9911796707
TMI Blog2003 (3) TMI 531X X X X Extracts X X X X X X X X Extracts X X X X ..... led a suit for recovery of a sum of Rs. 18,210 on the plea that on 1-4-1985 the defendant borrowed Rs. 18,000 from the plaintiff and executed the suit promissory note Ex. A1 agreeing to repay the amount with future interest at 12 per cent per annum. The defendant contested the suit. He is the owner of a printing press. The plaintiff is also owner of a printing press. According to the defendant, the District Collector invited tenders for printing ration cards; the plaintiff and owners of some small printing presses formed themselves into a syndicate and approached the defendant and requested him to file a tender quoting rate at 0-75 paise per card and the plaintiff and other printers would file tenders quoting a higher price and after the lo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dant failed to pr- ove that it is not supported by consideration and accordingly decreed the suit of the plaintiff. Aggrieved thereby, the defendant preferred an appeal before II Additional District Judge, Kurnool. The learned II Additional District Judge concurred with the finding of the trial Court that the suit pronote Ex. A1 is a genuine pronote. Regarding the consideration, the learned Additional District Judge held that the plaintiff failed to produce his accounts to show that consideration was passed under Ex. A1 pronote and, therefore, he allowed the appeal and dismissed the suit holding that the suit pronote is not supported by consideration. Aggrieved thereby, the plaintiff preferred the present appeal. 3. At the time of admis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... note is admitted, unless the contrary is proved. It shall be presumed that the suit promissory note is supported by consideration recited in the pronote. The lower appellate Court relied upon two decisions in Kundan Lal Rallaram v. Custodian Evacuee Property AIR 1961 SC 1316 and G. Vasu v. S.Y.S. Quadri 1987 (1) ALT 1 (FB) and held that as the plaintiff did not produce his accounts he failed to show that the suit promissory note is supported by consideration. I have considered the judgment of the lower appellate Court. I am satisfied that the said decision is contrary to the principles of law laid down by the Full Bench of this Court. 5. The Full Bench of this Court followed the decision of the Apex Court in Kundan Lal s case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on has something to do with the business of the printing press run by the plaintiff, he cannot thereafter contended that the suit transaction has anything to do with the business of the printing press run by the plaintiff. Therefore, no adverse inference can be drawn against the plaintiff in view of his conduct in not producing his accounts relating to the printing press invoking the provision under section 114 of the Evidence Act. It is pertinent to mention that the defendant did not call upon the plaintiff at any stage of the suit proceedings to produce his account books before the Court and thereafter plaintiff failed to produce his account books before the Court. 7. The principle of law laid down by the Full Bench of this Court is t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e defendant. Unless he rebuts such presumption by adducing convincing evidence, the evidential burden would not shift back to the plaintiff who has the legal burden. Only after the defendant adduces convincing rebuttal evidence it can be held that thereafter the presumption under section 118 does not come to the rescue of the plaintiff. In the present appeal, it is clear from the evidence on record that the defendant failed to rebut initially the said presumption of law. Therefore, overlooking that stage the lower appellate Court committed a mistake in coming to the conclusion that as the plaintiff did not produce his account books, the suit pronote is not supported by consideration. It is not the contention of the defendant that considerat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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