IN THE HIGH COURT OF JUDICATURE AT MADRAS
N.SATHISH KUMAR, J.
Ashok Kumar – Appellant
Versus
Mrs. Latha – Respondent
A.S.No.396 of 2011 and M.P.No.1 of 2011
Decided On : 04-05-2017
Negotiable Instruments Act - Section 43, 118 - Evidence Act - Suit for recovery of money - Sake of convenience – Dishonor of Cheque - Defendant has borrowed a sum amount from plaintiff to meet her business and family requirements, and executed a promissory note in favour of the plaintiff, agreeing to repay the same on demand with interest at 12% per annum. Thereafter, the defendant had been avoiding the plaintiff and she had never paid any interest so far and when the plaintiff approached the defendant during second week and demanded the principal sum back together with accrued interest up to date, she was quoting lame excuses - Held, publication was issued is also a publication issued by the defendant B3 has been filed to show that one Sampath said to be close friend of Vetrival also filed another case against the defendant - Though these documents were not germane for consideration the admission of P.W.1 that is also interested in the case clearly probabilize the defence theory that the plaintiff is only name lender and he has failed to prove the passing of consideration. Therefore, Ex.A1 cannot be enforceable in the Court of law - Appeal is dismissed
Aggrieved over the dismissal of the suit filed for recovery of a sum of Rs.10,82,250/- with subsequent interest at 12% per annum on a pronote dated 1.7.2009, the present appeal came to be filed by the plaintiff.
For the sake of convenience, the parties are arrayed as per their own ranking before the trial Court.
2. Brief facts of the plaintiff's case is as follows:-
The defendant has borrowed a sum of Rs.9,75,000/- on 1.7.2009 from the plaintiff, to meet her business and family requirements, and executed a promissory note in favour of the plaintiff, agreeing to repay the same on demand with interest at 12% per annum. Thereafter, the defendant had been avoiding the plaintiff and she had never paid any interest so far and when the plaintiff approached the defendant during the second week of May 2010 and demanded the principal sum back together with accrued interest up to date, she was quoting lame excuses. Hence, the plaintiff has issued a legal notice on 17.5.2010. However, the defendant has not chosen to repay the amount but she had sent a false reply. Hence the suit.
3. The defendant in the written statement denying the borrowal of Rs.9,75,000/- and execution of pronote. It is the contention of the defendant that there was no privity of contract between the plaintiff and defendant. She does not even know the plaintiff. She never borrowed any money from the plaintiff nor executed any pronote in favour of the plaintiff. The pronote is a fabricated one. While there was cordial relationship between defendant and her husband, her husband obtained her signature and thumb impression in blank stamp papers, plain papers and cheques for the purpose of business transaction. Her husband and one Vetrivel were close friends. As soon as the defendant came to know about the fact that her husband had handed over some blank documents to Vetrivel, she had issued legal notice to the said Vetrivel on 4.3.2010 and 4.5.2010 and also issued a publication on 5.5.2010, in this regard. Besides this the defendant has also filed a suit against the said Vetrivel in respect of Minor's property in O.S.No.36 of 2010. The said Vetrivel, taking advantage of the signature and thumb impression of the defendant available in the blank paper, had created a forged document and filed this suit. Hence, she prays for dismissal of the suit.
4. On the basis of the above pleadings, the following issues were framed by the learned trial Court:-
1. Whether the plaintiff is entitled to recover sum of Rs.9,75,000/- with subsequent interest at the rate of 12% p.a. till date of realization?
2. Whether the suit pronote dated 1.7.2009 is forged as stated in the statement?
3. To what relief if any the plaintiff is entitled to?
5. On the side of the plaintiff P.W.1 to P.W.3 were examined and marked documents Ex.A1 to A4. On the side of the defendant D.W.1 was examined and marked documents Ex.B1 to B3.
6. The learned trial Court on the basis of the evidence and materials, came to the conclusion that the plaintiff failed to prove the execution of documents and also the passing of consideration of Rs.9,75,000/- and accordingly, dismissed the suit. Aggrieved over the same, the present appeal came to be filed by the plaintiff.
7. The main contention of the learned counsel for the appellant is that the learned trial Court has wrongly placed burden on the plaintiff to prove the execution of pronote by the defendant. P.W.1 to P.W.3 have categorically spoken about the execution of the pronote. Once the execution is proved, the burden shifts on the defendant to rebut the same. But absolutely there is no evidence whatsoever available on record to show that the defendant has brought on evidence to dislodge the legal presumption attached to the pronote. Hence, it is the contention of the learned counsel for the appellant that P.W.1 to P.W.3 have not only spoken about the execution of the pronote but also spoken about the passing of consideration. Therefore, the learned trial Court has wrongly pla
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