Back
Karnataka High Court
GUDDANGOUDA TIRAKANGOUDA - Appellant
Versus
SHIVAPPA GUDDAPPA -Respondent
Decided On : 11-20-80
The interpretation of Sections 28 and 118 of the Negotiable Instruments Act influenced the court's decision in dismissing the plaintiff's appeal.
Headnote:
Negotiable Instruments Act - Cheque - Interpretation of Sections 28 and 118 - The court held that the plaintiff could not benefit from Section 28 as the defendant's signature on the back of the cheque did not meet the requirements of the section. Additionally, the presumption under Section 118(1)(a) operated against the plaintiff.
Fact of the Case:
The plaintiff filed a suit against the defendant claiming a sum of Rs. 3,960, alleging that he had paid the amount by cheque as a handloan, while the defendant claimed that he received the cheque for encashment purposes.
Finding of the Court:
The trial and lower appellate courts found in favor of the defendant, concluding that the plaintiff had not proved the handloan and interest. The court dismissed the plaintiff's second appeal, stating that the plaintiff could not benefit from the relevant sections of the Negotiable Instruments Act.
Issues: Dispute over the nature of the transaction between the plaintiff and the defendant, and the applicability of Sections 28 and 118 of the Negotiable Instruments Act.
Ratio Decidendi: The court's decision was influenced by the interpretation of Sections 28 and 118 of the Negotiable Instruments Act, which did not support the plaintiff's claims.
Final Decision: The court dismissed the plaintiff's second appeal, finding no merit in the case.
( 1 ) THIS is a plaintiff's second appeal against the concurrent findings of the courts below.
( 2 ) THE plaintiff filed the suit against the defendant praying for a, decree in the sum of Rs. 3,960, Rs. 3,000 being the principal and Rs. 960 being the interest. The plaintiff stated that he paid by cheque the said amount as the defendant wanted a handicap.
( 3 ) THE defendant resisted the claim stating that he received the cheque only for purposes of encashment of the cheque and handing over the cash to the plaintitiff on account of the fact that on that particular day he was going on his official duties to the Bank at shiggaon.
( 4 ) THREE issues were framed by the trial Court placing the burden on both the plaintiff and the defendant equally as to their rival contentions and on appreciating the evidence came to the conclusion that the defendant's version was worthy of credence and therefore, the plaintiff had not proved that he had advanced the handloan of Rs. 3,000 muchless stipulating any interest. The lower appellate Court, more or less, followed the same reasoning as that of the trial Court.
( 5 ) MR. Bannurmath, learned Counsel appearing for the appellant made a slender attempt on the basis of S. 28 of the Negotiable Instruments Act, that on account of the fact that the defendant admitted his signature on the back of the counterfoil of the cheque, benefit of Section 28 of the Negotiable Instruments Act should go to the plaintiff. I do not see how this would be available to the plaintiff. S. 28 of the Negotiable Instruments act contemplates the signing of the instrument itself by the agent. In other words, the agent must be drawing the instrument himself and not merely affixing his signature in some part of the cheque or counterfoil as the case may be, not being the drawer or at the place marked for the signature of the drawer.
( 6 ) SIMILARLY, the learned Counsel's argument that S. 118 of the Negotiable instruments Act would come to his aid is neither here nor there. The presumption under S. 118 (1) (a) of the said Act is that the drawer of the cheque or a pronote or any other Bill of Exchange had so drawn it for consideration. This actually operates against the plaintiff and not against the defendant.
( 7 ) FOR these reasons there is no merit in this second appeal and therefore it is dismissed.
--- *** ---
.
