IN THE COURT OF PRL. JUNIOR CIVIL JUDGE::RAMACHANDRAPURAM
Present: Sri M.Siva Kiran, PRL.JUNIOR CIVIL JUDGE
Friday, this day the 19th day of June, 2020
O.S.No.19 OF 2019
Between: Chintapalli Srinivasu … Plaintiff
And
Reddi Sai Babu … Defendant
The suit is coming before me on 06-02-2020 for final hearing in the presence of Sri G.Srinivas, Advocate for the Plaintiff and Sri TSSSNCh.Kumar, Advocate for the defendant and having been stood over for consideration till this day, this court delivered the following:
J U D G M E N T
This is a suit filed by the plaintiff against the defendant for recovery of an amount of Rs.4,96,600/- on the strength of a promissory note dt.01-05-2016 alleged to have been executed by the defendant in favour of the plaintiff.
2. The case of the plaintiff in brief, is that, the defendant borrowed an amount of Rs.3,00,000/- from him on 01-05-2016 for the purpose of family expenses and sundry debts and agreed to repay the same with interest @ 24% p.a., and after receipt of consideration, the defendant executed a demand promissory note on the even date in favour of the plaintiff at Ramachandrapuram. Inspite of repeated oral demands, the defendant failed to repay the suit amount, as such the plaintiff got issued a legal notice to the defendant on 21-05-2018 and the defendant received the same as per settled postal ack., given by Postal Dept., dt.18-06-2018 and the defendant did not pay any amount nor gave any reply. Since the defendant is not an agriculturist, he is not entitled to the benefits of Debt
Relief Laws. Hence, the suit.
3. After receipt of summons from this court, the defendant made his appearance through his counsel and filed written statement denying all 2 the main and material allegations of the plaint. It is submitted by the defendant that the present suit was filed against him to get wrongful gain and suit pronote is forged, fabricated and created for the purpose of filing this case. It is further averred that the alleged signature and thumb mark on the suit pronote do not belongs to him and the attestors and scribe of the suit pronote are henchmen of the plaintiff. It is further averred that he never executed the suit pronote in favour of the plaintiff in the presence of attestors and scribe and they are strangers to him and there is no necessity to borrow amounts from the plaintiff.
ii) It is further averred that on enquiry, he came to know that the plaintiff is a planted person by one Gubbala Adinarayana of
Ramachandrapuram, as himself and Gubbala Adinarayana having some financial disputes in connection with the Vocational College runned by him. Himself, Gubbala Adinarayana and one Chintapalli Satyanarayana together invested amounts for purpose of running of Vocational College under name and style of Costal Vocation college which was obtained by way of lease from one Sayyad Reaz in the year 2013 and Gubbala
Adinarayana used to manage and participate actively in all concerned activities of the college including accounts and finance management and cash transaction with others till February, 2018. Thereafter there arose some financial disputes with Gubbala Adinarayana and he left the college without settling accounts to him and Chintapalli Satyanarayana. He and
Chintapalli Satyanarayana settled the financial deficits in their college on behalf of the said Adinarayana also and they both frequently approaching the Adinarayana and demanding him to hand over the books, for which he bore grudge and got foisted the present suit through the plaintiff to shout up the mouth of the defendant. No suit pronote transaction took place in between the plaintiff and defendant and he came to know that the plaintiff has no financial capacity to lend amounts to others.
3 iii) It is further averred that after receipt of legal notice, he approached concerned counsel through his counsel and enquired about the notice and came to know that Adinarayana is behind back this suit and he tried to settle the matter, but in vain. There is no creditor and debtor relationship in between the plaintiff and himself and there is no cause of action and alleged cause of action is false. No pronote transaction took place at Ramachandrapuram, as he is residing at
Kakinada, hence, the plaintiff has no right to file the suit before this
Court. Upon the above grounds, he prays to dismiss the suit.
4. Basing on the rival contentions of both parties, this court framed the following issues for trial.
(1) Whether the suit pronote dt.01-05-2016 is true, valid, supported by consideration of Rs.3,00,000/- and binding on the defendant?
(2) Whether the signature and thumb mark on the suit pronote do not belongs to the defendant and was it a forged and fabricated document?
(3) Whether the plaintiff is entitled for suit claim as prayed for?
(4) To what relief?
5. During trial, the plaintiff examined himself as P.W.1 and got exhibited Exs.A.1 to A.3 and also examined the 1st attestor and scribe of
Ex.A1 as Pws.2 and 3.
ii) On the other hand, the defendant himself examined as DW.1 and no documents were marked on his behalf.
iii) Ex.A.1 is the pronote, dt.01-05-2016, Ex.A.2 is the office copy of registered legal notice dt.21-05-2018 and Ex.A.3 is the postal acknowledgment of the defendant as per complaint settled reply issued by Post Master, Ramachandrapuram, dt.18-06-2018.
6. Heard. Perused the material available on record and the written arguments filed by both sides.
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7. ISSUEs No.1 and 2:
Since Issue No.2 is interrelated and interdependent on Issue No.1, both the issues are takenup together for consideration inorder to avoid repetition of evidence.
7.1) It is the case of plaintiff that the defendant borrowed an amount of Rs.3,00,000/- on 01-05-2016 from him and after receipt of consideration, he executed Ex.A.1 promissory note in his favour in the presence of attesters and scribe and later the defendant failed to repay that amount, as such he got issued Ex.A.2 legal notice to the defendant, but the defendant did not pay any amount and thereby he filed the present suit.
Per contra, it is the specific case of defendant that Ex.A1 is created one and alleged signature and thumb mark do not belongs to him and the
Ex.A1 suit pronote is a forged and fabricated document in view of disputes between himself and one Gubbala Adinarayana. Thus, the defendant has taken both the pleas of ‘forgery’ and ‘fabrication’ which are inconsistent with each other. 'Forgery' means 'denial of signature apart from its execution', whereas 'fabrication' means 'admission of signature and denial of execution'. However, it is well settled law that the defendant can take any number of pleas though they are inconsistent with each other.
7.2) Inview of plea raised by the defendant i.e., forgery and fabrication, the initial burden rests on the plaintiff to prove the execution of promissory note in his favour. Once the execution of Ex.A.1 promissory note is proved by the plaintiff, the presumption under Sec.118(a) of
Negotiable Instruments Act comes into operation infavour of the plaintiff with regard to passing of consideration. But, the defendant may also dislodge the statutory presumption and to dislodge the legal presumption, the defendant need not always produce direct evidence by entering into 5 the witness box and he can show by the circumstances or the preponderance of probabilities which are suffice for dislodging the legal presumption. Once the defendant is able to show that preponderance of probabilities to dislodge the legal presumption, the burden again shifts on the plaintiff to establish the passing of consideration.
7.3) To substantiate his case, the plaintiff filed his chief examination affidavit by reiterating the same averments of the plaint.
The suit pronote is exhibited as Ex.A1. P.W.1 deposed about borrowing amount of Rs.3,00,000/- from him on 01-05-2016 and execution of Ex.A1 in his favour in the presence of both the attestors and scribe. It is the specific case of the defendant that the plaintiff is not known to him and he was planted by G.Adinarayana in view of disputes in between him and
Adinarayana.
7.4) When Pw.1 was questioned about the name of the person against whom he had filed the suit, Pw.1 deposed that he filed the suit against one 'Reddy Srinivas'. However, the name of the defendant is 'Reddy Sai Babu'. P.W.1 failed to state exactly the name of the defendant. In view of the above evidence, the learned counsel for defendant had argued that the plaintiff even do not know the name of the person to whom he lend amount, which clearly shows that P.W.1 is not the person who had lend amount and the suit pronote is a fabricated and forged one and thereby prays to dismiss the suit.
7.5) Per contra, the learned counsel for the plaintiff argued that except, the above discrepancy about the name of the defendant, there is no other contra evidence elicited to disprove the case of plaintiff. Pw.1 might have felt tension in the witness box and stated the name as
Srinivas and there is no further cross examination on the aspect whether the defendant is also called as Srinivas or not. In the absence of any further cross-examination nor denying that the defendant was never 6 called as Srinivas, the same cannot be a ground to disbelieve the case of plaintiff and thereby the contention of learned counsel for the defendant will not gain any advantage and prayed this court to decree the suit.
7.6) Perusal of deposition of P.W.1 shows that further cross- examination of P.W.1 was done by referring the name of defendant as
Srinivas. When Pw.1 was questioned with regard to his acquaintance with the defendant, he deposed that he got acquaintance with Srinivas, as he used to running a school and asked to join his children in that school and he run the school at Kakinada and he know the defendant since 2015 and he got good acquaintance with him. P.W.1 further deposed that the person to whom he lent amount resided at I.Polavaram village and he is a married person and his father name is Somanna. The testimony of P.W.1 with regard to the father's name of defendant, defendant's place of residence and running a vocational college at Kakinada was found correct.
P.W.1 deposed that he do not know other particulars of the defendant. As seen from the deposition of Pw.1, there is no further cross examination done to Pw.1, whether the defendant Reddy Sai Babu is also called as
Srinivas or not. Except the discrepancy with regard to the name of
D.W.1, no contra material was elicited in cross-examination to disprove the case of plaintiff. Further, no material was elicited in cross-examination of P.w.1 to prove any nexus in between the plaintiff and Gubbala
Adinarayana. Moreover, it is an admitted fact that prior to filing of the suit, Pw.1 got issued legal notice to the defendant vide Ex.A2 office copy of legal notice and though no postal receipt was filed, but as per Ex.A3, settled reply issued by the Post Master, Ramachandrapuram that the said legal notice was served on the defendant. Even in the cross examination of D.W.1, he admitted that he received legal notice and he did not give any reply. The receipt of legal notice was also admitted by the defendant in his written statement. If the version of the defendant is true and 7 correct that the plaintiff is a planted person by one Adinarayana, what made the defendant in not issuing any reply notice to Ex.A-2 legal notice was not known. Defendant ought to have given suitable reply to the
Ex.A-2 notice by denying the transaction with the plaintiff, as claimed in
Ex.A-2 legal notice. However, the defendant remained silent. Further, a meticulous scanning of deposition of Pw.1 do not show that any question was posed to Pw.1 about any nexus in between the plaintiff and
Adinarayana. No cross-examination was done to P.W1 whether he knows
Gubbala Adinarayana or not. No single question was posed to Pw.1 about said Adinarayana. Except the discrepancy with regard to the name of the defendant as deposed by P.W.1 as “Srinivas” though the name of D.W.1 is “Sai Babu”, nothing was elicited in the cross examination of Pw.1 to discard his evidence. Even on the date of cross examination of Pw.1, he was questioned whether the defendant was present in the court hall, for which, Pw.1 replied that the defendant was not present in the court hall.
P.W.1 was questioned about identity particulars of the defendant, he stated that the defendant is tall person, thin and blackish in colour. The said identity particulars were not denied by the defendant counsel. If the defendant is of view that he is unknown to P.W.1 and he cannot identify him, the best method of identification is to be done in the open court along with other persons, which is not done in this case.
7.7) Pw.2 who is 1st attestor of Ex.A-1 and Pw.3 who is scribe of
Ex.A1 has corroborated the testimony of Pw.1 in all material aspects.
Pw.2 and 3 clearly stated about borrowing of amount by the defendant from the plaintiff and execution of pronote in favour of P.W.1 in their presence. As per the testimony of P.W.2, he knows both the plaintiff and defendant since long time and he acted as attestor at the request of the defendant. Pw.2 deposed that the transaction has taken place in between 11-00 am and 12-00 noon. Pw.2 deposed that he do not know one 8
Gubbala Adinarayana. When P.W.2 was asked whether the defendant was present in the court hall at the time of his cross examination, he stated that defendant attended the court today and he identified the defendant.
Pw.2 denied the suggestion that the Gubbala Adinarayana has got filed the case through the plaintiff and he deposing his evidence after going through the Xerox copy of the pronote with regard to its date and other particulars and he do not know the defendant at all and he had identified him as Adinarayana is sitting by the side of the defendant.
7.8) It is not known whether the person who is sitting beside the defendant is Adinarayana as no request was made by the defendant's counsel to know about the name of the person sitting beside the said
Adinarayana. P.W.2 stated that he do not know the person who was sitting by the side of the defendant in the court hall. Nothing was elicited in the cross-examination of P.W.2 to doubt his veracity.
7.9) Pw.3 in her cross examination stated that that defendant requested her to prepare the pronote. She stated that the defendant used to come to the Sub register office. She also deposed about the presence of 5 persons at the time of transaction i.e., herself, two attestors, Saibaba and the person who gave amount were present at that time. She deposed that herself, two witnesses and defendant went to the house of the plaintiff. Whereas the testimony of Pw.2 shows that himself, 2nd attestor and defendant together went to the house of plaintiff. However, the said inconsistency whether P.W.3 also accompanied with them will not affect the case of plaintiff in toto. P.W.3 deposed that she do not remember whether any corrections are occurred in the pronote. P.W.3 deposed that she used to sign the debtor and the witnesses in the black ink and she filled the pronote in black ink. P.W.3 denied the suggestion that the signature on Ex.A1 pronote and her chief affidavit are not similar. P.W.3 was not confronted with her signature on Ex.A1.
9 7.10) Though Pw.1 was questioned with regard to his financial capacity, Pw.1 deposed that he is doing cultivation of 10 acres of land on lease and getting amount of Rs.25,000/- per acre per crop. Though, the plaintiff stated that he is doing cultivation on lease, there will not be any documents to prove the same. By considering the evidence of P.Ws.1 to 3, it shows that their testimonies are well corroborated with each other with regard to the transaction. Without posing any questions to Pw.1 about Adinarayana or the Adinarayana filing the false case against him, putting suggestions to Pw.2 and 3 about Adinarayana and about his acquaintance will not gain any advantage to the case of defendant. The defendant failed to establish any nexus in between the plaintiff and
Gubbala Adinarayana.
7.11) In view of the testimonies of Pw.1 to 3 coupled with Ex.A1 to 3, this court is of considered view that the defendant had borrowed amount and executed Ex.A1 pronote in favour of the plaintiff. Thus, the plaintiff is entitled for the presumption under section 118(a) of N.I.Act, 1881. Now, the burden lies on the defendant to prove his case and to rebut the above said presumption.
7.12) D.W.1 filed his chief examination affidavit by reiterating the same averments of his written statement and he admitted that he run
Vocational Junior college in the year 2013 at Kakinada. D.W.1 denied the signature on the vakalat filed by him and he also denied the signature on the pronote. D.W.1 admitted his signature on his written statement. He deposed that he can send the Ex.A1 for comparison to the Handwriting
Expert and Finger Print expert to show that the signature and thumb mark on Ex.A1 do not belongs to him. The defendant filed an application in I.A.No.679/2019 U/Sec.45 of Evidence Act to send Ex.A1 to the
Forensic Lab for comparison of the signature on it with his admitted signatures. However, this court has dismissed the said application on the 10 ground that the defendant had denied both the signature and thumb mark on Ex.A1, whereas he sought to send the Ex.A-1 for comparison of signature only. If really the defendant has not executed the Ex.A1 pronote and the signature and thumb mark on Ex.A1 do not belongs to him, he would have sought for sending the pronote for comparison of his thumb mark as it is an exact science and the comparison of thumb mark will be helpful to this court to arrive at a right conclusion and it will enable this court to know whether the defendant had executed the pronote or not.
The defendant has not asked to send the document to finger print expert and choose to send for comparison of signatures and thereby this court disallowed the application. If really, Ex.A1 was not executed by the defendant, he would have certainly taken steps to send the Ex.A1 for his admitted thumb marks. Even after dismissal of the said IA.679/19, the defendant did not take any steps to send the Ex.A1 to the finger print expert and remained silent. The conduct of the defendant in not issuing any reply notice after receipt of legal notice is also a lacunae to his case.
Thus, the non giving of reply notice and not taking any steps to send the suit Ex.A1 document to the expert for comparison of thumb mark is a strong circumstances which are infavour of the plaintiff and against him.
7.13) It is the testimony of D.W.1 that himself, Gubbala
Adinarayana and Ch.Satyanarayana did business and G.Adinarayana used to manage and participate actively in all concerned activities of the college including the accounts and finance management and cash transaction with others till February, 2018 and later he and Ch.
Satyanarayana settled the financial deficits in their college on behalf of
Adinarayana and they demanded the Adinarayana to settle the accounts for the debts obtained during his tenure and demanded him to hand over the books, as such he bore grudge about the same and foisted the present suit. If the said version of D.W.1 is correct, he would at least 11 chosen to examine the said Satyanarayana on his behalf to prove about any disputes inbetween them during course of running vocation college.
D.W.1 did not make any attempt to examine the said person i.e.,
Ch.Satyanarayana for the best reasons known to him. The defendant failed to establish that there are disputes inbetween himself and G.
Adinarayana. Thus, the defence raised by the defendant that the plaintiff is a planted person through Adinarayana nor there is a nexus in between the plaintiff and Adinarayana was not proved by him. Thus, the defence raised by the defendant is not true and it is unbelievable to say that the plaintiff is a planted person at the instance of Adinarayana. The defendant failed to prove his case and failed to disprove the case of plaintiff. Since the defendant failed to prove that the suit pronote is a forged or fabricated document, the contention raised by the defendant will not gain any advantage and the material placed by the defendant is insufficient to come to a conclusion that the presumption under section 118 (a) of
N.I.Act, 1881 is rebutted by him and thereby this court is of considered opinion that the defendant borrowed amount from the plaintiff and executed Ex.A1 in his favour and Ex.A-1 suit pronote is a true, valid, supported by consideration and binding on defendant and it is not a forged and fabricated one. Accordingly, these issues are answered in favour of the plaintiff.
8. ISSUE No.3:
As seen from the valuation of the suit, the rate of interest agreed in between the plaintiff and the defendant is 24% p.a. and defendant is a business man. Since the defendant has borrowed amount from the plaintiff for his family expenses and sundry debts and not for agricultural purpose, the interest claimed by the plaintiff is not exorbitant and usurious. In view of answering issue Nos.1 and 2 in favour of the plaintiff, the plaintiff is entitled for recovery of suit amount.
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9. ISSUE No.4:
In the result, the suit is decreed with costs against the defendant for an amount of Rs.4,96,600/- (Rupees four lakh ninety six thousand and six hundred only) together with interest at the rate of 6% p.a., from the date of suit till realization on the principal amount of Rs.3,00,000/- (Rupees three lakh only).
Dictated to the stenographer, transcribed by her, corrected by me
on my laptop and pronounced by me in open court on this the 19th day of June, 2020.
Sd/- M.Siva Kiran
PRL. JUNIOR CIVIL JUDGE,
RAMACHANDRAPURAM.
APPENDIX OF EVIDENCE
WITNESSES EXAMINED
FOR PLAINTIFF:
P.W.1 : Chintapalli Srinivasu
P.W.2 : Pilli Prasad
P.W.3 : Tatavarthi Mahalakshmi
FOR DEFENDANT:
D.W.1: Reddi Saibabu
DOCUMENTS MARKED
FOR PLAINTIFF:
Ex.A.1: Original promissory note dt.01-05-2016 executed by the defendant in favour of the plaintiff.
Ex.A.2: Office copy of registered legal notice dt.21-05-2018 got issued to the defendant by the plaintiff.
Ex.A.3: Postal acknowledgment of the defendant as per complaint settled reply issued by the Post Master, Ramachandrapuram, dt.18-06-2018
FOR DEFENDANT: NIL.
Sd/- M.Siva Kiran
P.J.C.J.