High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE M. VENUGOPAL
Thangarasu
Versus
Arumugam
Second Appeal No.908 of 1999
Decided On : 24-02-2012
Pronote - Negotiable Instruments - Section 118 of the Negotiable Instruments Act - Summary of Acts and Sections: Section 118 of the Negotiable Instruments Act - The court discussed the presumption as to the passing of consideration under Section 118 of the Negotiable Instruments Act and the burden of proof on the defendant to disprove the passing of consideration. The court also referred to Section 115 of the Indian Evidence Act and cited relevant case laws to interpret and apply the legal provisions. The court emphasized the need for the execution of the pronote to be admitted or proved by the other side for the presumption to arise.
Fact of the Case:
The Appellant/Plaintiff filed a Second Appeal challenging the dismissal of the suit for recovery of a loan amount. The Respondent/Defendant denied executing the pronote and borrowing the amount. The trial court and the First Appellate Court did not believe the Appellant/Plaintiff's version and dismissed the suit.
Finding of the Court:
The court found that the Appellant/Plaintiff failed to establish the execution of the pronote by the Respondent/Defendant. The court emphasized the discrepancies in the evidence and the failure to prove the execution of the pronote, leading to the dismissal of the appeal.
Issues: The issues included the execution of the pronote, passing of consideration, and the framing of points for determination by the lower courts.
Ratio Decidendi: The court held that the burden of proof lies on the party alleging the execution of the pronote, and the presumption under Section 118 of the Negotiable Instruments Act arises only when the execution is admitted or proved. The court also emphasized the mandatory nature of framing points for determination by the appellate court.
Final Decision: The Second Appeal was dismissed, confirming the judgments of the trial court and the First Appellate Court, and the parties were left to bear their own costs.
1. The Appellant/Plaintiff has projected the present Second Appeal adverting upon the Judgment and Decree dated 18.09.1998 in A.S.No.32 of 1998 passed by the Learned Principal District Judge, Cuddalore.
2. The First Appellate court, viz. the Learned Principal District Judge, Cuddalore, while passing the Judgment in A.S.No.32 of 1998 on 18.09.1998 has opined that "there is inconsistency between the evidences of P.Ws.1 to 4 and that they have not discharged their initial burden of proving execution of Suit Pronote, etc. and in regard to the evidence of D.Ws.2 and 3, it is observed that they only speak of not indicating no means of Plaintiff, etc. and consequently dismissed the Appeal with costs.
3. Before the trial Court, in the main suit, 1 to 5 issues have been framed for determination. On behalf of the Appellant/Plaintiff, witnesses P.Ws.1 to 4 have been examined and Exs.A1 to A16 have been marked. On the side of the Respondent/Defendant, witnesses D.Ws.1 to 3 have been examined and Exs.B1 to B8 have been marked.
4. The trial Court, on appreciation and analysis of the oral and documentary evidence available on record, has come to a definite conclusion that the Appellant/Plaintiff is not entitled to recover the suit amount and also it opined that the plea of the Respondent/Defendant that the Suit Pronote is a fabricated one is a true one and resultantly dismissed the suit with costs.
5. At the time of admission of the Second Appeal, this Court has formulated the following Substantial Questions of Law for determination:
(i) Whether in law the Courts below are not wrong in overlooking that under Section 118 of the Negotiable Instruments Act, when execution of a Pronote is admitted, there is a presumption as to the passing of consideration?
(ii) Whether in law the Lower Appellate Court is right in framing an erroneous point for consideration and not framing proper points as contemplated under Order 41 Rule 31 C.P.C. and as held in 1997 (1) Law Weekly 704 (DB)?
The Contentions, Discussions and Findings on Substantial Question of Law No.1:
6. The Learned Counsel for the Appellant/Plaintiff submits that the First Appellate Court has committed an error to appreciate the fact that the Appellant/Plaintiff owned more than ten acres and that has been admitted by the Village Administrative Officer and further, the Appellant/Plaintiff has requested means to pay the amount and file documents to prove his means.
7. It is the contention of the Learned Counsel for the Appellant/Plaintiff that the trial Court as well as the First Appellate Court have overlooked the admission of execution of the Pronote and in fact the burden shifts on the Respondent/Defendant to disprove passing of consideration. The stand of the Appellant/Plaintiff is that the minor discrepancies in the oral evidence of the Appellant/Plaintiff has weighed with the consideration of the trial Court as well as the First Appellate Court.
8. The Learned Counsel for the Appellant/Plaintiff urges before this Court that the First Appellate Court has failed to appreciate the Appellant/Plaintiff's case in real perspective, which has resulted in a cursory disposal of the case.
9. Per contra, it is the contention of the Learned Counsel for the Respondent/Defendant that both the Courts below have concurrently not believed the version projected by the Appellant/Plaintiff and in fact, the oral and documentary evidence available on record have been looked into properly and upon scrutinizing the materials on record, both the Courts have come to a correct conclusion that the Appellant/Plaintiff has not established his case that the Respondent/Defendant has executed Ex.A1-Suit Pronote, dated 05.12.1993 in his favour and moreover, the First Appellate Court in paragraph 7 of its Judgment in Appeal has opined that there is inconsistency in regard to the evidence of P.Ws.1 to 4 and that the initial onus of proof of execution of the Pronote has not been discharged by the Appellant
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