An admission of signature on a promissory note does not alone validate the claim if the lender fails to establish lawful origin and capacity to lend the amount, especially amidst noted familial animosity.

JUDGMENT

This Second Appeal had been filed to set aside the Judgment and Decree dated 06.01.2016 made in A.S. No. 44 of 2013 on the file of the learned Sub Judge, Udhagamandalam reversing the Judgment and Decree dated 27.09.2013 made in O.S. No. 98 of 2007 on the file of the learned District Munsif, Udhagamandalam.

2. The brief averments in the Plaint are as follows:-

The Defendant approached the Plaintiff for financial assistance and on 23.04.2004, the Plaintiff paid a sum of Rs.50,000/- to the Defendant. Upon receipt of the said amount, the Defendant executed a promissory note and promised to pay the Plaintiff, on demand, the sum of Rs.50,000/- with interest at 24% p.a. However, the Defendant failed to pay the amount to the Plaintiff in spite of repeated demands and hence, the Plaintiff issued a legal notice on 28.04.2005 to the Defendant calling upon him to pay the amount. The Defendant received the said notice, but did not issue any reply thereof. Therefore, the suit was filed for recovery of Rs.84,660/- representing Rs.50,000/- towards principal and Rs.34,660/- towards interest.

3. The brief averments in the written statement are as follows:-

The Defendant has denied the execution of the promissory note in favour of the Plaintiff as well as the receipt of Rs.50,000/- as loan. The Plaintiff and Defendant are brothers, but the Plaintiff has not even disclosed such relationship in the Plaint. The Plaintiff is the youngest brother of the Defendant and he was working as an ordinary staff in Hotel Vasantham at Charring Cross run by the brother-in-law of the Plaintiff and Defendant during the year 1996 and 1999. During the said period, the Defendant and his wife used to help financially his brother-in-law Mr. Easwaran to run the Hotel business. In the course of the said financial help to his brother-in-law, the Defendant out of good faith used to part with blank signed promissory notes, cheque leaves for emergency payment, for the Hotel business which was usually kept in the cash box. The Plaintiff who was having access to the cash box had taken away few blank signed promissory notes and cheques signed by the Defendant, misused the same after a lapse of several years due to previous and existing enmity. No consideration was passed at any point of time from the Plaintiff to the Defendant and hence there is no scope for executing the alleged promissory note. Further, there was no source for the Plaintiff to advance the alleged money and there is no necessity for the Defendant to borrow money from the Plaintiff. The Defendant was working in a Government Unit and was drawing a comfortable monthly salary of Rs.15,000/- per month. The relationship between the Defendant and his family with the Plaintiff strained as early as 2000 itself as the Plaintiff wanted to take over the entire Hotel business. Since then the Defendant is not in talking terms with the Plaintiff. On a Complaint given by the wife of the Defendant on 11.01.2003, a criminal case was registered in Cr.No.13/2003 for the offences punishable under Section s 75 and 354 IPC and the Plaintiff was prosecuted by the State. The Plaintiff and another brother of the Defendant indulged in criminal assault of the Defendant and on a Complaint given on 08.04.2003 a case in Cr.No.53/2003 was registered by the Ketti Police for the offences under Section s 341 and 323 of against the Plaint