1965 (9) TMI 72 - HC - Indian Laws

Summary

Issues:
1. Material alteration in a promissory note changing the date from 22nd to 29th.
2. Burden of proof on the party seeking to enforce a promissory note with a material alteration.
3. Application of Section 87 of the Negotiable Instruments Act regarding material alterations.
4. Requirement for explanation of alterations in negotiable instruments.
5. Presumptions and burdens of proof in cases of altered promissory notes.

Analysis:

The judgment pertains to a revision petition arising from a suit for the recovery of a sum based on a promissory note. The central issue was a material alteration in the promissory note, changing the date from 22nd to 29th, allegedly to bring the suit within the limitation period. The lower court found the alteration suspicious due to erasures and rewriting, leading to the dismissal of the suit.

The main contention raised was the burden of proof on the party seeking to enforce the promissory note with a material alteration. The plaintiff failed to explain the alteration satisfactorily, leading to the application of Section 87 of the Negotiable Instruments Act, which renders a negotiable instrument void if materially altered without consent. The date of a promissory note was deemed a material part, and any alteration in it would render the note void unless with mutual consent.

The judgment emphasized the requirement for the party holding the altered instrument to explain the alteration, especially when seeking enforcement. The law places a heavy burden on the plaintiff to prove the alteration's legitimacy and timing. Failure to provide a satisfactory explanation results in the presumption that the alteration occurred post-execution, rendering the promissory note void under Section 87.

The judgment cited legal principles from English law and Indian decisions, highlighting the necessity for parties to address alterations in negotiable instruments. It underscored the importance of removing suspicions surrounding altered documents and the consequences of failing to provide a credible explanation for such alterations.

In conclusion, the revision petition was dismissed as the plaintiff failed to offer a valid explanation for the material alteration in the promissory note, leading to its voidance under Section 87. The judgment reiterated the legal stance on altered negotiable instruments and the burden of proof on parties seeking to enforce such instruments.