9911796707
TMI Blog1999 (10) TMI 761X X X X Extracts X X X X X X X X Extracts X X X X ..... for a sum of ₹ 15,000/- and the date is 2-11-1987. In respect of the three promissory notes, notice of demand was made and an interim reply followed by final reply was given by the defendants denying their liability. 3. The trial Court framed as many as eight points for determination and holding that the plaintiffs have not proved execution of the promissory notes and the necessity of the defendants to prove that no consideration was passed under the promissory notes, the suits were ultimately dismissed. 4. The main defence in the suits by the defendants was one of total denial, contending that the left thumb impression of the 1st defendant and the signature of the 2nd defendant were taken on blank stamp papers for the purpose of change of khatha of the lands and in view of the disputes that arose between the plaintiff and the defendants, the suits came to be filed. The defence was accepted by the trial Court and the suits came to be rejected. 5. In all these three civil revision petitions, it is contended by the learned counsel for the petitioner that once execution of the promissory note is admitted, there cannot be denial of a decree; the presumption under Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an Ajamkhan Pathan v. Sayad Nazimpacha Babasaheb Inamdar reported in AIR 1985 KAR 67, it has been held as under : The scope of enquiry under Section 115, C. P. C. by the court is very much restricted and limited. There must be jurisdictional error. The court below must have exercised Jurisdiction which it did not possess or it should have failed to exercise jurisdiction over the subject matter or should have committed material irregularity or illegality which has nexus with the question of jurisdiction of the court. The argument of the petitioner in revision pertained to the appreciation of evidence and the application of law to the facts of the case and those could not be enquired into by the High Court in revision'. 8. In the case of Katie Shivappa v. Kori Eranna reported in ILR1986KAR180 to the effect that the plaintiff cannot succeed by establishing cogent and positive evidence that the document was supported by consideration, the following passage was relied on : Though the plaintiff was entitled to an initial presumption under Section 118(1) of the Negotiable Instruments Act, the course of trial has brought in various factors and circumstances, the cumulative eff ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his favour. The evidence required to shift the burden need not necessarily be direct evidence, i.e. oral or documentary evidence or admissions made by opposite party: it may comprise circumstantial evidence or presumptions of law or fact. A plaintiff who says that he had sold certain goods to the defendant and that a promissory note was executed as consideration for the goods and that he is in possession of the relevant account books to show that he was in possession of the goods sold and that the sale was effected for a particular consideration should produce the said account books. If such a relevant evidence is withheld by the plaintiff, Section 114, Evidence Act enables the court to draw a presumption to the effect that, if produced, the said accounts would be unfavourable to the plaintiff. This presumption, if raised by a Court, can under certain circumstances, rebut the presumption of law raised under Section 118 of the Negotiable Instruments Act'. 10. On behalf of the petitioner, in the dictum of Alapati Sivaramakrishnayya v. Kasiwiswanadham reported in AIR 1957 AP 584 was relied on to show that where a man's signature appears in a document, it is for him to expla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ove that fact. If he fails to do so, the presumption is against him. At the same time, before any presumption arises against him, he must have unequivocally admitted that the signature on the document is his. It is not sufficient if he merely states that he has on some occasion affixed his signature on a blank paper and the document in question might have been got up with the help of that document. It may not be necessary for the defendant to specifically state that his thumb impression or signature has been taken to the document in question'. 12. In the case of P. Talamalai Chetty v. Rathinasamy reported in AIR 1998 Mad 23 wherein a blank paper is considered, the following passage was relied on : The judgment of the lower court has to be set aside in view of the provisions of Section 20 of the Negotiable Instruments Act. The Section 20 reads thus : Where one person signs and delivers to another a paper stamped in accordance with the law relating to negotiable instruments then in force in India, and either wholly blank or having written thereon an incomplete negotiable instrument, he thereby gives prima facie authority to the holder thereof to make or complete, as the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en as a defence to avoid a decree based on such instrument, once it is found that the document produced before the Court satisfies the requirements of a promissory note within the meaning of the Negotiable Instruments Act. The instrument may be wholly blank or incomplete in particular in either case, the holder has the authority to make or complete the instrument as a negotiable one. The authority implied by a signature to a blank instrument is so wide that the party so signing is bound to be a holder in due course. Even though the holder was authorised to fill a certain amount and he in fact inserts a greater amount, it is necessary that the sum ought not to exceed the amount covered by the same. 15. As per the law laid down in Queen's Bench in LYODS 'If there is a blank space left for rate of interest, the holder is entitled to insert the legal rate. However, a pro-note containing blank with regard to rate of interest is not incomplete as Section 80 provides for rate of interest at 6% p.a. where the rate of interest is not specified in the instrument'. Promissory notes are often executed in the name of the payer and left unfilled to be afterwards filled by th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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