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2014 Supreme(Mad) 3945

Before the Madurai Bench of Madras High Court
P. DEVADASS, J.
Mahalingam
Versus
Mayalagu
Second Appeal (MD) No. 294 of 2010 & M.P.(MD) No. 1 of 2010
Decided on : 03-11-2014

Advocates Appeared:
For the Appellant:R. Sundar Srinivasan, Advocate.
For the Respondent:A. Arun Prasad, Advocate.

Headnote:

Negotiable Instruments Act - Section 87 - Blank promissory note – Dishonor of cheque - No salary was paid - Suit has been resisted by appellant/defendant contending that he has been employed in respondents finance firm since no salary was paid when he demanded he was paid as against a blank promissory note subsequently he repaid to partner of said finance firm under a receipt and subsequently he had paid remaining and discharged – However respondent filled up blank promissory note and made it suit promissory note thus he is not liable to pay any amount to him - Trial Court framed necessary issues and tried suit - Plaintiff examined himself as P.W.1 and scribe as P.W.2 and marked Exs.A1 to A4 - Defendant examined himself as P.W.1 and did not let in any documentary evidence - In Trial Court a new turn has taken place - Defendant noticing alteration overwriting number in Ex.A1 contended that it is material alteration and Ex.A1 is a void instrument and it cannot be enforced in a Court – Held, It is intended to extend period of time - Normally such corrections are accepted after attestation - But in Ex.A1 no such attestation - Theory of routine correction comes only for first time when P.W.2 comes to witness box and such an answer has not been given by P.W.1 - There is alteration in Ex.A1as to certain vital aspect as to year - It is an alteration as to time factor in Ex.A1 - In such circumstances Trial Court examined this factual situation and applied true position of law with regard to Section 87 of Negotiable Instruments Act and came to conclusion that it is a vital alteration and it is invalid and it cannot be enforceable in a Court of law and refused to grant decree – However First Appellate Court did not viewed matter in proper perspective and it had come with its own conclusion even that is not version in plaint and that is not plaintiffs evidence - Ex.A1 came to be exhibited by plaintiff in Trial Court - It came from possession of plaintiff - In such circumstances onus is upon plaintiff to explain that it was not subjected to any material alteration - As regards alteration P.W.1 did not open his mouth - Almost P.W.2 has become a proxy for P.W.1 on aspect of alteration in Ex.A1 – Therefore Trial Court has correctly viewed factual matrix and correctly applied law – However this has been missed by First Appellate Court and First Appellate Court misread evidence and misdirected itself and that has resulted in reversing well considered Judgment of Trial Court – Thus this Court is of view that Ex.A1 is affected by material alteration as such it is void and it cannot be enforced in a Court of law – Thus substantial question of law is answered as against respondent/plaintiff - Appeal is allowed

Judgment :

The defendant, who succeeded in the Trial Court, namely, District Munsif, Devakottai, in O.S.No.121 of 2005, and who lost in the 1st Appellate Court, namely, Sub Court, Devakottai, in A.S.No.4 of 2009 is before us.

2. The respondent/plaintiff claimed Rs.71,775/-towards principal and interest based on Ex.A1, promissory note, dated 13.04.2003. Inspite of receipt of suit notice, dated 25.08.2005, since no amount was paid, the suit has been instituted by the appellant/defendant.

3. The suit has been resisted by the appellant/defendant contending that he has been employed in the respondent's finance firm, since no salary was paid, when he demanded, he was paid Rs.10,000/- as against a blank promissory note during 2000, subsequently, he repaid Rs.5,000/-to Mr. Srinivasan, partner of the said finance firm, under a receipt and subsequently he had paid the remaining Rs.5,000/- and discharged. However, the respondent filled up the blank promissory note and made it suit promissory note, thus, he is not liable to pay any amount to him.

4. The Trial Court framed necessary issues and tried the suit. Plaintiff examined himself as P.W.1 and the scribe as P.W.2 and marked Exs.A1 to A4. The defendant examined himself as P.W.1 and did not let in any documentary evidence.

5. In the Trial Court, a new turn has taken place. Defendant noticing alteration, overwriting the number 3' in the year namely 2003 in Ex.A1, contended that it is material alteration and Ex.A1 is a void instrument and it cannot be enforced in a Court.

6. The Trial Court examined the said contention in the light of cross-examination of P.Ws.1 and 2 and concluded that it is a material alteration and held that Ex.A1 is a void document, it cannot be enforced in a court of law and thus dismissed the suit.

7. In the circumstances, the plaintiff appealed to the Subordinate Court, Devakottai, in A.S.No.4 of 2009.

8. The First Appellate Court of the view that it is a correction of a mistake occurred in Ex.A1 and it also noticed that there was no plea in the written statement with regard to material alteration, thus it had vacated the Decree and Judgment of the Trial Court and decreed the suit.

9. In the circumstances, defendant preferred this Second Appeal.

10. At the time of admission of the second appeal, the then learned Brother framed the following substantial question of law:

Whether the Lower Appellate Court is right in decreeing the suit when they are material alteration regarding the year of the pronote and in Ex.A4 it has been stated that the defendant agreed to pay the amount in January, 2003, while the pronote was dated April, 2003?

11. The learned counsel for the appellant/defendant contended that Ex.A1 has been exhibited during trial and the defendant had the opportunity to discover the material alteration in Ex.A1 only then, the cat came out of the bag. Further, in his cross-examination P.W.1 candidly admitted the alteration in respect of the year namely 2003 in Ex.A1. Under these circumstances, applying Section 87 of Negotiable Instruments Act, the Trial Court had rightly termed Ex.A1 a void instrument and thus dismissed the suit. However, it's decision has been simply upset by the Appellate Court without any valid and convincing reason.

12. The learned counsel for the appellant further contended that the law relating to material alteration has been dealt with in Section 87 of Negotiable Instruments Act. He would submit that alteration as to the date in an instrument, such as promissory note, which is in the nature of extending the time, is a material alteration and that will destroy the legal character of the promissory note.

13. In support of his contention, the learned counsel cited the following rulings:

i. Allampatti Subba Reddy v. Neelapareddi (AIR 1966 A.P. 267);

ii. Jayantilal Goel v. Tmt.Zubeda Khanum, (AIR 1986 A.P. 120);

iii. This Court's decision in S.A.No.824 of 1999, dated 12.01.2012, (Periyasamy vs. Jayaraman).

14. On the other hand, the
























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