Dismissed

Narayana Rao Venkatesan, v. Srirangam Jaya Mohini Kumari Bai

Telangana HC6 Oct 2017SA/90/2017

Case brief

AI extract

What is this about?

In this second appeal, the High Court affirmed the First Appellate Court's decree dismissing the appellant-defendant's challenge to a money recovery suit. The Court held the promissory note was validly executed, rejecting arguments of forgery, and upheld the trial court's assessment of evidence.

What did the court decide?

Second Appeal dismissed with costs, confirming the judgment and decree of the First Appellate Court.

Narayana Rao Venkatesan, Vs Srirangam Jaya Mohini… — Property and Title | Telangana HC (2017)

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HONOURABLE SRI JUSTICE U.DURGA PRASAD RAO

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Second Appeal No.90 of 2017

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JUDGMENT:

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This Second Appeal is preferred by the defendant aggrieved by the Decree and Judgment dated 19.08.2016 in A.S.No.161 of 2009 passed by the VI Additional District Judge (FTC), Tirupati whereby and whereunder the learned Judge allowed the appeal filed by the plaintiff by setting aside the Decree and Judgment in O.S.No.306 of 2007 on the file of Additional Senior Civil Judge, Tirupati filed for recovery of money.

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The factual matrix of the case is thus:

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a) The case of the plaintiff is that the defendant borrowed a sum of Rs.70,000/- from her and executed Ex.A1—pronote agreeing to repay the amount with interest at the rate of 24% per annum. The further case of the plaintiff is that inspite of her repeated demands the defendant did not choose to repay the amount. Therefore, she got issued Ex.A2—registered legal notice dated 21.06.2007. The defendant received the said notice but gave evasive reply on 01.07.2007 with all false allegations.

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Hence, the suit for recovery of money.

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b) The defendant filed written statement. While denying all the material averments it is contended, he never borrowed any amount from the plaintiff and did not execute suit pronote and therefore he need not pay any amount to the plaintiff. He further contended that his wife viz. Padma borrowed some amount from the plaintiff and in view of her sustaining

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loss in the business she filed I.P.No.4 of 2005 showing the plaintiff herein as one of the respondents. In view of the same, plaintiff might have fabricated the said pronote with the help of her husband and thus he prayed to dismiss the suit with exemplary costs.

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c) Basing on the above pleadings, the trial Court framed the following issues:

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(1) Whether the suit pronote is true, valid and binding on the defendant?

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(2) Whether the plaintiff is entitled to recover the suit amount from the

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defendant?

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(3) To what relief?

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d) During trial, PWs.1 to 3 were examined and Exs.A1 to A4 were marked on behalf of the plaintiff. On the other hand, DWs.1 to 3 were examined and no documents are marked on his behalf.

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e) On appreciation of facts and evidence, the trial Court observed that suit pronote is a forged one and the same was brought into existence by the plaintiff and her husband and the same was not supported by any consideration and hence the plaintiff was not entitled to decree and accordingly dismissed the suit.

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f) Aggrieved, the plaintiff filed A.S.No.161 of 2009 before the VI Additional District Judge, Tirupati challenging the Judgment of the trial Court.

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g) After hearing both sides, the First Appellate Court observed that there is no hard and fast rule obligating the scribe to use particular

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language at the time of filling up the printed pronote and merely because Ex.A1—pronote was scribed in the house of PW1, her testimony cannot be disbelieved; that the trial Court did not give any reasons as to how it assessed the age of the first attester to the pronote without any medical evidence and it also observed that generally Courts should not step into the shoes of handwriting expert while comparing the admitted and disputed signatures and accordingly allowed the appeal by setting aside the Decree and Judgment in O.S.No.306 of 2007 on the file of Additional Senior Civil Judge, Tirupati.

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Hence, the Second Appeal at the instance of the aggrieved defendant.

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The parties in this appeal are referred as they were arrayed before the Trial Court.

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While admitting the appeal this Court framed the following substantial questions of law:

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1) Whether appreciation of evidence made by the 1^st appellate court is in accordance with law or suffered from perversity?

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2) To what relief?

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Heard arguments of Sri P.Govind Reddy, learned counsel for appellant/defendant. There was no representation on behalf of the respondent/plaintiff.

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6a) Learned counsel for appellant would vehemently argue that First Appellate Court committed grave error in reversing the judgment of the trial Court and decreeing the suit and in the said process, its appreciation of evidence on record was totally perverse and against the accepted principles of Evidence Act. In expatiation, he would submit that the trial Court dismissed the plaintiff’s suit on the main finding that the suit pronote was forged and it was not supported by consideration. To arrive at the said finding, the trial Court firstly observed that PW2—the alleged attester did not support the plaintiff’s case as he did not turn up for crossexamination and so his evidence was eschewed. The defendant examined the same person as DW3 who categorically deposed that he did not attest Ex.A1—pronote and he never gave any affidavit on behalf of plaintiff. Then, PW3 the scribe is concerned, the trial Court observed according to him, plaintiff’s husband took him to Kapilateertham where he scribed the pronote, however, as per plaintiff, pronote was executed at her house at Ramnagar and DW2 who is none other than her husband has affirmed this fact. Thus, the trial Court remarked that PW3’s going to Kapilateertham and scribing the pronote was false. Thus, except the self-serving statement of plaintiff (PW1) there was no reliable evidence to prove Ex.A1— pronote.

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b) Secondly and most importantly, the trial Court having compared the disputed signature of defendant on Ex.A1—pronote with his admitted signatures appearing on postal acknowledgement, suit summons, Vakalat, written statement and his deposition, has categorically held that those signatures are not tallying with the signature on Ex.A1. Thus, the trial

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Court on proper appreciation of evidence on record and by comparing the signatures, gave a correct finding that suit pronote was forged.

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c) However, the appellate Court arrived at altogether a different finding on perverse appreciation of evidence. Though PW3 has stated a different place of execution of pronote i.e. Kapilateertham, as against the claim of plaintiff that it was executed in her house at Ramnagar, still the appellate Court neglected this crucial difference on the observation that Kapilateertham is a significant and landmark pilgrim place at Tirupati and there can be accessibility between Kapilateertham and Ramnagar and therefore, PW3 might have deposed that Ex.A1 was scribed at Kapilateertham. Learned counsel vehemently argued that there is no material on record for the appellate Court to derive such conclusion. Further, PW3 gave a wrong age of one of the attesters viz. M.Venkatesh (DW3). PW3 stated he was aged about 50 years, however, as per trial Court’s observation, DW3 is a young man and may be aged 30 to 32 years. In view of these inconsistencies, the appellate Court ought to have discarded the evidence of PW3 but unfortunately, the trial Court accepted the evidence of PWs.1 and 3 and held as if execution of pronote was established.

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d) Nextly, learned counsel argued that the appellate Court was totally wrong in observing that trial Court ought not to have donned the role of an expert for comparing the signatures. He would submit under Section 73 of Evidence Act, the Court has, such a power. Expert’s evidence, on the other hand, being an opinion, only an optional one and not binding on the

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Court. Therefore, the Court can compare the signatures by itself. He placed reliance on the judgment of the Calcutta High Court in Ajoy Kumar Das vs. Kalpana Das¹ . On these wrong observations, he would argue, the appellate Court set aside the trial Court’s judgment and decreed the suit. He thus prayed to allow the appeal.

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I have perused the record and gave anxious consideration to the argument of learned counsel for appellant. This is a suit based on Ex.A1— pronote whereunder the plaintiff allegedly lent Rs.70,000/- to defendant (DW1). According to plaintiff, the pronote was executed at her house in Ramnagar quarters, Tirupati. The defendant denied the execution of pronote. His version is that his wife—Padma borrowed some amount for doing Saree business from plaintiff and she (Padma) sustained loss in her business and filed I.P.No.4 of 2005 showing plaintiff as one of the respondents. Therefore, the plaintiff fabricated the suit pronote as if the defendant borrowed amount from her to get wrongful gain.

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In the light of above pleadings, the initial burden is on the plaintiff to prove the due execution of the pronote by the defendant. When execution is proved, the statutory presumption under Section 118(A) of Negotiable Instruments Act, 1881 regarding passing of consideration would follow which, of course, is a rebuttable presumption. Now, the question is whether plaintiff could establish the due execution of pronote.

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Apart from herself, the plaintiff examined PW.2—the attestor and PW.3—the scribe to prove the execution of pronote. Before discussion, it

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1 AIR 2007(NOC) 897 (Calcutta)

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must be mentioned, as rightly observed by the First Appellate Court, a pronote is not a compulsorily attestable document. The law ordains, the Wills under Section 63 of Indian Succession Act, 1925; Gifts under Section 123 of Transfer of Property Act, 1882; and Mortgages under Section 59 of Transfer of Property Act, 1882 alone are compulsorily attestable documents. Therefore, examination of attestor in proving the execution of pronote is not a must but an optional.

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Coming to the evidence, PW.1 deposed that the defendant borrowed Rs.70,000/- from her on 20.07.2004 for his family necessities and executed Ex.A.1—pronote promising to repay the amount with interest at the rate of 24% p.a on demand or order. The consideration was paid in the presence of PW.2 and one D.Venkata Ramana, the attestors and the pronote was scribed by PW.3. She further stated that in spite of repeated demands and also issuance of legal notice, the defendant did not pay the amount but gave an evasive reply with false and frivolous allegations and hence she laid the suit.

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a) In the cross-examination she stated, at the time of execution of Ex.A.1 she was residing at Ramnagar quarters and the defendant was also residing at Ramnagar quarters. She is a housewife and defendant is working in TTD canteen and he is a colleague of plaintiff’s husband (DW.2), as her husband is working as Canteen Supervisor. She further stated, she got funds from her father, who was a retired TTD employee and she used to do saree business. She was not a regular money lender and except to the defendant, she did not lend money to others. She

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affirmed that she lent Rs.70,000/- under Ex.A.1 and defendant agreed to pay interest at the rate of 24% p.a but did not pay the amount. She further stated that the defendant himself secured the scribe and the promissory note was scribed in English to some extent i.e, the names and other details were written in English. Ex.A.1 was scribed at her house and her husband was also present at the time of execution of Ex.A.1. She stated that the wife of defendant is her friend but she does not know whether she filed any I.P showing plaintiff as one of the respondents. She denied the suggestion that because the wife of defendant filed I.P showing her as one of the respondents, the plaintiff created Ex.A.1 with the help of attestors. She denied the further suggestion that he did not borrow any amount.

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b) So when the evidence of plaintiff is scrutinized, it is needless to emphasize that the same is in conformity with Ex.A.1—pronote. Her evidence would further reveal that plaintiff and the wife of defendant were friends, but she did not lend money earlier to her and she does not know whether any I.P was filed by her, showing plaintiff as one of the respondents. It is to be noted at this juncture, the defendant did not produce any document showing his wife filing I.P and arraying the plaintiff as one of the respondents therein. For the reasons best known, he has not examined his wife either, to establish the alleged past monetary transactions between the plaintiff and his wife. So when the plaintiff’s evidence is intensely scrutinized, it must be said, nothing could be extracted to impeach the credibility of her evidence. As already stated, the defence plea is that of forgery on account of defendant’s wife filing I.P

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and showing plaintiff as one of the respondents. However, that plea could not be substantiated.

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Coming to corroboration, the evidence of PW.2 is of no avail to the plaintiff because he did not turn up for cross-examination and hence at the request of plaintiff, his evidence was eschewed. However, as already noted supra, a pronote being not a compulsorily attestable document, nonavailability of the evidence of PW.2 is not fatal to the case of plaintiff. The defendant examined him as DW.3 and the impact of his evidence on the reliability of plaintiff’s case will be discussed after a little while.

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Then PW.3 is the scribe of Ex.A.1. In the chief affidavit, he stated that the defendant borrowed Rs.70,000/- from the plaintiff on 20.07.2004 for his family necessities and executed Ex.A.1—pronote on the even date promising to repay the amount with interest @ 24% p.a and this witness scribed the pronote. At the time of execution, the plaintiff, defendant, himself, PW.2 and D.Venkata Ramana were present. He avouched the consideration of Rs.70,000/- was passed and defendant singed on the pronote in their presence. He further stated, DW.2 signed as first attestor and D.Venkata Ramana signed as second attestor. This witness was grilled thoroughly. In the cross he stated to reside at Palli veedhi and studied upto Intermediate and himself and his wife are running a Tiffin centre. He further stated, plaintiff’s house is located at Kapilateertham, Tirupati and he got acquaintance with the husband of plaintiff. During 2004, the plaintiff was staying at Kapilateertham, Rajeev Nagar. He does not know the present residence of plaintiff. He stated, the husband of

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plaintiff used to visit his Tiffin centre and thus developed acquaintance. He has no acquaintance with the defendant and he saw him at the house of plaintiff. The husband of plaintiff took him to the house of plaintiff for scribing Ex.A.1 which was executed at 2:00pm. By the time he went there, the plaintiff, defendant, two attestors were present. Plaintiff’s husband provided the names and other details for filling up Ex.A.1 which was drafted half in Telugu and half in English. The defendant borrowed money for business. It took half an hour for scribing Ex.A.1. Venkatesh was the attestor of Ex.A.1 and he might be aged about 50 years. He denied the suggestion that he prepared Ex.A.1 due to his acquaintance with the husband of plaintiff and he forged the signature of defendant. When the evidence of this witness is analysed, two discrepancies are glaring. This witness stated as if the pronote was executed in the house of plaintiff which was in Kapilateertham but in fact plaintiff and her husband were residing in Ramnagar. The second discrepancy is ofcourse with regard to the age of PW.2 (DW.3). Whether these discrepancies will cut across the veracity of his evidence, which, otherwise would show that the defendant borrowed Rs.70,000/- from the plaintiff and executed the said pronote by receiving the consideration, has to be seen.

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It is to be noted, the defendant summoned the husband of plaintiff and examined on his behalf as DW.2 probably to establish that during the relevant period of Ex.A.1, plaintiff and DW.2 were residing in Ramnagar but not in Kapilateertham. DW.2 stated that presently he is residing in Yashoda nagar and previously they were staying in Ramnagar till the end of 2005. He further stated, he know PW.3, PW.2 and D. Venkata Ramana

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and he got acquaintance with PW.3 and used to sell idly at Ramnagar, however he had no acquaintance with other two. Most importantly, he stated that the suit pronote transaction took place at his house at Ramnagar on 20.07.2004 in the morning hours . He further stated that the evidence of PW.2 (probably PW.3) that he signed (probably scribed) the promissory note at his instance at Kapilateertham is false. So as stated supra, DW.2 was basically examined to disprove the statement of PW.3 that he scribed the pronote at the house of plaintiff in Kapilateertham. No doubt, by his evidence, the evidence of PW.3 that the pronote was scribed in Kapilateertham proved to be not correct. However, one crucial fact spoken by PW.3 is proved to be correct by virtue of the evidence of DW.2. PW.3 might have faltered with regard to the location of the residence of plaintiff i.e, instead of Ramnagar he has stated as Kapilateertham. However, the core of his evidence that he went at the instance of DW.2 to their house and scribed Ex.A1—pronote and defendant borrowed amount and executed Ex.A.1—pronote stood undisturbed and rather it was corroborated by DW.2 himself, who was examined as the witness on behalf of defendant. DW.2 stated that the suit pronote transaction took place at his house at Ramnagar. So the variance between DW.2 and PW.3 is only with regard to the place of execution. However, both of them would avouch that indeed suit pronote was executed. It is pertinent to note that when DW.2 stated that the suit pronote transaction took place at his house at Ramnagar, the defendant did not declare him as hostile and suggest that no transaction under Ex.A.1 took place and Ex.A.1 was fabricated. Therefore, the evidence of DW.2

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regarding execution of pronote remained unchallenged and it supported the evidence of PW.3 to the extent that suit pronote transaction in fact took place. In that view of the matter, the mere difference in the place of execution as spoken by PW.3 cannot be given much weight to discard his evidence.

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So in the ultimate analysis, the evidence of PW.3 corroborates PW.1 regarding execution of pronote by the defendant. Therefore, the statutory presumption under Section 118(A) of N.I Act regarding passing of consideration followed. The burden then shifts to the defendant to disprove the case of plaintiff.

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The defendant was examined as DW.1. In his evidence he denied the execution of Ex.A.1 and further deposed that his wife Padma borrowed some amounts for her Saree business from plaintiff and having sustained loss, she filed I.P.No.4 of 2005 showing plaintiff as one of the respondents. He apprehended that plaintiff might have fabricated the suit pronote. In the cross-examination he admitted his signatures on Vakalat, written statement and postal acknowledgment and stated that those signatures are at variance with the signature on Ex.A.1. He denied the suggestion that in view of his being a colleague of plaintiff’s husband, he borrowed the amount from plaintiff under Ex.A.1. So when his evidence is scrutinized, his specific case is that suit pronote is fabricated because his wife filed I.P against the plaintiff and some others. As already stated supra, though he claimed that the said I.P was allowed, he did not file even a scrap of paper in proof of filing the I.P. So the said fact cannot be

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believed and taken as a reason to hold suit pronote was fabricated. Coming to DW.3, no doubt he stated that he did not attest Ex.A.1 and did not give affidavit on behalf of plaintiff. However, having regard to the totality of the circumstances, it can be safely concluded that he was won over by the defendant after he gave affidavit on behalf of plaintiff. When the execution of Ex.A.1 is believed and his presence and signing as one of the attestors as spoken by PW.1 and DW.3 is also believed, his denial of the said fact would only suggest an inevitable inference that he was won over by the defendant obviously to wriggle out of the liability. Therefore, it can be concluded that the defendant failed to establish that the suit pronote was a rank forgery.

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Coming to the trial Court venturing to compare the disputed signature of defendant on Ex.A.1 with the signatures appearing on summons, Vakalat and written statement, it must be said, though Trial Court had such power of comparison but it had not used such power with prudence. The signatures taken by the Trial Court for comparison suffer two vices: i) They were not contemporaneous to Ex.A.1. ii) Further, in view of plea of forgery, the tendency of the defendant to disguise his natural and original style while signing on summons, Vakalat, written statement cannot be ruled out. Therefore, instead of relying upon them, the Trial Court ought to have sought for more authenticated and admitted signatures of the defendant prior to Ex.A.1. Therefore, the procedure adopted by the Trail Court cannot be countenanced. For the above reasons, the decision cited by the appellants is of no avail.

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So on a conspectus, the First Appellate Court rightly decreed the suit by setting aside the judgment of the Trial Court and I find no merits in this Second Appeal.

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In the result, this Second Appeal is dismissed with costs by confirming the judgment and decree passed by the First Appellate Court in A.S.No.161 of 2009.

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As a sequel, miscellaneous applications pending, if any, shall stand

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closed.

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_________________________
U. DURGA PRASAD RAO, J
Date: 06.10.2017
Murthy/scs

Narayana Rao Venkatesan, v. Srirangam Jaya Mohini Kumari Bai

Case brief

What is this about?

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Narayana Rao Venkatesan, v. Srirangam Jaya Mohini Kumari Bai

Case brief

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What did the court decide?

What the court decided

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