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2003 Supreme(Ker) 521

Judges : K.S.RADHAKRISHNAN,PIUS C.KURIAKOSE
Lillykutty - Appellant
Versus
K.Lawrance - Respondent
Case No : AS.No. 311 of 2002, E.F.A. No. 51 of 2002
Decided On : 08/29/2003
Advocates Appeared :
For the Appellant: Vadakara V.V.N.Menon, T.M. Abdul Latheef, Advocate. For the Respondents : V.N.Achutha Kurup, B.S.Swathi Kumar, Government Pleader, K.Harilal, Bindu Sreekumar, Advocates.

Headnote:

Negotiable Instruments Act 1881 – Section 118, 138 – Documentary evidence – Testimony – Negotiable instrument – Execution of decree – Sale proceedings – Defendant is appellant in A.S. which arises out of judgment and decree in O.S. on file of Sub Court, Trivandrum – Suit was instituted for realisation of money based on two dishonoured cheques – Claim petitioners are appellants in E.F.A. which arises out of order in E.A. in O.S. of same court – Held, Therefore mere fact that payee’s name and amount shown in cheque are in different handwriting is not a reason for not honouring cheque by Bank – Banks would normally see whether instrument is that of drawer and cheque has been signed by drawer himself – Burden is therefore entirely on drawer of cheque to establish that date, amount and payee’s name are written by somebody else without knowledge and consent of drawer – In instant case, drawer of cheque has not discharged that burden – Apart from interested testimony of drawer, no independent evidence was adduced to discharge burden – Appeal is Dismissed

Judgment :-

Radhakrishnan, J.

Defendant is the appellant in A.S.no.311 of 2002 which arises out of the judgment and decree in O.S.No 375 of 1993 on the file of the Sub Court, Trivandrum. Suit was instituted for realization of money based on two dishonoured cheques. Claim petitioners are the appellants in E.F.A.No. 51 of 2002, which arises out of the order in E.A.No 32 of 1999 in O.S. No 375 of 1993 of the same court.

2. Plaintiff's case is that defendant while conducting a stationary shop by name M.F.Stores approached him and requested for a loan of Rs. 2,25,000/-. Since defendant was personally known to the plaintiff, he paid the said amount to the defendant on 6.3.1992. Defendant in turn handed over two cheques one dated 10.12.1992 for Rs 1 lakh (Ext.A4) and another dated 2.3.1993 for Rs 1,25,000/- (Ext.A3). The two post-dated cheques were issued by the defendant on the understanding that those cheques could be encashed on the dates shown therein. Defendant also agreed to pay interest at the rate of 18% per annum. Plaintiff presented the cheques for collection but the same were returned with the endorsement "funds insufficient". Fact of dishonour of the cheques was intimated to the defendant. Defendant assured that she would pay the amount within a week. Subsequently plaintiff understood that defendant was trying to alienate her property. Consequently suit was instituted for realization of Rs 2,65,000/- was interest at 18% from the defendant.

3. Defendant filed written statement resisting the suit. Case of the defendant is that the plaintiff has requested the plaintiff for financial help and the defendant helped. Plaintiff repaid the amount in March and August 1992. Defendant insisted for payment of interest at the rate of 24% per annum which the plaintiff refused to pay. Consequently they were on enmical terms. Further it was stated that the plaintiff owes money to the husband of the defendant. It is stated that the defendant came to know that two cheques were stolen from her custody and it was noticed that the plaintiff later made use of those stolen cheques. It was also stated that along with the cheques two signed blank stamp papers and the original document in respect of 5 cents of property comprised in survey No 2707 C of Kadakampilly village were also stolen. Defendant suspected that the two stolen cheques must have used for filing the suit. Plaintiff got himself examined as P.W. 1. P.Ws 2 to 5 were also examined and Exts. A1 to A4 (a) were marked. Defendant herself got examined as D.W.1 and Exts. B1 to B5 were marked. Exts. X1 to X3 were produced by the witnesses. The court below after considering the oral and documentary evidence came to the conclusion that the cheques were duly executed by the defendant and the plaintiff is entitled to realise the plaint claim. Consequently suit was decreed allowing the plaintiff to realise a sum of Rs 2,65,000/- with interest. Aggrieved by the same this appeal has been preferred.

4. Counsel appearing for the appellant submitted that there is every reason to believe that the plaintiff had used the two stolen cheques for laying the suit. Counsel also explained the circumstances under which the cheques were found missing and also submitted that the evidence adduced on the side of the plaintiff cannot be accepted since it is artificial. Counsel also submitted that the defendant had kept blank cheques in the office and she used to keep the same in the business premise itself and the handwriting shown in the cheques were not that of the defendant. It is stated that the cheques were filled up and presented for encashment. Counsel appearing for the respondent-plaintiff on the other hand submitted that the cheques were handed over to the plaintiff by the defendant after filling up the same and those cheques were not blank cheques and the allegation that the plaintiff had utilized the stolen cheques was denied. Facts would indicate, according to the counsel, that the defendant owes money to th




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