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IN THE COURT OF THE PRINCIPAL SENIOR CIVIL JUDGE: ANANTHAPURAMU
PRESENT:- Smt. G. Malathi,
Principal Senior Civil Judge, Ananthapuramu
Wednesday, the 20th day of September, 2017
ORIGINAL SUIT NO. 97/2013
Between:
Katam Veera Prasad ..Plaintiff.
And
1.Devarapalli Sreekantha
2.Devarapalli Sreehari .. Defendants.
This suit coming on 31.08.2017 for final hearing before me in the presence of Sri K.Lakshmanachar, Advocate for the plaintiff and of Sri R.Harinath Reddy, Advocate for the D.2, Defendant No.1 set exparte and upon hearing on both sides and upon perusal of the available material on record this court delivered the following:-
J U D G M E N T
This is a suit filed by the plaintiff against the defendants 1 2 for recovery of a sum of Rs.3,55,500/- basing on pronote.
2.In brief, the averments in the plaint are that, the defendants herein are brothers & they are jointly approached the plaintiff on 17.11.2009 and borrowed a sum of Rs.2,00,000/- from the plaintiff for their family necessities, and for business purpose agreeing to repay the same with interest at 24 % p.a., and jointly executed the promissory note in favour of the plaintiff on the same day. As per his contention, on demands made by the plaintiff, the 1st defendant paid a sum of Rs.500/- to the plaintiff on 17.10.2012 and the same was endorsed on the backside of the pronote. As per the contention of the plaintiff, inspite of several demands made by him, the defendants did not paid any amount towards principal or interest, hence he filed the present suit.
3.Defendant No.1 is exparte. Defendant No.2 filed his written statement, as per the contention of D.2, he along with 1st defendant borrowed an amount of Rs.2,00,000/- from the plaintiff on 17.11.2009 for their family necessities is not correct. According to their contention, they did 2 not executed any document in favour of the plaintiff, as they never saw his face and it is a created one. According to the contention of the D.2, the suit pronote is a forged and fabricated document and got up for the purpose of the case. According to his contention, the pronote on which the plaintiff is relying, it clearly show that D.1 alone made payment and he made endorsement on the back side of the promissory note and according to the contention of the defendant, the said endorsement is got into existence by the plaintiff in order to save limitation and according to his contention, he never made any part payment and there is no endorsement to that effect with regard to the part payment of the said amount by D.2. As per the contention of the D.2, the plaintiff has no capacity to lend Rs.2,00,000/- to the defendant or to the 3rd parties, hence he prayed for dismissal of the suit.
4. Basing on the above pleadings, the following issues are framed:
1.Whether the suit pronote dated 17.11.2009 is true, valid and binding?
2. Whether the plaintiff is entitled for the suit claim ?
3. To what relief?
5. As per the orders in I.A.377/2015 dated 23.11.2015, the Addl.
Issue is framed.
Addl. Issue: 1) Whether the suit is barred by limitation?
5. In support of the plaintiff, PW.1 to PW.3 are examined ( PW.2 is eschewed) and Ex.A.1 & A.2 are marked. On behalf of the defendant, DW.1 is examined, and Ex.D.1 is marked.
6. The learned plaintiff counsel has argued that here in the instant case, it is their contention, D.1 and D.2 both have jointly borrowed the amount from the plaintiff and the same was deposed by PW.1, who filed his chief affidavit. According to him on 17.11.2009, defendants borrowed the same amount, as per his contention the said D.1 though he was exparte, D.2 who alone is contesting, he did not denied with regard to the execution of the suit transaction. Further, according to them, the said D.2, he promised to pay 3 the debt by way of cheque, as there is a promise to discharge the amount borrowed by the said D.2, issuance of cheque with regard to the amount due on a pronote, hence according to him, though it is the contention of D.2 that
D.1 alone has endorsed on17.10.2012 with regard to the part payment, but as D.2 issued a cheque to the plaintiff in discharge of suit pronote amount, hence according to him both are liable to pay the suit amount, hence he prayed the court to decree the suit against the D.1 and D.2.
7.The learned defendant counsel has argued that here in the instant case, the suit is barred by limitation against D.2. In support of his contention, he has filed his written arguments. As per his version though it is the evidence of PW.1, that defendants have jointly borrowed a sum of
Rs.2,00,000/- cash from him on 17.11.2009 under Ex.A.1, as the endorsement was made by D.1 alone on the back side of the pronote under
Ex.A.2. According to them, D.1 alone is liable to pay the suit amount and the suit is barred by limitation against D.2, as D.2 executed the promissory note on 17.11.2009, but the PW.1 filed the suit on 22.02.2013, as D.2 never endorsed on Ex.A.2, hence the suit is barred by limitation against D.2.
Further, PW.1 admitted in his cross-examination that, he has not shown the entire amount of Rs.2,00,000/- in his income tax statement, though he is an income tax assesee.
Further, according to the contention of the learned D.2 counsel, PW.1 stated in his evidence that, he paid pronote amount to D.1 only and repayment was not made by D.1, D.2 did not signed on Ex.A.2 endorsement and the recitals- in Ex.A.2 are supporting their contention that D.2 did not made any endorsement with regard to the part payment, so according to him, as per the decision reported in Madras High court in a case between
K.Chockalingam Vs. K.R.,Ramaswamy Iyer and Jenbagam decided on
8 th April, 2004, wherein it was held that; “ That the debt was not acknowledged by byboth the defendants, that when the same was acknowledged by one of the defendants, the acknowledgement was not on behalf of other defendants also, on the basis of 4 authorization. In this view, he came to the conclusion that the suit in its entirety, is barred by limitation. Thus, setting aside the decree and judgment of the trial Court, the appeal is allowed, ordering dismissal of the suit in entirety, which is under challenge in this revision”.
By relying on the said decision, he argued that as the debt borrowed by the defendants was not acknowledged by the defendant, when the same was acknowledged by one of the defendant, the acknowledgement was not on behalf of other defendant on the basis of authorization, hence according to him, the suit against D.2 is filed beyond the period of limitation and no decree can be passed against the 2nd defendant, hence he prayed the court to dismiss the suit against the D.2.
8. Issue Nos.1 & 2 and Addl. Issue No.1 :
In support of the case of the plaintiff, he himself has filed his chief affidavit, as per his evidence, it is disclosing that on 17.11.2009, the defendants herein approached him and they jointly borrowed the amount of
Rs.2,00,000/- from him by executing the suit promissory note in his favour on 17.11.209. In support of his contention, he relied on Ex.A.1 document, which is pronote alleged to have executed by D.1 and D.2 and the contents in the said document are supporting the plea of the plaintiff, that D.1 and D.2 have jointly executed the suit promissory note. According to his contention on his demands the first defendant paid a sum of Rs.500/- on 17.10.2012 and he endorsed on the back side of the pronote and the recitals in Ex.A.2 endorsement are supporting his contention. As per his version inspite of the demands made by him, the defendants failed to pay the suit amount, hence he filed the present suit against the D.1 and D.2 and it is the contention of the D.2 that, the suit is barred by limitation against him, and D.1 alone is liable to pay the suit amount, as the endorsement on which the plaintiff is relying i.e., Ex.A.2, it was being endorsed by D.1 alone, but not D.2. Even though, the learned plaintiff's counsel has argued that, D.1 and D.2 are jointly liable to pay the suit amount, as D.2 issued cheque with regard to the discharge of the suit amount, as there is no denial with regard to the 5 borrowing of said amount by D.1 and D.2, hence according to him, both are liable for the same.
9. Here, as per the evidence of Pw.1 supported by the evidence of PW.3, it is disclosing that, the said PW.3 was present at the time of execution of the pronote by the defendants and he himself has scribed the suit promissory note on 17.11.2009, so here in the instant case D.1 and D.2 they are not denying with regard to the execution of the suit pronote on 17.11.2009.
Though, it is the contention of the D.2 that, as the amount was being received by D.1 alone and the said pronote is containing his signature, but he did not received any amount, so he is not liable to pay the suit amount, as the suit is filed by the plaintiff soon after expiry of 3 years period of limitation, as the said pronote was executed on 17.11.2009. In support of the contention of the defendant, he filed his chief affidavit, according to him, he never signed in the suit pronote alone i.e., Ex.A.1, but on perusal of the
Ex.A.1 document, on which the plaintiff is relying it is containing the signature of D.1 and D.2. In such case if it is the version of D.2 that, he did not signed in the said promissory note, in such case he would have taken some steps to prove his contention, but he failed to prove the same. Further, it is his contention that, the suit is barred by limitation against him and in his cross-examination, the said DW.1 has admitted that the signature in Ex.A.1 is his signature along with his brother defendant No.1, which goes to show that in Ex.A.1 pronote, the defendant is admitting his signature, in such case it can be said that he has executed the suit pronote in favour of the plaintiff.
Though he volunteered that, as his brother D.1 requested him to stood as surety to the amount borrowed by him, at his request he signed in the said pronote, from that it can be said that though he is denying with regard to the execution of the said pronote jointly by him, & his brother/ defendant No.1, but as per his admission in his cross-examination, it is disclosing that he executed the said pronote along with his brother D.1 jointly, which in turn supporting the contention of the plaintiff that, D.1 and D.2 have jointly executed the pronote and they received the said amount.
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10.Further, DW.1 admitted in his evidence that that one cheque bounce case is pending in AJFCM Court, Ananthparuam vide CC.No.338/2013,
Though, he denied with regard to the issuance of cheque to the plaintiff for
Rs. 4,50,000/- on 31.01.2013 drawn on Karur Vysya Bank, but as per his admission in his evidence about the cheque bounce case, which in turn supporting the contention of the plaintiff that, having received the said amount, defendant No.2 issued cheque in his favour for discharge of suit pronote amount. Though, the learned plaintiff's counsel has argued that, as
D.2 executed the suit pronote in favour of the plaintiff along with D.1 and he towards the discharge of the suit amount, he issued the said cheque, though the said cheque was bounced, but according to him, as he has issued post dated cheque, from the date of issuance of cheque, the limitation starts, according to the contention of the learned plaintiff's counsel, but the learned defendants counsel has argued that the limitation starts from the date of encashment of the said cheque. Here in the instant case, the cheque was dishonoured, in such case the suit filed by the plaintiff against D.2 is beyond the period of limitation. So, the suit is filed against the D.2 after expiry of 3 years period of limitation, so D.2 is not liable to pay the suit amount as per his contention.
11. Hear on hearing the both counsels arguments with regard to the issuance of post dated cheque by D.2 to the plaintiff towards the discharge of debt due under Ex.A.1 by the D.2, but according to me, the same should be pleaded by the plaintiff, in the suit filed by him. But on perusal of the plaint averments and as per the recitals in the plaint, the same is not disclosing, so according to me, a plea without pleading cannot be considered. Though, the
PW.1 deposed in his cross-examination the D.2 was personally present on the date of endorsement by D.1 under Ex.A.2, but the said PW.1 himself admitted in his cross-examination that D.2 did not endorsed on the back side of the Ex.A.1 and when he asked him to repay the same, to that effect D.2 gave post dated cheque to him, but the said PW.1 categorically admitted in his evidence that the same is not endorsed by the D.2 stating that he is 7 giving post dated cheque to him towards the payment due by him under
Ex.A.1 amount. If at all the said PW.2 endorsed on the back side of Ex.A.1 stating that he issued post dated cheque to him towards the payment due by him to PW.1, in such case the evidence of PW.1 can be believed upon to show that the said D.2 issued post dated cheque to him towards the discharge of the said amount and as argued by the learned plaintiff's counsel, in such case it can be said that the limitation starts from the date of issuance of cheque. Though, the learned defendant counsel has argued that when once the cheque is issued, if it is en-cahsed then only the limitation starts, if the cheque is bounded the limitation will not start. Even though, both counsels have argued on this aspect, but according to me, as the plaintiff failed to prove by placing material before the court with regard to the issuance of post dated cheque by the D.2 to him, towards the discharge of suit amount, in such case even though the said defendant admitted in his cross-examination with regarde to the filing of cheque bounce case and though the plaintiff has relied on Ex.B.1 document, but he failed to prove that the said case was filed by the plaintiff against D.2 with regard to the present suit transaction. In such case the evidence of Pw.1 cannot be believed upon with regard to the issuance of post dated cheque by D.2 to him towards the discharge of suit amount covered under Ex.A.1 and as the said plaintiff failed to prove in this regard. On the other hand as per Sec. 18 and 19 of
Limitation Act, it is clear that, a fresh period of limitation will starts from the date of acknowledgement and effect of payment of amount of debt will starts from the said date by a person who made the said acknowledgement.
Here in the instant case, as per the recitals in Ex.A.2, it is disclosing that, D.1 alone has made the part payment under Ex.A.2 and the said part payment is not with regard to the acknowledgement of debt by the D.2, in such case
D.2 will not be liable to pay the amount due to the plaintiff under Ex.A.1, though it is the contention of the plaintiff that D.1 and D.2 executed the suit promissory note on the alleged date, but a fresh period of limitation starts from the part payment. As per the recitals in Ex.A.2 the fresh period of limitation starts against only D.1, as he acknowledged the debt as per 8 Ex.A.2, as far as D.2 is concerned, as there is no acknowledgement, so the suit against him is filed beyond the period of limitation, hence he is not liable to pay the suit amount.
12. Though, the learned plaintiff's counsel has argued that, as they proved with regard to the execution of the suit document by D.1 and D.2 jointly, both are liable to pay the said amount, as they proved the execution of the same, supported by Ex.A.1 document. But, here according to me, here in the instant case, the plaintiff have filed the suit basing on the amount borrowed by the defendants on pronote. Here, it is the contention of the learned defendants counsel, the debt was not acknowledged by the both defendants and the same was acknowledged by only D.1 and the acknowledgment was not on behalf of other defendant on the basis of authorization, hence according to him, as D.2 did not acknowledged with regard to the debt, as the defendant No.2 did not signed on the endorsement, D.1 alone signed on the back side of the endorsement, hence
D.1 alone is liable to pay the said debt.
13. Here on hearing the learned defendants counsel, and on perusal of the decision relied on by the learned D.2 counsel before discussing the said aspects at first instance if we read the Sec. 18 of Limitation Act, deals with the effect of acknowledgement in writing. As per the said section, it is clear that, where before the expiration of period prescribed for a suit or application in respect of any property or right an acknowledgement of liability in respect of such property or right has been made in writing singed by the party against whom such property or right is claimed or by any person through whom he derives his title or liability a fresh period of limitation shall be computed from the time, when acknowledgement was so signed. Further, as per Sec. 19 of Limitation Act, it says that, when & what is the effect of payment on account of debt, or interest of legacy where payment on account of debt or interest on a legacy, is made before the expiration of prescribed period by the person, liable to pay the debt or legacy or by his agent duly 9 authorized on his behalf, a fresh period shall be computed from the time when the same was made. So, as per the said sections, it is clear that the period of limitation will counts from the date of acknowledgement . Here in the instant case, it is the version of the learned D.2 counsel on Ex.A.2 acknowledgement wherein the plaintiff is relying, it is acknowledged only by
D.1, acknowledging the debt and with regard to part payment, as it is containing his signature and he is not authorized agent of D.2 and according to his contention though, they borrowed Rs.2,00,000/- from the plaintiff jointly, as per the contention of the plaintiff, but according to his contention, the part payment was made only for D.1, hence D.1 alone is liable to pay the said amount and on hearing the learned D.2 counsel and on perusal of the said sections, it is clear that whenever there is a acknowledgement in writing before the expiration of period prescribed for a suit, the fresh period of limitation shall be computed from the time when the acknowledgement was so signed.
14. But, here in the instant case, it is the contention of the defendants that Ex.A.2 endorsement, which was made by 1st defendant alone. On perusal of the said document, it is disclosing that the said document is containing the signature of D.1 alone, which in turn supporting the contention of D.2 that, the first defendant alone made endorsement. Here in the instant case, as per the said endorsement, it is disclosing that the 1st defendant has acknowledged the debt, so from the date of acknowledgement, the period of limitation starts. As per the recitals in Ex.A.2, he made endorsement on 17.11.2012, from then on words the period of limitation starts against D.1.
As far as D.2 is concerned, it is his contention, he did not made any endorsement on 17.10.2012 and on verification of the Ex.A.2, it is disclosing that, D.1 alone has made part payment acknowledging the debt and even though it is the contention of the plaintiff's that D.1 and D.2 jointly borrowed the amount, but as rightly pointed out by the learned counsel of D.2, D.2 did not acknowledged about the debt, as he has not made any endorsement on the backside of the pronote with regard to the payment of some of the 10 amount, which goes to show that, D.1 alone has acknowledged the debt, as he signed on the back side of the pronote evidencing that he endorsed the same. So from the date of endorsement, the period of limitation will starts, so as per said endorsement from 17.10.2012 the D.1 is liable to pay the suit amount.
15. Admittedly, as this is a suit filed basing on the pronote, in such case the payment with regard to the amount is divisible, as the promissory note, on which the plaintiff is relying will not come within the meaning of indivisible debt, so there can be a decree against the person, who acknowledged the debt and the claim against the person, who failed to acknowledge the same is not maintainable. So, as per the endorsement, on which the plaintiff is relying i.e., Ex.A.2, it is disclosing that, the 1st defendant has signed on the acknowledgement with regard to the part payment amount, evidencing the payment in his indivisible capacity and not in the capacity, as agent or on behalf of the D.2. So, the suit is maintainable against D.1, as he endorsed with regard to the part payment on 17.10.2012 and the suit is filed within the period of limitation against the D.1 and as D.2 did not endorsed on the back side of the pronote with regard to the part payment acknowledging the debt, in such case he is not liable to pay the suit amount, as the claim against the
D.2 is barred by limitation.
16. Even though, it is the contention of the plaintiff that, D.1 and D.2 have jointly borrowed the amount from him by executing the suit promissory note, but in his cross-examination the said DW.1 admitted that D.2 did not signed in Ex.A.2 endorsement, though he asked him to repay the pronote amount, which in turn supporting the contention of the D.2 that, he did not made any endorsement under Ex.A.2, in such case the suit is barred by limitation against D.2. Though, he admitted that prior to the suit transaction, there are many transactions in between him and D.1 and D.2, as they are related.
Though, he admitted that, he filed the cheque bounce case against the D.2 basing on the suit pronote transaction, though he admitted that he presented 11 the cheque for collection, the same was returned, but he failed to mentioned in his plaint with regard to the issuance of cheque by D.2 towards the suit transaction and bouncing of the same and he also admitted in his evidence that, he failed to mention the same in his plaint, in such case the plaintiff failed to prove that D.2 issued the cheque, which was bounced , towards payment of money due by him under the Ex.A.1 pronote transaction. Though, the plaintiff proved that D.1 and D.2 jointly borrowed the amount from him, but as there is no endorsement with regard to the part payment by D.2, as the pronote is of 17.11.2009, as it is the contention of the plaintiff that, D.1 and D.2 jointly borrowed the suit amount and they made on the part payment endorsement on the back side of the Ex.A.2, as per the said endorsement, D.1 alone made the part payment, in such case the limitation starts from the date of endorsement i.e., 17.10.2012 against D.1 alone and as far as D.2 concerned, the pronote is barred by limitation, so D.2 is not liable to pay the suit amount, accordingly the issue No.1 and 2 and and Addl.
Issue No.1 are answered.
17. Issue No.3:
In view of my discussion in issue Nos.1 & 2, and Addl. Issue No.1, the plaintiff is entitled for a decree against the D.1 alone, as far as D.2 concerned, the suit is dismissed.
18. In the result, the suit is decreed with costs in favour of the plaintiff and against the defendant No.1 alone for a sum of Rs.3,55,500/- with future interest at the rate of 12% p.a. on the principal amount of Rs.2,00,000/- from the date of the suit till the date of decree and thereafter at the rate of 6% p.a. from the date of decree till the date of realization. As far as D.2 concerned, the suit is dismissed.
Dictated to the Stenographer, transcribed by him, corrected and
pronounced by me in open court on this 20th day of September, 2017.
Principal Senior Civil Judge,
Ananthapuramu.
12 Appendix of evidence
Witnesses examined for
Plaintiff: Defendant:
PW.1 : K.Veera Prasad DW.1.D.Sreekanth PW.2 : H.Lakshminarayana (eschewed) PW.3 : K.Harikrishore
Exhibits marked for plaintiff
Ex.A.1 : Original suit pronote dated 17.1.2009 executed by the defendants for Rs. 2,00,000/- Ex.A.2 : Endorsement on the back side of suit pronote for Rs.500/- dated 17.10.2012
Exhibits marked for defendant
Ex.B.1: C.C of deposition in CC. 338/2012 on the file of AJFCM Court, Ananthapuram.
P.S.C.J.
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