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IV ACJ(JD), MTM OS No.395/2022 Dt.21.04.2025
In the Court of IV Additional Civil Judge (Junior Division), Machilipatnam
Present: Smt. M.V.VAHINI VI Addl.Civil Judge(Junior Division), Machilipatnam
Monday, this the 21st day of April, 2025
OS No.395/2022
Between Ravi Naga Suresh, S/o.Vijaya Sivaramakrishna Prasad, aged about 35 years, R/o.Chodavaram Village, Pedana Mandal …… Plaintiff
And
Kagitha Veera Venkata Nagaraju, S/o.late Venkateswara Rao, aged about 45 years, R/o.Gandhinagar, Machilipatnam …… Defendants
This suit is presented before me for final hearing on 16.04.2025 in the presence of Sri.S.Balaji Rao, Advocate for the plaintiff and Sri.G.V.Ramana, Advocate for the defendant and upon perusing the material on record and the matter having stood over for consideration till this day, this court has delivered the following
J U D G E M E N T:-
1. This suit is filed basing on six promissory notes for recovery of
Rs.8,15,990/- from the defendant with subsequent interest at rate of 12% per annum from the date of suit till the date of realization on the principal amount of Rs.7,91,200/- and for the costs of the suit.
2. The case of the plaintiff in brief: That the plaintiff being Agriculturist sold 500bags of paddy weighing 22350 kgs for Rs.3,85,458/- to the defendant in a Lorry bearing No.AP27X2034 weighed at Likita nilaya weigh bridge, Pedana.
On 10.04.2022, the plaintiff sold 375 bags of paddy each bag worth
Rs.1,350/- weighing 16115 kgs for Rs.2,88,630/- , to the defendant in Lorry bearing No.AP08T5335 at Chodavaram weighed at Likita nilaya way bridge, Pedana. Again the plaintiff sold 519 bags of paddy 2
IV ACJ(JD), MTM OS No.395/2022 Dt.21.04.2025 for Rs.4,22,004/- each bag weighing 45 kgs and worth Rs.1,380/- delivered to the defendant in Lorry bearing No.APTY3208 weighed at
Likita nilaya way bridge, Pedana and the defendant agreed to pay within 15 days from the date of loading as per the custom prevailing in the area and that the ryth has to wait for 15 days to get the money from the paddy agent as such the plaintiff waited till the end of April 2022. The plaintiff further submitted that there was transactions between the plaintiff and defendant that he used to sell the paddy to the defendant and the defendant used to pay the amounts within 15 days. Thereafter the plaintiff has been demanding him to pay the total amount of Rs.10,95,500/- including earlier dues since January 2022.
The defendant requested him to wait till June as he had given paddy to the Government but the Government not given any amount to him.
The defendant voluntarily executed promissory notes for said transactions and he wrote a chit mentioning that he received three
Lorries of paddy on three occasions and total liability of
Rs.10,95,500/- and balance of Rs.1,30,200/- is added with the existing liability and in total Rs.12,26,200/-. Out of Rs.12,26,200/-, the defendant paid Rs.3,50,000/- through bank and the remaining balance is of Rs.8,91,200/-. Out of Rs.8,91,200/-, he paid cash of
Rs.1,00,000/- and the remaining balance is of Rs.7,91,200/- . On 17.06.2022, at the house of the defendant, he executed six promissory notes each for Rs.1,00,000/- in favour of plaintiff in the presence of G.Naga Seshu Babu being elder settled the matter between them. Still the defendant is liable to pay Rs.7,91,200/- and he promised to the plaintiff that he will pay the amount by 20.07.2022.
On 20.07.2022, when the plaintiff requested him to pay, he did not pay the balance amount due to the plaintiff. The defendant is liable to pay Rs.7,91,200/- from 20.04.2022 and their oral understanding is that the defendant has to pay 12% interest from 20.04.2022. But the defendant failed to pay the balance amount of Rs.7,91,200/- to the plaintiff. Hence, this suit.
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IV ACJ(JD), MTM OS No.395/2022 Dt.21.04.2025
3.Denying the material averments of the plaint, the defendant filed written statement and contended inter alia that the plaintiff sold the paddy in different occasions. Previously there arose disputes between the brother-in-law of the plaintiff and the defendant, in the year 2021 regarding to the paddy business in Chodavaram Village, Pedana
Mandal and then the defendant purchased the paddy from the plaintiff and paid entire consideration amount after selling the paddy through his account and also from their millers and by way of cash, thereafter also there was dispute between the defendant and 1st attestor/brother- in-law of plaintiff to take revenge on him and defame his name, the plaintiff and his brother-in-law harassed the defendant by filing this suit against him by created and fabricated the suit promissory notes.
At the time of payment, the plaintiff gave a stamp receipt in favour of defendant. The stamp affixed on this suit promissory note age of ink and paper used goes to show that the suit promissory note was fabricated. The execution of alleged promissory notes were not proper and valid. The plaintiff is not entitled to claim the interest and it is very high and the suit is liable to be dismissed. There is no cause of action. Hence prays to dismiss this suit with costs.
4.Basing on the above pleadings, the following issues are settled for trial:
1. Whether the Plaintiff sent paddy bags to Defendant on three occasions:-
a). 500 bags of paddy weighing 22350 Kgs worth an amount of Rs.3,85,458/-
b). 375 bags of paddy weighing 16115 Kgs worth an amount of Rs.2,88,630/-
c). 519 bags of paddy each bag containing 45Kgs worth an amount of Rs.4,22,004/- on that Defendant fell due of Rs.10,95,500/- to be paid to the Plaintiff.
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IV ACJ(JD), MTM OS No.395/2022 Dt.21.04.2025
2. Whether Defendant executed six promissory notes of Rs.1,00,000/- each in favour of plaintiff after making Part payment on the due amount of Rs.10,95,500/- for the remaining balance of the debt of Rs.7,91,200/- ?
3. Whether 06 promissory notes are forged as alleged by the Defendant?
4. Whether the 06 promissory notes are true valid and supported by consideration?
5. Whether the plaintiff is entitled to recover the suit amount from defendant?
6. To What relief?
5. During the trial of the case, on behalf of plaintiff, PWs.1 and 2 were examined and Exs.A1(i) to A1(iv), A2 to A4 were marked. On defendant side, DW.1 was examined.
6.Heard. Perused the record.
7. The plaintiff himself was examined as PW.1. During the cross
Examination he stated in Chowdavaram Village, Ac.1.00 of land yields 40 bags of paddy, in Tallapalem Village Ac.1.00 of land yields 25 bags of paddy. The transaction of the paddy between PW.1 and the defendant is of the Rabi Season. Harvesting and selling of the paddy takes place in between December to January for the Rabi Season, it may even extend till the yielding of the black gram crop. In Tallapalem
Village the second crop of black gram was not cultivated. He loaded the paddy bags in to the lorry sent by the defendant but he do not know where those bags were delivered. He does not knew the names of the drivers who came in those lorries. The defendant was not with them while loading the paddy bags in to lorry, but his assistant was present there. Except his oral evidence, he did not file any document to show that the defendant is a paddy dealer. The entire paddy bags were cultivated by him they were loaded into 03 lorries but He does 5
IV ACJ(JD), MTM OS No.395/2022 Dt.21.04.2025 not remember how many bags were loaded in to each lorry. When confronted with a slip containing the information with the number of the vehicle and the No. of bags loaded into each lorry, witness admitted that in one vehicle 500 bags loaded in other vehicle 375 bags were loaded and in another vehicle 519 bags were loaded. The defendant is not owner to the said lorries. He is unable to call any of the lorry drivers to come to the court as a witness and give the evidence that he was sent by the defendant as he does not knew any of them. He denied that he loaded and sent the paddy in lorries to the defendant on 01.04.2022, 16.04.2022 and 24.04.2022. He stated that, he is unable to call the lorry drivers and owners to come as a witness as he had not loaded and sent the paddy. Except his oral demands, he had not served any legal notice to defendant seeking payment for the paddy. He admitted that prior to filing of this suit, the defendant transferred an amount of Rs.3,50,000/- to his account,he had not furnished any documents regarding the transaction of the said amount Rs,3,50,000/-. He filed this suit for an amount of
Rs.7,91,200/-. He filed six promissory notes along with the plaint and each promissory note was executed for a sum of Rs.1,00,000/-. The defendant have to give me a total sum of Rs.7,91,200/- but the six promissory notes are executed for Rs.6,00,000/- only as the defendant promised to pay the remaining amount. He filed this suit the principal amount as Rs,7,91,200/- instead of the Rs.6,00,000/- from the six promissory notes. He denied that his suit is not valid as he filed the suit with the principal amount as Rs.7,91,200/- where as filed only six promissory notes executed for only Rs.6,00,000/-. He knew the defendant filed the written statement. The contents of the written statement are not true. PW.1 not mentioned that the contents of the written statement are false in his chief affidavit. He denied that, he loaded the paddy to the defendant and they were delivered to him on the said dates and he does not own Ac.10.00 of agricultural land and do not cultivate AC.20.00 of land as lease. Except his oral request, no 6
IV ACJ(JD), MTM OS No.395/2022 Dt.21.04.2025 mediations were held before the elders. He denied that, the defendant is not a paddy dealer and he filed this false suit using forged documents in order to harass defendant out of previous disputes. He is ready to send the Ex.A1(i) to A1(vi) to the expert opinion if required.
He knew one Gantasala Balagangadhara Sastri of the Chowdavaram
Village, he is the priest in Shivalayam Temple and he is the scribe of
Ex.A1(i) to A1(vi). The said promissory notes were executed at the office of the defendant around 10.00AM. PW.1 and the scribe came to the office of the defendant. He knew the office of the defendant but he does not knew its door no. and address particulars. he does not remember in the Ex.A1(i) to A1(vi) the place of their execution was mentioned or not. He does not remember whether the date of transaction of the paddy was mentioned on the promissory notes or not. He knew the scribe for about 12 to 15 years. He does not knew what he studied up to. He could call the scribe to examine in as a witness before this court as he is a known person to PW.1. PW.1 denied that, the promissory notes were not executed in 2022 in the month of June but they were filled a day before filing of this court. The witness said that the promissory notes were executed on 17.06.2022 and he filed the suit on 25.07.2022. He denied that, he filed the suit without much gap not without serving any legal notice to the defendant as the promissory notes were forged ones and PW.1 is not entitled to any relief based on the promissory notes, the suit is not valid as proper cause of action do not arise and the suit is not valid as
PW.1 not shown the proper calculation.
8. PW.2 in his cross examination stated that PW1 is not a relative to him. Defendant is also not a relative or friend to him and he does not knew PW1 belongs to which place and the occupation of PW1. No one asked him to present as a witness in this case. PW.2 did not engaged any advocate. PW1 stated him the contents drafted in his chief examination affidavit. He admitted that PW1 got prepared his chief 7
IV ACJ(JD), MTM OS No.395/2022 Dt.21.04.2025 examination affidavit and requested him to appear as a witness before the court and depose the same as in affidavit and hence he came as a witness to state the things that were in his knowledge. PW.2 knew the personal issues involved in this suit. He denied that he does not knew anything about this suit and he came as a witness upon the request of
PW1 as he is his relative. PW.2 put his signatures on 07 or 08 promissory notes as attestor on the request of PW1. He does not knew basing on how many promissory notes this present suit is filed.
9. DW.1 in his cross examination stated that since 20 years he is doing paddy business. Since for about 5 to 6 years he stopped purchasing paddy from plaintiff. He does not knew where Likitha
Nithya weigh bridge is situated. The paddy DW.1 purchased from the villagers of Chodavaram and Kuduru were weighed at the
Venkatadatta weigh bridge but not at Likitha Nithya weigh bridge.
There were disputes between the plaintiff and DW.1. The disputes were due to politics but not because of monetary transactions. When confronted with the signatures on the Ex.A(i) to A(vi) the defendant denied they are not his signatures. DW.1 not purchased any paddy that was transported in the vehicles with Nos.3708, 5335 and 2034.
He denied that, the plaintiff transported to the paddy through the above said vehicles numbers and in-turn, DW.1 executed the promissory notes as consideration.
Issue No.1
10. The plaintiff himself was examined as PW.1. PW.1 filed his chief affidavit reiterating the contents of the plaint. Through PW.1, Exs.A1(i) to A1 (iv), A2 to A4 were marked. As per PW.1, the defendant executed six promissory notes each for Rs.1,00,000/- towards the payment of the amount for the paddy supplied to the defendant. Here the initial burden is on the PW.1 to prove that he supplied paddy to the defendant on three occasions ie., 1). 500 bags of paddy on 01.04.2022 8
IV ACJ(JD), MTM OS No.395/2022 Dt.21.04.2025 whose net weight is 22350 kgs in vehicle bearing No.AP27X2034, 2).
375 bags of paddy on 16.04.2022 whose net weight is 16115 kgs in vehicle bearing No.AP05TT5335, 3). 519 bags of paddy on 24.04.2022 in vehicle bearing No.AP TY3208. To substantiate that PW.1 supplied paddy to defendant, he filed Ex.A2 to A4 i.e., the weighbridge receipts of Likhitha nitya weigh bridge.
11. As per the chief affidavit, the PW.1 mentioned three occasions of transporting paddy to the defendant, for the sake of convenience, the same is tabulated as follows:
Table No.1
Transac- Date No. of Bags Vehicle No. Cost of Amount
tion No. each Bag mentioned by
PW.1
1.01.04.2022500AP27X2034Rs.1,300/-Rs.3,85,458/-
2.10.04.2022375AP08T5335Rs.1,350/-Rs.2,88,630/-
3. -Nil-519APTY3208Rs.1,380/-Rs.4,22,004/-
Rs.10,95,500/- Total:
The correct total of the transactions (Rs.3,85,458/- + Rs.10,96,092/-
Rs.2,88,630/- + Rs.4,22,004/-)
Based on Exs.A2 to A4 and the contents of the chief affidavit, the same above transactions with correct mathematical calculations (amount based on the no. of bags and cost of each bag) tabulated as follows:
Table No.2
Transac- Date No. of Vehicle No. Cost of Total cost of the
tion No. Bags each Bag paddy Bags
supplied
1.01.04.2022500AP 27 X 2034Rs.1,300/-Rs.6,50,000/-
2.16.04.2022375AP 05 TT 5335Rs.1,350/-Rs.5,06,250/-
3. 24.04.2022519AP TY 3208Rs.1,380/-Rs.7,16,220/-
Total: Rs.1872470/-
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12. As per the chief affidavit of PW.1 and Ex.A2 to A4, there are typographical errors and also wrong mathematical calculations in terms of calculating the cost of paddy transported. PW.1 stated that as per the custom prevailing in the area, the ryth has to wait for 15 days to get money from the paddy agent. The defendant also admitted that previously he used to purchase paddy from PW.1 but due to some disputes, he stopped buying paddy from PW.1 which shows that previously there are transactions between PW.1 and the defendant. In such case , even based on Ex.A2 to A4, there are paddy transactions between the Plaintiff and defendant.
Issue No.2 to 5
13. This suit is filed for recovery of an amount of Rs.8,15,990/- which is the principal and interest on Rs.7,91,200/- which the defendant is due to the plaintiff towards the amount for purchase of paddy. Somehow PW.1 stated that defendant is liable to pay
Rs.10,95,500/- which also includes earlier dues since January 2022 and as a final settlement for previous dues of Rs.1,30,200/- which means a total of Rs.12,26,200/- (the calculation of Rs.10,95,500/- +
Rs.1,30,200/- = Rs.12,25,700/-). PW.1 stated that out of that due amount, the defendant paid Rs.3,50,000/- through bank and
Rs.1,00,000/- cash by hand. He even admitted the same during his cross examination regarding the payment of Rs.3,50,000/- through bank but he did not furnish any document in support of the same.
After the above said two transactions of Rs.3,50,000/- and Rs.1,00,000/-, the balance amount is Rs.7,91,200/-, then in the presence of G.Naga Seshu
Babu/PW.2, the defendant settled the matter with PW.1 and executed six promissory notes each for Rs.1,00,000/- on 17.06.2022 at the house of defendant mentioning the purpose as towards the previous dues on paddy purchase. PW.2 stated that he was present at the time of selling paddy to the defendant on 01.04.2022, 10.04.2022 and also for the 3rd transaction.
Defendant executed six promissory notes on 17.06.2022 in favour of PW.1 in the presence of PW.2. During cross examination, PW.2 stated that neither 10
IV ACJ(JD), MTM OS No.395/2022 Dt.21.04.2025
PW.1 nor the defendant is a relative to him and he came to the court to state the things which were in his knowledge. PW.2 also admitted that there are personal issues involved in this suit and PW.1 got prepared his chief affidavit. PW.2 also stated that he signed on 7 or 8 promissory note as attestor on the request of PW.1 but he do not know based on how many promissory notes this suit is filed.
14. Therefore, this court arrives to conclusion that the assertion made by PW.1 through his chief examination and pleading can safely be accepted, having considering the above said oral and documentary evidence, it is held that the plaintiff has prima-facie discharged his burden and thus a presumption under Section 118 of
NI Act overwhelms the scene. Hence the burden gets shifted on to the defendant to rebut such presumption that the suit promissory note is forged and fabricated one, but the defendant had failed to discharge such burden by adducing any evidence. Thus it can be said plea of the defendants gets negativated that the plaintiff had forged and fabricated the suit promissory note to get wrongful gain and that it can be said that the defendant has taken such a plea only to avoid probable decree and delay it as far as possible.
15. That apart, a careful perusal of the cross-examination of P.Ws.1 and 2 would show that the defendant failed to elicit anything to dis- credit their testimonies regarding the execution of Ex.A1(i) to (vi)/ promissory notes by the defendant. Thus, the depositions of P.Ws.1 and 2 should be relied upon so far as to extent of the 6 promissory notes. As said, the defendant simply denied the execution of Ex.A1 (i) to (vi), but failed to take any steps in order to challenge Ex.A1 (i) to (vi) for Expert opinion as being false and fabricate documents. Since the plaintiff succeeded in his attempt to bring into record the primary facts relating to execution of promissory notes he is entitled for the benefit of presumption available under section 118(a) of N.I. Act, con- 11
IV ACJ(JD), MTM OS No.395/2022 Dt.21.04.2025 sequent thereto, the plaintiff is entitled for the suit amount based upon the 6 promissory notes as prayed for.
16. Now, as it is suit for promissory note, it is essential to consider the Section 4 of Negotiable Instruments Act. Under Section 4 of N.I
Act, the promissory note is defined to be an instrument in writing (not being a bank-note or a currency-note) containing an unconditional undertaking, signed by the maker, to pay a certain sum of money only to, or to the order of, a certain person, or to the bearer of the instrument.
17. Considering the facts and circumstances of the case on hand, this court holds that Ex.A1(i) to (vi)/suit promissory notes satisfies the above conditions, as required under Section 4 of NI Act. For the above reasons, this court presumes under Section 118 of NI Act that the suit promissory notes were executed for valid consideration and it is true, valid and binding on the defendants. No evidence is adduced by the defendant to prove his defence. Therefore, this Court finds issues
Nos.2 to 5 in favour of the plaintiff and against the defendant.
18. Issue No.6: In the result, the suit is partly decreed with proportionate costs directing the defendant to pay the sum of Rs.6,07,890/- to the plaintiff with the interest @12% per annum from the date of filing of suit till the date of decree, and thereafter @6% per annum till the date of realization on the principal amount of Rs.6,00,000/- (Rupees six lakhs only).
Typed to my dictation by stenographer, corrected and pronounced by me in open court, this the 21st day of April, 2025.
Sd/-M.V.VAHINI
IV Additional Civil Judge(Junior Division) Machilipatnam.
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APPENDIX OF EVIDENCE
Oral Evidence
For plaintiff For defendant: PW.1: R.Naga Suresh DW.1: K.V.V.Nagaraju PW.2: G.N.Seshu Babu
Documentary Evidence
For plaintiff For defendant: -Nil- Ex.A1: (i to vi) Six promissory notes dt.17.06.2022 executed by the de- fendant in favour of the plaintiff Ex.A2: Weighment receipts dt.01.04.2022 in Lorry No.AP27Y2034 Ex.A3: Weighment receipts dt.16.04.2022 in Lorry No.AP08T5335 Ex.A4: Weighment receipts dt.20.04.2022 in Lorry No.APTY3208.
Sd/-M.V.VAHINI
IV Additional Civil Judge(Junior Division)
Machilipatnam.