IN THE HIGH COURT OF JUDICATURE AT MADRAS
V.M. Velumani, J.
P. Paramasivan – Appellant
Versus
Ramalakshmi W/o S. Kandasamy – Respondent
S.A. Nos. 1462 to 1464 of 2000 & C.M.P. (MD) Nos. 13749, 13750 of 2000
Decided On : 07-11-2016
Negotiable Instruments Act - Sections 20 and 118 - Promissory Note - Principal and interest - Borrowed amount - Failed to repay said amount - Presumptions as to negotiable instruments - Appellant claiming a sum of Rs. 36,720/- together with interest at 12% p.a. According to first respondent, appellant borrowed a sum of Rs. 30,000/- on 04.05.1991 from him and executed Ex.B.1 – Promissory Note for said amount on same day - Appellant failed to repay principal and interest in spite of repeated demands and reminders - Therefore, first respondent issued a notice through his Advocate to appellant - Appellant did not receive said notice - Therefore, first respondent has filed a suit in O.S. for relief stated above - Second respondent filed a suit in O.S. before Principal Subordinate Court, against appellant claiming a sum of Rs. 17,000/- together with interest at 24% p.a. - Held, Appellant has contended that Ena Konar is close to first respondent and first respondent only introduced him to appellant - This contention is an afterthought, as there is no material on record to show that appellant took any steps to summon said Ena Konar to depose on his behalf - Entire amount borrowed from first respondent was repaid and disputes arose during July 1991 between first respondent and appellant - But, appellant has not taken any steps for recovery of two blank promissory notes till when he gave a complaint - when he issued a notice to first respondent - learned I Additional District Judge, took note of these facts and fact that appellant took return of discharged promissory notes from Ena Konar, after discharging loan taken from him, rejected contention that he gave two blank promissory notes to first respondent and he did not return same even after appellant discharged the entire loan taken from first respondent - Provisions of Sections 20 and 118 of Negotiable Instruments Act - There is no error in law in reasoning and conclusion of learned I Additional District Judge - Substantial question of law is answered against appellant - Second appeals dismissed.
V.M. Velumani, J.
1. These Second Appeals have been filed against the common judgment and decree dated 06.11.1998, made in A.S. Nos. 135, 134 and 131 of 1997 on the file of the I Additional District Court, Tirunelveli, reversing the common judgment and decree, dated 28.02.1997, made in O.S. Nos. 61 of 1993, 131 of 1994 and 59 of 1993, on the file of the Principal Subordinate Court, Tirunelveli.
2. The appellant succeeded in the Trial Court, but lost in the first appellate Court.
3. For convenience, the parties are referred to as appellant [P. Paramasivan], first respondent [S. Kandasamy] and second respondent [Ramalakshmi].
4. Facts of the case:
(i) The first respondent filed a suit in O.S. No. 59 of 1993 before the Principal Subordinate Court, Tirunelveli, against the appellant claiming a sum of Rs. 36,720/- together with interest at 12% p.a. According to the first respondent, the appellant borrowed a sum of Rs. 30,000/- on 04.05.1991 from him and executed Ex.B.1 – Promissory Note for the said amount on the same day. The appellant failed to repay the principal and interest in spite of the repeated demands and reminders. Therefore, the first respondent issued a notice [Ex.B.5] dated 05.11.1992 through his Advocate to the appellant. The appellant did not receive the said notice. Therefore, the first respondent has filed a suit in O.S. No. 59 of 1993 for the relief stated above.
(ii) The second respondent filed a suit in O.S. No. 61 of 1993 before the Principal Subordinate Court, Tirunelveli, against the appellant claiming a sum of Rs. 17,000/- together with interest at 24% p.a. According to the second respondent, the appellant borrowed a sum of Rs. 17,000/- on 27.06.1991 from her and executed Ex.B.4 – Promissory Note for the said amount on the same day. The appellant failed to repay the said amount and interest in spite of the repeated demands and reminders. Therefore, the first respondent issued a notice [Ex.B.7] dated 05.11.1992 through her Advocate to the appellant. The appellant did not receive the said notice. Therefore, the second respondent has filed a suit in O.S. No. 61 of 1993 for the relief stated supra.
(iii) The appellant filed written statement in both the suits denying the allegations made by the respondents 1 and 2 and submitted that he borrowed only a sum of Rs. 5,000/- in the month of February 1991 from the first respondent and another sum of Rs. 5,000/- in the month of March 1991 from the first respondent and executed two blank promissory notes signed by him on stamp papers. The appellant and the first respondent are residing in the same Street and known to each other. Therefore, believing the first respondent, he gave two blank promissory notes duly signed by him. The first respondent insisted on repayment of entire amounts borrowed by him. Therefore, the appellant borrowed a sum of Rs. 10,000/- from one Ena Konar on 14.06.1991 and repaid the entire amount together with interest to the first respondent on 14.06.1991. The first respondent promised to return the blank promissory notes, but failed to do so. The first respondent was the President of Temple Committee in Shanthi Nagar Vinayagar Temple and the appellant was a Committee Member. Due to mismanagement of the first respondent, the appellant resigned his post and misunderstanding arose between them. The appellant gave complaint on 27.08.1992 to the police and issued a notice dated 28.08.1992 to the first respondent, who did not receive the said notice. Due to misunderstanding, the first respondent has filled up the blank promissory notes and the respondents 1 and 2 have filed the suits. Therefore, the appellant prayed for dismissal of the suits, as he did not borrow Rs. 30,000/- and Rs. 17,000/- and repaid the entire amount of Rs. 10,000/- borrowed from the first respondent.
(iv) The appellant filed O.S. No. 296 of 2013 before the District Munsif Court, Tirunelveli, against the first respondent, for return of two stamped blank promissory notes executed
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