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2025 Supreme(Online)(Tel) 67490

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
B.R.Madhusudhan Rao, J
Ravikanti Srikanth – Appellant
Versus
Lingampally Linga Rao – Respondent
A.S.NO.292 OF 2019



In a suit for recovery of money based on a promissory note, once the plaintiff discharges the initial burden of proving execution by examining the scribe and attesting witnesses, the burden shifts to the defendant to prove the allegation of forgery, failing which the court may decree the suit.

Headnote:(A) Civil Procedure Code, 1908 - Section 96 - Recovery of money - Suit promissory note - Execution of document - Burden of proof - Plaintiff discharged initial burden by examining witnesses and scribe - Plea of forgery - Failure of defendant to adduce evidence to prove forgery - Minor discrepancies in evidence of witnesses - Appellate court interference - Scope of - Held, trial court's appreciation of evidence is proper and does not warrant interference. (Paras 12, 13, 29, 30, 31)

Facts of the case:
The respondent-plaintiff filed a suit (O.S.No.06 of 2013) for recovery of Rs.9,50,000/- based on a promissory note dated 11.09.2012. The defendant denied the execution, alleging the document was forged, fabricated, and that the plaintiff lacked the financial capacity to lend the amount. The trial court decreed the suit, finding the execution proved by the testimony of the scribe and witnesses.

Findings of Court:
The trial court correctly held that the plaintiff fulfilled the initial burden of proof by presenting the testimony of the scribe (PW3) and witnesses (PW2, PW4, PW5). The defendant failed to provide sufficient evidence, such as forensic analysis, to substantiate the claim of forgery. Discrepancies in testimony were deemed minor and did not negate the fact of execution.

Issues: Whether the suit promissory note was validly executed and binding on the defendant, and whether the trial court's decree was perverse or suffered from illegality.

Ratio Decidendi: Once the plaintiff establishes the execution of a promissory note through credible witnesses (including the scribe and attestors), the burden shifts to the defendant to prove the defense of forgery. Without evidence, a mere denial is insufficient to reject the plaintiff's case.

Result: Appeal dismissed.

Table of Content
1. summary of suit proceedings and trial court decree. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11)
2. appellate contentions of the parties. (Para 13)
3. appraisal of evidence and testimony by the court. (Para 14 , 15 , 16)

JUDGMENT:

1. This Appeal is filed by the appellant-defendant under Section 96 of Civil Procedure Code, 1908 assailing the judgment and decree passed in O.S.No.06 of 2013, dated 03.10.2018 by the Senior Civil Judge, Huzurabad.

2. Respondent-plaintiff has filed suit for recovery of money for Rs.9,84,200/- in his favour against the appellant-defendant person and property and to award interest @ 18% per annum on Rs.9,84,200/- from the date of suit till the realization.

a) Prl. amount under pronote dated: 09.11.2012 Rs.9,50,000-00
b) Interest Rs. 1.50 ps per month per hundred i.e., 18% per annum from 09.11.2012 to 21.01.2013 i.e., 2 months 12 days. Rs.34,200-00
Rs.9,84,200-00

3. The parties will be hereinafter referred to as plaintiff and defendant

AVERMENTS IN PLAINT:

4. The defendant is having close acquaintance with the plaintiff and approached him on 09.11.2012, borrowed an amount of Rs.9,50,000/- for his business purpose. The plaintiff is doing Adthi business and the defendant is a resident of Jammikunta Village, runs Private Chits. The defendant having received the above said amount has executed promissory note as a collateral security in favour of the plaintiff on 09.11.2012 undertaking to repay the same with interest @ of Rs.1.50 ps. per hundred i.e., 18% per annum. Promissory note is scribed by A.Shankaraiah (PW.3), P.Kaladhar Rao (PW.4), K.Thirupathi (PW.2) and A.Bhadraiah (PW.5) stood as witnesses and the transaction took place in the house of the plaintiff. The defendant did not repay the amount in spite of the request made by the plaintiff. Plaintiff came to know that the defendant is making efforts to alienate the house property in order to evade the payment, in view of the urgency could not issue the legal notice and directly filed the suit. The defendant is liable to pay the suit amounts due under the pro-note as follows:

a) Prl. amount under pronote dated: 09.11.2012 Rs.9,50,000-00
b) Interest Rs. 1.50 ps per month per hundred i.e., 18% per annum from 09.11.2012 to 21.01.2013 i.e., 2 months 12 days. Rs.34,200-00
Rs.9,84,200-00

and prayed to decree the suit.

WRITTEN STATEMENT:

5. Defendant denied the execution of promissory note dated 09.11.2012 and further contended that the signatures on the promissory note and receipt are forged and fabricated, they do not belong to him and the defendant being literate if he has really taken the amount he would have scribe the promissory note and the receipt but the plaintiff in collusion with his friends has filled up the columns in the printed proforma of the promissory note and receipt. Plaintiff has no license to lend the money and has no financial capacity, prayed to dismiss the suit.

6. The trial Court framed the following Issues:

1. Whether the suit pro-note is truly valid and binding on the defendant?

2. Whether the plaintiff is entitled for suit amount as prayed for?

3. To what relief?

7. Plaintiff has amended the plaint and as per the orders in I.A.No.109 of 2015, dated 04.11.2015. As per the amended plaint the date of suit promissory note is 11.09.2012 and the claim is to pass a decree for Rs.10,11,750/- with interest @ 18% per annum on the above said amount and the calculation made by the plaintiff is as under:

a) Prl. amount under pronote dated: 11.09.2012 Rs.9,50,000-00
b) Interest @ Rs. 1.50 ps per month per hundred i.e., 18% per annum from 11.09.2012 to 21.01.2013 i.e., 4 months 10 days. Rs.61,750-00
Rs.10,11,750-00

8. Defendant has not filed additional written statement to the amended plaint.

9. The learned Trial Court has recasted the issues as under:

1. Whether the plaintiff is entitled for the suit claim from the defendant as prayed for?

2. To what relief?

10. Plaintiff is examined as PW.1 an

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