IN THE COURT OF THE PRINCIPAL DISTRICT JUDGE AT
VISAKHAPATNAM
PRESENT: K.SIVA PRASAD, B.SC.,B.L.,
DISTRICT JUDGE.
FRIDAY, THE 30TH DAY OF AUGUST, 2013
A.S.NO.233/2012
Between:
Vissarapu Appa Rao, S/o.Nookallamma, 51 yrs., Hindu, Cultivation, R/at Kothakota Village, Ravikamatham Mandal.
…Appellant/Defendant. And:
Ellapu Simhadri, S/o. Chinababulu, Aged 51 years, Hindu, Cultivation, R/o. Madugula Village and Mandal.
…Respondent/Plaintiff.
APPEAL PREFERRED BY THE APPELLANT/DEFENDANT AGAINST THE DECREE AND JUDGMENT, DATED 02.07.2012 PASSED BY THE
SENIOR CIVIL JUDGE, CHODAVARAM AND MADE IN
O.S.NO.63/2011
Between:
Illapu Simhadri. …Plaintiff. And:
Vissarapu Apparao. … Defendant.
This appeal has come up on 16.07.2013 before me for final hearing in the presence of Smt K.Prabhavathi & Sri BVB.Jagannadha Rao, Advocates for the Appellant/Defendant and notice to respondent served personally and called absent; upon hearing the arguments of Appellant, and the same having stood over for consideration till this day, this Court delivered the following:
J U D G M E N T
This appeal has been preferred by the appellant/defendant aggrieved of the Judgment and Decree in O.S.63/2011 on the file of the Senior Civil Judge, Chodavaram, dated 02.07.2012 directing the appellant to pay to the respondent/plaintiff, a sum of Rs.1,35,671/- with interest at 12% p.a. from the date of suit till the date of decree and at 6% p.a. from the date of decree till the date of realization on
principal sum of Rs.1,00,000/- under the suit promissory note.
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2.The brief facts of the case are that the Respondent filed the suit against the appellant with the following pleadings:
3.On 15.06.2008, the appellant borrowed from the respondent a sum of Rs.1,00,000/- at Kinthali Vallapuram Village in V.Madugula
Mandal to discharge sundry debts agreeing to repay the same with interest at 24% p.a. as and when demanded. Inspite of several oral demands personally and through elders to discharge the debt, the appellant postponed the repayment on one pretext or the other.
Hence, the suit.
4.The appellant filed written statement alleging that he has no necessity to borrow any amount much less Rs.1,00,000/-, that he has never executed any promissory note in favour of the respondent and that due to some family bickerings with regard to Rs.31,000/- between the appellant on one side and the respondent and his son Trinadh on the other, the suit promissory note is created by forging the signature and thumb impression of the appellant. Without prejudice to the plea of forgery, the appellant pleads that the respondent has no capacity to lend the suit amount and that it is materially altered. Hence the suit is liable to be dismissed.
5.On the basis of the pleadings, the following issues are framed:
1. Whether the defendant borrowed Rs.1,00,000/- from plaintiff and executed suit pronote in favour of plaintiff on 15.06.2008?
2. Whether the suit pronote is hit by material alteration?
3. Whether the plaintiff is entitled to get decree as prayed for?
4. To what relief?
6.The respondent/plaintiff examined himself as P.W.1 and exhibited the suit promissory note as Ex.A.1, apart from examining the scribe thereof as P.W.2. The appellant examined himself as D.W.1 but no documents are filed on his behalf. After considering the oral and documentary evidence coupled with various legal propositions 3 including those governing burden of proof under Sec.118A of
Negotiable Instruments Act, the Trial Court has disbelieved the theory of forgery and found the issues in favour of the respondent relying upon the evidence of P.W.1 corroborated by P.W.2. It is pointed out that the appellant ought to have preferred to obtain expert opinion as to the genuineness of his signature and thumb impression on Ex.A.1 and summon the sole attestor of Ex.A.1 to contradict the evidence of
P.W.2 with regard to execution of Ex.A.1 by the appellant. It is further observed that the plea of material alteration of Ex.A.1 is speculative as no such alterations are found in Ex.A.1 when observed with naked eye.
With these observations, the Trial Court granted decree in favour of the respondent.
7.Aggrieved of the Judgment, the appeal is filed contending that the trial court has failed to appreciate the evidence of P.Ws.1 and 2 with regard to the plea of forgery raised by the appellant and erroneously granted the decree. It is further contended that the trial court erred in drawing presumption under sec.118A of N.I.Act in favour of the respondent though the evidence failed to establish due execution of Ex.A.1 by the appellant. It is further contended that the reasoning of the trial court that P.W.2 might have got confused and given evidence contra to that of P.W.1 is erroneous and liable to be set aside, because he had previous experience of giving evidence in the court as admitted by him.
8.It is further contended that though P.W.2 stated that he did not know the appellant prior to Ex.A1, that the respondent introduced a person as the defendant (appellant) and that nobody brought the defendant to him are sufficient to disbelieve his evidence, the trial court erroneously relied upon his statements without calling for corroboration of the attestor of Ex.A.1.
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9.It is further contended that the trial court has not considered the inconsistent evidence of P.W.2 with regard to the place of execution and the village of the respondent/plaintiff and granted the decree erroneously. It is further contended that even according to the respondent, the suit transaction took place at Kinthali Vallapuram but according to P.W.2, the transaction took place at the medical shop of his cousin at Kinthali village. Though P.W.2 admitted that both the said villages are different, the trial court erroneously relied upon his evidence.
10.It is further contended that the trial court has failed to consider the fatal admissions made by PW.1 in the cross examination with regard to identity of the scribe and therefore, the impugned judgment is liable to be set aside. It is further contended that the trial court has not considered the material circumstances to show that the respondent has no capacity to lend Rs.1,00,000/- and granted the decree mechanically.
11.It is further contended that the trial court ought to have framed an issue with regard to rate of interest at which the suit amount has to be paid to the respondent in view of the appellant’s plea relating to Act 4 of 1938. The trial court ought to have scaled down the interest as per the provisions of the said Act.
12.It is contended that the judgments relied upon by the trial court are not applicable to the facts of the case nor favorable to the respondent. The trial court committed grave error in comparing the signature of the defendant by invoking Sec.73 of the Indian Evidence
Act though the evidence throws any amount of suspicion on the plea of execution of Ex.A.1 by the appellant. In fact, the respondent ought to have taken steps to send the document to Expert in view of Sec.102 of the Evidence Act.
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13.It is further contended that the trial court’s observations regarding the burden of proof is erroneous and the appellant has rebutted the presumption by relying upon the evidence of the respondent himself and that the principles of burden proof laid down by the full bench of A.P. High Court in G.Vasu Vs. Sayyed Yasin
Sifuddin Quadri 1987(1) ALT 1 are applicable to the case on hand and accordingly the suit is liable to be dismissed and the impugned judgment be set aside.
14.It is argued for the respondent that the grounds of appeal are speculative in nature, that the trial court has discussed all the pleas raised by the appellant and given cogent findings on the basis of established legal propositions and therefore, the appeal is liable to be dismissed.
15.After hearing arguments on both sides, the points for determination are
1. Whether the respondent has proved that the appellant has duly executed Ex.A.1 promissory note and if so, whether the appellant has rebutted the presumption under Sec.118A of N.I.Act that Ex.A.1 is supported by consideration?
2. Whether the impugned Judgment of the trial court is liable to be set aside?
3. To what relief?
16.Point No.1: It is admitted by the appellant/D.W.1 that the respondent is his co-brother. The respondent is resident of Madugula whereas the appellant is resident of Kothakota Village in Ravi
Kamatham Mandal of Visakhapatnam District. P.W.2 is resident of
K.J.Puram Village of Madugula Mandal. According to the respondent, the attestor of Ex.A.1 is one Somireddi Satyanarayana of Kothakota
Village. The respondent’s son Trinadh is the resident of Rajahmundry.
The respondent is admittedly illiterate and marksman. He admitted that there are disputes between his son Trinadh and the appellant. In what context they have disputes is however not revealed. The 6 appellant has his version that due to his dispute with the respondent’s son regarding Rs.31,000/-, Ex.A.1 is forged and fabricated.
17.Since the appellant has pleaded forgery, the burden of proof of execution undisputedly lies on the respondent. The statutory presumption under sec.118A of N.I.Act can be drawn in favour of the respondent only if the initial burden of proving execution is discharged.
The statutory presumption can be rebutted by leading oral, documentary or circumstantial evidence.
18.In this regard, the appellant has relied upon a Three Judge
Bench Judgment of A.P.High Court in G.Vasu Vs. Sayyed Yasin
Sifuddin Quadri (1987) AIR (A.P.) 139. The Honourable A.P. High
Court held as follows:
For the aforesaid reasons, we are of the views that where, in a suit on a promissory note, the case of the defendant as to the circumstances under which the promissory note was executed is not accepted, it is open to the defendant to prove that the case set up by the plaintiff on the basis of the recitals in the promissory note, or the case set up in suit notice or in the plaint is not true and rebut the presumption under S.118 by showing a preponderance of probabilities in his favour and against the plaintiff. He need not lead evidence on all conceivable modes of consideration for establishing that the promissory note is not supported by any consideration whatsoever. The words ‘until’ the contrary is proved in S.118 do not mean that the defendant must necessarily show that the document is not supported by any form of consideration but the defendant has the option to ask the Court to consider the non-existence of consideration so probable that a prudent man ought, under the circumstances of the case, to act upon the supposition that consideration did not exist. Though the evidential burden is initially placed on the defendant by virtue of S.118 it can be rebutted by the defendant by showing a preponderance of probabilities that such consideration as stated in the pronote, or in the suit notice or in the plaint does not exist and once the presumption is so rebutted, the said presumption ‘disappears’. For the purpose of rebutting the initial evidential burden, the defendant can rely on direct evidence or circumstantial evidence or on presumptions or law or fact.
19.The Hon’ble High Court also referred three principles which are relevant in the context of Sec.118 of the Act. The first one is connected with the practical difficulties that beset a defendant for proving negative namely that no other conceivable consideration 7 exists. In that regard, it is held that negative evidence is always in some sort of circumstantial or indirect and the difficulty of proving a negative lies in discovering a fact or series of facts inconsistent with the fact which we seek to disprove and that in such situations, a lesser amount of proof than is usually required may avail and in fact such evidence as renders the existence of the negative probable may shift on the other party. The second principle is relevant in the context of
Sec.106 of the Evidence Act. The third principle is that when both parties have lead evidence, the onus of proof loses all importance and becomes purely academic.
20.Keeping in view of these legal principles it has to be decided whether the respondent has discharged the burden of proving execution of Ex.A.1 and if so on such discharge whether the presumption that arises under Sec.118 of N.I.Act has been duly rebutted by the appellant.
21.The trial court has relied upon a legal proposition (V.Surya Rao
Vs. G.Gopala Krishna 1999(4) ALT 480) that the conduct of the parties prior to the suit and their silence at relevant point of time goes a long way in considering the plea of forgery. The trial court also relied upon a legal proposition that not sending the disputed document to Expert for comparison is of no consequence in a case of forgery since sec.73 of the Indian Evidence Act empowers the court to compare the signatures to decide their genuineness or otherwise. It also relied upon the proposition that non-examination of attestor is not fatal to the case of the plaintiff in as much as promissory note is not a compulsorily attestable document. It also relied upon the proposition that when the plaintiff fails to examine either the attestor or the scribe, the defendant could have examined them to rebut the presumption under Sc.118 NI Act.
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22.Having examined these legal propositions, the trial court at the outset did not consider the impact or the effect of not issuing a legal notice by the respondent before filing the suit. Evidently, the suit has been filed more than 1 ½ months before the expiry of the limitation period. The respondent simply pleaded that inspite of several demands made personally and through elders, the appellant has postponed on one pretext or the other. He has not named even one the so called elder in his evidence nor explained the reasons why he has not chosen to issue legal notice to know the mind of the appellant behind the indifferent postponement of discharge. In the light of the appellant’s plea that he had no necessity to borrow nor occasion to execute Ex.A.1 in favour or the respondent, the casual approach of the respondent in filing the suit without issuing notice though there was no urgency of limitation reveals that the respondent did not want to give opportunity to the appellant to explain his stand before filing of the suit. No doubt, suit notice is not mandatory, the conduct of issuing or not issuing the same by any plaintiff in the cases of this nature gives prima facie scope to doubt the case of plaintiff who admits in evidence that his son got enmity with defendant as in the present case.
23.In this back ground, it is the evidence of P.W.1 that the appellant borrowed from him Rs.1,00,000/- and executed Ex.A.1 at
Kinthali Vallapuram village in Madugula Mandal. The respondent belongs to Madugula whereas the appellant belongs to Kothakota of
Ravikamatham Mandal P.W.2/scribe belongs to KJ Puram village whereas the attestor belongs to Kothakota village. We do not find any explanation in the pleadings or evidence why the venue of execution of Ex.A.1 has been fixed as the said village to which neither of the parties nor the scribe/attestor belong. Moreover, the actual place of execution in Kinthali Vallapuram is not revealed by P.W.1. Only in the cross examination of P.W.2, it is elicited that the place of execution is 9 a medical store of his cousin in Kinthali Village. P.W.2 himself admits that Kinthali and Kinthali Vallapuram are two different villages.
Moreover, he has not named the medical store or his cousin nor explained why his so called cousin was not chosen as an attestor of
Ex.A.1. This omission is fatal because P.W.1 admitted that he had no transactions with either the scribe or attestor Satyanarayana and that they do not belong to Kinthali village. He further admitted that he cannot explain the circumstances leading to his acquaintance with the scribe and the attestor. He only speculated that he was acquainted with the scribe and attestor in Vijayaramarajupeta but failed to give the particulars of his acquaintance. P.W.2 admitted that he does not know the particulars of the attestor and that he is a stranger to him.
In this context, from the admission of P.W.2 that his cousin did not sign as attestor leaves scope for inference that his cousin was present but he was avoided from the transaction. This circumstance gathers clouds of doubt in the bonafide intention of the respondent to obtain
Ex.A.1 in a natural way and normal course. The avoidance of P.W.2’s cousin from the transaction has defeated the very purpose of fixing the venue as Kinthali or Kinthali Vallapuram Village. In any event, no effort has been made that P.W.2 has any cousin and if so, he has any medical store in that village by the time of Ex.A.1. This circumstance is fatal to the case of the respondent.
24.As already noted, the respondent had no transactions with
P.W.2 and he is unable to explain in what context he knew P.W.2 and was acquainted to him. This admission leaves the prima facie conclusion that P.W.2 is stranger to him. To select a stranger as scribe or a promissory note, one is supposed to have a reasonable cause. Otherwise the evidence of the scribe regarding execution suffers from credit worthiness. P.W.2 simply says that he knows the respondent as villager of Madugula and that he has not scribed any 10 other document of the respondent. However, he has not explained how he was acquainted with the respondent or Madugula Village.
25.The place of execution according to P.W.1 is Kinthali
Vallapuram. P.W.2 contradicted this version by stating the name of the village as Kinthali and also by clarifying that both are different villages.
In this regard, P.W.1 stated that one Karnam of Kinthali Vallapuram scribed Ex.A.1. However, P.W.2 admitted that he never worked as
Karanam of Kinthali or Kinthali Vallapuram. Though P.W.1 has given the material particulars of Ex.A.1 in the chief examination, he admitted in the cross examination that he cannot say the date of Ex.A.1 because of illiteracy. Significantly, he has not corroborated the place of execution as the medical shop of P.W.2’s cousin. These circumstances throw doubt whether Ex.A.1 was scribed by PW.2 in the presence of the respondent.
26.With regard to execution P.W.1 stated that the appellant received Rs.1,00,000/- and executed Ex.A.1 scribed by P.W.2 in the presence of attestor Satyanarayana. P.W.1 has not revealed the time of execution on 15.06.2008. P.W.2 in the cross examination, stated that it was executed between Noon and 2 P.M. at Kinthali village and that money was given all in 100 rupee denominations.
According to him, both the respondent and the appellant together came to him and the respondent introduced the appellant as Visarapu
Apparao and he signed and also affixed thumb impression in Ex.A.1.
He admitted that the thumb impression is not affixed on the revenue stamp. He does not remember whether two stamps have been affixed.
No doubt he has denied the suggestion that the appellant has not signed nor affixed thumb impression in Ex.A.1 but we do not find explanation for the material discrepancies regarding execution of
Ex.A.1 which have been discussed in the earlier part of the Judgment.
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27.Another material defence of the appellant is that the respondent has no capacity to lend Rs.1,00,000/-. In this regard, P.W.1 admitted that he owns half acre agriculture is main source of his income, and since this source of income is not sufficient to maintain family, he is doing agricultural coolie works which is hardly sufficient to maintain his family. Admittedly he is not doing any business. The trial court at para 14 of the judgment, considered P.W.1’s admission that even with the agriculture and coolie works, he is just maintaining his family and held that only on that point, the financial capacity of P.W.1 cannot be doubted because one may have savings while maintaining his family with difficulty.
28.Though this reason is appealing, the trial court has not considered the failure of P.W.1 to explain his source of consideration under Ex.A.1. Only on the basis of a suggestion given to D.W.1 that he borrowed Rs.1,00,000/- to perform marriage of his daughter, the trial court presumed bonafides of P.W.1’s conduct inspite of his admission that the suggested purpose of consideration is inconsistent with the one mentioned in Ex.A.1. It is stated in Ex.A.1 that the appellant borrowed for his family expenses and discharging debts. There is no effort made by P.W.1 to explain what was the family necessity and how the so called debts were incurred and whether those circumstances have any connection with the marriage, if any of the appellant’s daughter. D.W.1 categorically denied his receiving of any consideration for any purpose muchless for his daughter’s marriage.
Moreover, the date or period of the so called marriage is not suggested to D.W.1. Therefore, it can be justifiably concluded that the purpose of borrowing mentioned in Ex.A.1 is speculative and doubtful. But the trial court has condoned this discrepancy by simply observing that ‘Borrowing of amount for some purpose and utilizing that amount for another purpose is immaterial’. If this discrepancy is immaterial, the 12 legal proposition that conduct of the parties prior to and after the transaction is relevant becomes wasteful. In the cases of this nature, the genuineness of the transactions can be examined not only on oral evidence but also on circumstantial evidence on the theory of preponderance of the probability. 29. In the nature of the defence of the appellant, the discrepancy assumes importance to create a doubt if the contents of Ex.A.1 regarding consideration are mentioned by obtaining instructions from the parties or not. P.W.2 has not thrown any light with regard to the purpose of borrowing. He baldly stated that cash of Rs.1,00,000/- was given and the appellant signed and affixed thumb impression in Ex.A.1. It is significant to note that in the chief examination he simply stated that the amount was borrowed for family expenses. However, he has not corroborated that the amount was borrowed for discharging the debts or to perform any marriage.
Even after facing a suggestion that the appellant has not received
Rs.1,00,000/- nor any consideration passed under Ex.A.1 nor was it executed in his presence, PW.2 has not explained what he meant of family expenses. He simply denied the suggestion without further adding anything about the purpose of consideration. The trial court has not considered this intransparent conduct of P.W.2.
30.Evidently, the material discrepancies in the evidence of both
PWs.1 and 2, are condoned by the trial court by simply observing that they were confused while giving evidence. When PW.1 admitted that he does not know the village of the scribe and described the scribe as
Karanam of Kinthali vallapuram, the trial court has not considered the effect of these admissions on the execution of Ex.A.1. The trial court simply observed that since P.W.1 denied in the cross examination a suggestion that he colluded with the attestor and the scribe and brought into existence Ex.A.1 by forging the signature and thumb impression. When P.W.2 fumbled on the place of execution, the trial 13 court simply observed, ‘Evidence as a whole is to be considered to come to a certain conclusion. On one sentence or the other in the deposition of party of witness final conclusion cannot be made. In general, parties and witnesses may get some confusion in witness box.
Therefore, I am of the opinion that P.W.2 might have confused in saying that suit transaction took place at Kinthali village instead of
Kinthali vallapuram village. That aspect also will not throw a doubt on the transaction covered by Ex.A.1.’
31.PW.2 deposed that Plaintiff is resident of Kinthali vallapuram village, but he actually belongs to V.Madugula village. In this regard, the trial court observed ‘PW.2 is resident of K.J.Puram village.
Therefore, he (P.W.2) might have again confused in saying the village of the plaintiff because P.W.2 is not a resident of village of Plaintiff.
But the gist of evidence of P.W.2 is that the transaction under Ex.A.1 took place and that he scribed Ex.A.1’. The trial court has however, not considered the evidence of P.W.1 leading to conclusion that P.W.2 is stranger to him and absence of explanation why a stranger was chosen to act as a scribe of promissory note. In that context, the so called confusions of P.W.2 throw doubt if he knows anything about the contents of Ex.A.1 and it was executed in his presence as claimed.
32.With regard to Sec.73 of the Indian Evidence Act, the trial court has taken the view that on comparison of the signatures of the appellant in Ex.A.1 vis-a-vis the signatures in vakalat, suit summons and deposition, he has not found any dissimilarities in the signatures and therefore, the theory of forgery becomes improbable. Even if the opinion of the trial court in this regard is accepted as reliable for argument sake, it is not understood how the respondent is discharged from the burden of execution of the promissory note by mere showing that the signature in Ex.A.1 is that of the appellant. The trial court has not opined anything about the genuineness of the thumb impression in 14
Ex.A.1 but simply observed that the appellant has pleaded forgery without inspecting Ex.A.1 before filing the written statement as such the denial of execution is not bonafide. According to the trial court, this conduct of the appellant probablises the conclusion that the written statement has been filed only to drag the mater for some time having executed Ex.A.1 and receiving of Rs.1,00,000/- there under from the respondent. This far reaching conclusion suffers from illegality because there is no expert opinion on the thumb impression appearing in Ex.A.1. The trial court has not stepped into shoes of the expert and compared the thumb impression with any admitted one in as much as no admitted thumb impression is available on record.
Therefore, the trial court ought to have called upon the respondent to explain why the appellant’s thumb impression was also obtained and how the burden of proof of the genuineness of thumb impression is discharged.
33. Instead, the trial court has given superficial findings by blaming the appellant that he has not set up a case that he has no financial capacity to send Ex.A.1 to Hand Writing Expert or Finger Print
Expert for opinion. The trial court ought to have held that the respondent failed to seek expert opinion of the Expert particularly
Finger Print Expert since burden of proof of execution lies on him.
Having considered the various suspicious circumstances found in the evidence of P.Ws.1 and 2, the trial court’s conclusion that the respondent has duly discharged his burden of proving execution is liable to be set aside.
34. In view of these circumstances, it can be stated that the respondent has failed to lead satisfactory and creditworthy evidence to prove that the appellant has executed Ex.A1 in the presence of PW2 and the so called attester. The appellant on the other hand elicited material circumstances to throw doubt if Ex.A1 has been executed for 15 consideration. In spite of the specific defense of forgery and existence of various discrepancies in his evidence regarding execution of Ex.A1, the respondent has not sought for the opinion of expert particularly hand writing expert. As if the burden of proof of execution is on the appellant, the respondent has relied upon Pw2 in spite of material discrepancies in his evidence. Therefore I have no hesitation to hold that the findings of the trial Court in favour of the respondent suffer from illegality as such liable to be set aside. The point is accordingly decided.
35.Point No.2:
In view of the findings in the Point No.1, the point goes in favour of the appellant and against the respondent.
36.Point No.3:
In the result the appeal is allowed but without costs and the impugned Judgment in O.S.63/2011 dated 02-07-2012 on the file of
Senior Civil Judge, Chodavaram is set aside and the suit O.S.63/2011
on the file of Senior Civil Judge, Chodavaram is dismissed without costs.
Typed to my dictation, corrected and pronounced by me in Open Court on 30th Day of August, 2013.
DISTRICT JUDGE,
VISAKHAPATNAM.
APPENDIX OF EVIDENCE
No additional evidence is adduced on either side.
PDJ::VSP