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IN THE COURT OF THE I ADDITIONAL SENIOR CIVIL JUDGE: KAKINADA.
Present:-Smt K.Aruna Kumari, III Addl. Senior Civil Judge. FAC I Addl. Senior Civil Judge.
Tuesday, the 21st day of August, 2018
ORIGINAL SUIT No.209/2016
Between:-
Balasadi Manga…Plaintif
And
1. Pinapothu Arjuna Rao
2. Pinapothu Sarojini ...Defendants
This suit is coming on 20.8.2018 before me for final hearing in the presence of Sri K.S.R.Acharyulu, Advocates for plaintiff and of Sri B.Gokula Krishna, Advocate for defendants 1 and 2 and the matter having stood over till this day for consideration, this Court delivered the following:-
J U D G M E N T
This suit is filed by the plaintiff against the defendants 1 and 2 for recovery of Rs.7,53,333/- with subsequent interest from the date of suit till the date of realization and to award costs and other reliefs.
2.The brief averments of the plaint are that the plaintiff is the sister of 1st defendant and 2nd defendant is the wife of 1st defendant. On 10.3.2014 the defendants 1 and 2 jointly borrowed an amount of Rs.5,00,000/- from the plaintiff for their business purpose and executed demand promissory note in favour of plaintiff agreeing to repay the said amount with interest at 24% p.a., to the plaintiff or order. Inspite of repeated demands made by the plaintiff, the defendants did not pay any amount and postponed the same on one pretext or other. Thereupon the plaintiff got issued a legal notice on 21.3.2016 to the defendants and the defendants received the same, but did not pay any amount or did not give any reply. Hence the present suit is filed for recovery of the suit debt.
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3.The 1st defendant filed written statement which was adopted by the 2nd defendant, denying the averments in the plaint except admitting the relationship. Further contended that husband of the plaintiff worked as employee in 1st defendant business. The plaintiff and her husband used to borrow amounts from 1st defendant. In the year 2012 the 1st defendant only borrowed an amount of Rs.1,50,000/- from Swamy, who closely associated with plaintiff’s family and at the time of borrowing amount from Swamy, she obtained the signatures of 1st defendant on blank promissory note. In the year 2014, 1st defendant towards discharge of amount to Swamy, he gave
Rs.1,50,000/- and interest to plaintiff and requested her to discharge the debt. As the plaintiff is sister to 1st defendant and also due to his business pressure, he did not ask her to return blank promissory note. The 1st defendant sold his property in December, 2015 for Rs.1,29,00,000/-. The plaintiff and her husband requested 1stdefendant to lend them
Rs.15,00,000/- and accordingly the plaintiff and her husband jointly borrowed
Rs.15,00,000/- from 1st defendant on 10.1.2016 for discharging their sundry debts and family expenses. In May, 2016 the 1st defendant demanded the plaintiff and her husband to discharge debt, for which they requested 1st defendant some more time to discharge the debt. Several times, the 1st defendant demanded the plaintiff and her husband to discharge the debt, for which they both picked up quarrels and gave harsh reply. The 1st defendant placed the matter before elders and the elders admonished plaintiff. The plaintiff and her husband with an evil idea got fabricated the blank promissory note containing the signature of 1st defendant which was obtained from Swamy while discharging the loan amount borrowed from the said Swamy. The plaintiff has no capacity to lend such a huge amount and there is no consideration between plaintiff and defendants. The present promissory note is fabricated and it is not legally enforceable against 1st defendant as well as 2nd defendant. The 2nd defendant is house wife and 3 there is no need her to borrow such a huge amount. There is no need to borrow amount from his worker. There are no merits in the suit and the suit is filed only to harass the defendant. The Court has no jurisdiction to try this suit and the suit is not maintainable under law. Hence the defendants prayed to dismiss the suit with costs.
4.Basing on the above pleadings, the following issues are framed:-
1)Whether the suit promissory note is true, valid and binding on the defendants or not?
2)Whether any consideration is passed under suit promissory note or not?
3) Whether the plaintif is entitled for suit amount or not?
4) To what relief?
5.During the course of trial, P.Ws.1 and 2 are examined and Exs.A.1 to A.3 is marked on behalf of the plaintiff. On the other hand, D.W.1 was examined and no documents are marked on behalf of defendants.
6.Heard the counsel for the plaintiff and the defendants and they argued reiterating their pleadings and the evidence on record.
7. ISSUE NOS.1 to 3:
“Whether the suit promissory note is true, valid and binding on the defendants or not?
&
Whether any consideration is passed
under suit promissory note or not?
&
Whether the plaintif is entitled for
suit amount or not?”
It is the contention of the plaintiff that the defendants 1 and 2 jointly borrowed an amount of Rs.5,00,000/- from her on 10.3.2014 for their 4 business purpose and executed demand promissory note in her favour agreeing to repay the same with interest at 24% p.a., to her or her order on demand. Later on repeated demands made by the plaintiff, the defendants did not repay the said amount, as such he got issued legal notice on 21.3.2016 to the defendants.
8.To prove execution of suit promissory note dt:10.3.2014 by the defendants 1 and 2, the plaintiff examined herself as P.W.1 and she stated in her chief affidavit by reiterating the averments in the plaint. The plaintiff also marked the suit promissory note dt:10.3.2014 executed by the defendants in favour of the plaintiff as in Ex.A.1, office copy of legal notice got issued by the plaintiff dt:21.3.2016 as in Ex.A.2 and postal acknowledgements of the defendants 1 and 2 as in Exs.A.3 and A.4 respectively.
9.Apart from her oral testimony, the plaintiff also examined her husband, who is the 1st attestor of Ex.A.1 promissory note by name Balasadi
Amrutha Rao as P.W.2. P.W.2 stated in his chief affidavit that the plaintiff is his wife, 1st defendant is his brother-in-law and 2nd defendant is wife of 1st defendant. On 10.3.2014 defendants jointly borrowed Rs.5,00,000/- from his wife for their business purpose and executed demand promissory note in favour of his wife/plaintiff. At the time of transaction, himself, his wife/P.W.1, defendants, scribe and other person by name K.Chiranjeevi were present.
Defendants brought scribe, K.Chiranjeevi/2nd attestor and necessary papers.
Both defendants signed on the demand promissory note/Ex.A.1 after receiving Rs.5,00,000/- from his house in their presence. Himself and
K.Chiranjeevi observed while defendants put their signatures on demand promissory note/Ex.A.1 and they observed while himself and K.Chiranjeevi attesting Ex.A.1 demand promissory note and the entire transaction took place in their presence.
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10.On the other hand, the 1st defendant himself was examined as
D.W.1. He stated in his chief affidavit by reiterating the averments of the written statement. He stated that in the year 2012 the 1st defendant only borrowed an amount of Rs.1,50,000/- from Swamy, who closely associated with plaintiff’s family and at the time of borrowing amount from Swamy, she obtained the signatures of 1st defendant on blank promissory note. In the year 2014, 1st defendant towards discharge of amount to Swamy, he gave
Rs.1,50,000/- and interest to plaintiff and requested her to discharge the debt. As the plaintiff is sister to 1st defendant and also due to his business pressure, he did not ask her to return blank promissory note. The 1st defendant sold his property in December, 2015 for Rs.1,29,00,000/-. The plaintiff and her husband requested 1stdefendant to lend them
Rs.15,00,000/- and accordingly the plaintiff and her husband jointly borrowed
Rs.15,00,000/- from 1st defendant on 10.1.2016 for discharging their sundry debts and family expenses. In May, 2016 the 1st defendant demanded the plaintiff and her husband to discharge debt, for which they requested 1st defendant some more time to discharge the debt. Several times, the 1st defendant demanded the plaintiff and her husband to discharge the debt, for which they both picked up quarrels and gave harsh reply. The 1st defendant placed the matter before elders and the elders admonished plaintiff. The plaintiff and her husband with an evil idea got fabricated the blank promissory note containing the signature of 1st defendant which was obtained from Swamy while discharging the loan amount borrowed from the said Swamy.
11.From the evidence adduced by both the parties as discussed above, it discloses that as this is the money suit filed by the plaintiff for recovery of loan amount with interest under the suit promissory note from the defendants 1 and 2, the initial burden is on the plaintiff to prove that the defendants jointly borrowed the loan amount from the plaintiff on executing 6 suit promissory note. The plaintiff has proved the said fact by examining himself as P.W.1 and with the support of oral evidence of P.W.2 who is one of the attestors of Ex.A.1 suit promissory note and with the documentary proof of Ex.A.1. So, the plaintiff has discharged the initial burden by proving that the suit promissory note is executed by defendants 1 and 2 and borrowed loan amount of Rs.5,00,000/- from the plaintiff on 10.3.2014.
12.Whereas the defendants on the other side denied the case of the plaintiff and execution of Ex.A.1 by them after borrowing the loan amount of
Rs.5,00,000/- from the plaintiff. The contention of the defendants is also that the plaintiff is the sister of 1st defendant. The plaintiff and her husband worked as employees in their business and used to borrow amounts from him. The plaintiff had no capacity to lend such a huge amount.
13.The allegations of the defendants is also that in the year 2012,
D.W.1 borrowed an amount of Rs.1,50,000/- from Swamy, who is closely associated with plaintiff’s family and at that time, the said Swamy obtained blank promissory note from him and obtained his signature on blank promissory note. In the year 2014 towards discharge of the amount to
Swamy, 1st defendant gave Rs.1,50,000/- and interest to plaintiff, who is his sister and requested to discharge the debt. Later he did not ask the plaintiff to return back promissory note as plaintiff is his sister and also due to his business pressure. In the month of December, 2015, he sold his property for
Rs.1,29,00,000/-. The plaintiff and her husband requested him to lend them
Rs.15,00,000/- to discharge their sundry debts and family expenses, then he lent Rs.15,00,000/- to them and in March, 2016 he demanded plaintiff and her husband to discharge the debt which was borrowed by them. But they requested some time and later picked up quarrels and gave false reply. Then he placed the matter before elders and elders admonished the plaintiff and her husband. Then the plaintiff and her husband fabricated the empty 7 promissory note containing his signatures which was obtained by Swamy at the time of borrowing Rs.1,50,000/- and filed the suit falsely against him and his wife. There is no consideration passed to them under the suit promissory note and they have no necessity to borrow such huge amount from the plaintiff and her husband, who are his workers.
14.To prove the said facts as narrated by the defendants, the defendants have not examined the said Swamy from whom 1st defendant borrowed the loan amount of Rs.1,50,000/- and discharged the same through the plaintiff. The defendants also not given any notice to said Swamy after receipt of legal notice under Ex.A.2 from the plaintiff stating that he borrowed amount of Rs.1,50,000/- from Swamy in the year 2012 and discharged the said amount through plaintiff. The defendants also not examined any of the elders who admonished the plaintiff and her husband when they quarreled with the 1st defendant for not discharging the loan amount of Rs.15,00,000/- taken from the 1st defendant by them. The 1st defendant has filed suit against the plaintiff and her husband for recovery of loan amount of Rs.15,00,000/- from them. Here, the defendants also taken another plea in the evidence that the signatures on Ex.A.1 are not of their signatures, whereas in the written statement, the version of defendants is the empty promissory note containing with the signature of 1st defendant which was obtained by Swamy was fabricated by the plaintiff. So, two different versions were taken by the defendants. One is that the blank promissory note containing his signature is fabricated by the plaintiff and another version is the signatures on suit promissory note under Ex.A.1 were not belongs to them. So, two contradictory versions were taken by the defendants. The plea which was newly taken in the evidence of D.W.1 that the signatures on Ex.A.1 suit promissory note are not belong to them is new development of their defence only taken in their evidence without pleadings had no validity to consider it. Even then to prove that aspect, the 8 defendants have not taken any steps to send their disputed signatures to the
Expert. As such the defendants miserably failed to prove that from Swamy 1st defendant has taken loan of Rs.1,50,000/- in the year 2012 and discharged the same in the year 2014 through plaintiff and the plaintiff without returning blank promissory note of 1st defendant got fabricated it as a suit promissory note and falsely filed this suit. P.Ws.1 and 2 only admitted that Swamy is their neighbour and denied remaining defence taken by defendants about their transactions with Swamy.
15.Now to say that the defendants have no necessity to borrow
Rs.5,00,000/- from the plaintiff, the defendants have not furnished any document or evidence about their financial status. The defendants also not adduced any evidence to show that the plaintiff has no capacity to lend
Rs.5,00,000/- to the defendants. Moreover, it was elicited in the cross- examination of P.W.1 that P.W.1 lent an amount of Rs.5,00,000/- as she owned an extent of Ac.1.00 of land and getting Rs.30,000/- per year from that land. She owned a white ration card. She earned Rs.5,00,000/- by pledging his gold ornaments and also his agricultural earnings. P.W.1 also deposed that she can produce the document on the date of transaction she has money of Rs.5,00,000/-. But P.W.1 has not filed any of such documents.
Whereas the defendants failed to prove that the plaintiff had no land and she has not given Rs.5,00,000/- by pledging her gold ornaments and from agricultural earnings thereby not shown any probabilities to disbelieve the version of the plaintiff that she had no capacity to lend loan amount. It is true P.Ws.1 and 2 admitted in their evidence that the husband of plaintiff/P.W.2 previously worked under 1st defendant and 1st defendant used to give Rs.260/- as daily wages. At present P.W.2 is working in Government
General Hospital, Kakinada, on outsourcing and getting Rs.5,000/- per month towards salary. Previously for how many years back P.W.2 worked at 1st defendant and when 1st defendant gave Rs.260/- as daily wages to him is not 9 specified by the defendants. At present, the husband of plaintiff getting salary of Rs.5,000/- per month due to his working in Government General
Hospital, Kakinada and the plaintiff is having lands and getting Rs.30,000/- per annum on her lands and plaintiff has categorically stated that by pledging gold ornaments, she earned Rs.5,00,000/- and also by agricultural earnings, she lent the loan amount of Rs.5,00,000/- to the defendants. There is no hard and fast rule that the defendants cannot borrow loan amount from the plaintiff because the husband of plaintiff worked under them. As the plaintiff and defendants are close relatives even though plaintiff’s husband worked under D.1, with their close intimacy and relationship they can also borrow the amounts from one another as they are relatives. So, it proves that the plaintiff has financial capacity to lend Rs.5,00,000/- to the defendants which was disproved by the defendants from their evidence.
16.In the written arguments, the defendants have raised another allegation that Ex.A.1 is not valid under law as per Section 12 of Indian
Stamp Act which deals with cancellation of adhesive stamps. It has explained as follows:
1) (a) Whoever affixes any adhesive stamp to any instrument chargeable with duty which has been executed by any person shall, when affixing such stamp, cancel the same so that it cannot be used again; and
(b) Whoever executes any instrument on any paper bearing an adhesive stamp shall, at the time of execution, unless such stamp has been already cancelled in manner aforesaid, cancel the same so that it cannot be used again.
2) Any instrument bearing an adhesive stamp which has not been cancelled so that it cannot be used again, shall, so far as such stamp is concerned, be deemed to be unstamped.
3) The person required by sub-section (1) to cancel an adhesive stamp may cancel it by writing on or across the stamp his name or initials or the name or initials of his firm with the true date of his so writing, or in any other effectual manner.
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As per the above Section, Ex.A.1 is not signed by 2nd defendant across it. Hence Ex.A.1 is not valid under law. The said allegation was raised by the defendants only in the arguments, but not in the pleadings and in the evidence, had no legal validity to consider it. Inspite of that Section 12 of
Indian Stamp Act deals with cancellation of adhesive stamps in the circumstances which are mentioned in Section 12 (1)(a)(b), (2) and (3) that if a person write on the stamp or across the stamp his name or initial on any instrument, such stamp cannot be used again unless such stamp has been already cancelled. Here on Ex.A.1, 1st defendant has signed on the revenue stamp whereas 2nd defendant signed under the stamp. The said provision of
Law which was explained in Section 12 of the Indian Stamp Act is not applicable to the circumstances of this case because the stamp which was affixed on the suit promissory note was signed by 1st defendant that it was signed by 2nd defendant beneath it, the intention of the 2nd defendant was signing beneath, it clearly shows that it was executed by defendants 1 and 2 after taking consideration from the plaintiff. Moreover the defendants have admitted in their written statement and pleadings that the signatures of the defendants on blank promissory note which were signed by them was given by them to one Swamy at the time of taking loan of Rs.1,50,000/- though it was discharged by them according to their version, it was admitted by the defendants that it was signed by them. Now they cannot take the different plea that the signatures were forged on the suit promissory note which is contrary to their own pleadings.
17.The learned counsel for the defendants relied on the decision in “Putta Lakshmi Narayana Reddy vs. Putta Mysura Reddy”, reported in 1996 (2) A.L.D. 1242 the said ruling is not applicable to the facts and circumstances of this case because in the above citation the transaction of suit promissory note was executed in favour of the plaintiff by his younger 11 brother in the partition of their properties and plaintiff unable to prove the partition and the value of the difference in the partition how it was adjusted, the Hon’ble High Court dismissed the suit.
Here, the facts and circumstances of this case are totally different from the facts and circumstances of the citation referred above because the plaintiff has categorically proved both from oral and documentary evidence that the defendants have borrowed loan amount of
Rs.5,00,000/- from them and executed Ex.A.1 suit promissory note in their favour, but not executed promissory note with regard to the value of difference in the partition between them and to adjust those difference.
18.No doubt, there are some inconsistencies in the evidence of
P.Ws.1 and 2 with regard to denominations and the number of bundles of cash received by the defendants from the plaintiff at the time of suit transaction. But those inconsistencies are minor variations not effecting the case of the plaintiff about the transaction of Ex.A.1 by the defendants.
19. Therefore, the plaintiff has proved both from oral and documentary evidence that the defendants borrowed an amount of Rs.5,00,000/- from the plaintiff on 10.3.2014 and executed promissory note in the presence of attestors and scribe and failed to discharge the loan amount even after issuing the legal notice which was evident from Exs.A.2 to A.4 and not discharged the said debt even as on today after filing this suit. Hence, the plaintiff has proved the suit promissory note is true, valid and binding on the defendants and the same is supported by consideration. Hence the plaintiff is entitled for recovery of the suit amount from the defendants.
20.On the other side, the defendants failed to rebut the presumption under Sec.118 of Negotiable Instruments Act that the suit promissory note is 12 not supported by consideration and also failed to prove that the suit promissory note is fabricated and forged one. So, the plaintiff has clinchingly established that the suit transaction under Ex.A.1 suit promissory note is true, valid and binding on the defendants and the plaintiff is entitled for suit amount as prayed for. Accordingly, issue Nos.1 to 3 are answered in favour of the plaintiff.
21. ISSUE No.4:- "To what relief?"
In view of the findings on issue Nos.1 to 3, this suit is liable to be decreed as prayed for.
22. In the result, the suit is decreed in favour of plaintiff for an amount of Rs.7,53,333/- with costs and subsequent interest at 12% p.a., from the date of filing of the suit till the date of decree and thereafter at 6% p.a., till the date of realization on the principal sum of Rs.5,00,000/-.
Dictated to the Grade II Stenographer, transcribed by her,
corrected and pronounced by me, in the Open Court, on this the 21st day of August, 2018.
Sd/- K.Aruna Kumari,
III ADDL. SENIOR CIVIL JUDGE,
FAC I ADDL. SENIOR CIVIL JUDGE,
KAKINADA.
APPENDIX OF EVIDENCE
WITNESSES EXAMINED
For Plaintif:-
P.W.1 : Balasadi Manga (plaintiff) P.W.2 : Balasadi Amrutha Rao (1st attestor of Ex.A.1 promissory note & husband of P.W.1)
For Defendants :-
D.W.1 : Pinapothu Arjuna Rao (1st defendant) 13
DOCUMENTS MARKED
For Plaintif :-
Ex.A.1 /10.03.2014:Suit promissory note executed by the defendants in favour of the plaintiff for Rs.5,00,000/-.
Ex.A.2 /21.03.2016:Office copy of legal notice got issued by the plaintiff to the defendants.
Ex.A.3 / --- :Postal acknowledgements of the 1st defendant.
Ex.A.4 / --- :Postal acknowledgements of the 2nd defendant.
For Defendants :- NIL
Sd/- K.Aruna Kumari,
III A.S.C.J.,
FAC I A.S.C.J.,
Kakinada.