Mart and for that debt a promissory note was executed and the suit filed by the plaintiff in his personal name is not maintainable and for this contention the learned counsel relied on the decision in Davvura Jayarama Reddy v. Revathi Mica Co. , 1972-1 Andh WR 7. That was a case where the suit was filed by the firm for the debt due to the firm and it was also pointed out that what was mentioned in the preamble of the promissory note was that it was executed in favour of the partner of Revathi Mica Company and that his name was mentioned thereafter as Ganagapatanam Venkata Subba reddy, that Revathi Mica Company is and therefore the suit filed by it is maintainable. In the present case, the
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