{"id":139098,"date":"2004-03-01T00:00:00","date_gmt":"2004-02-29T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/chidambara-pathar-vs-k-r-mani-asari-on-1-march-2004"},"modified":"2018-09-18T21:17:22","modified_gmt":"2018-09-18T15:47:22","slug":"chidambara-pathar-vs-k-r-mani-asari-on-1-march-2004","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/chidambara-pathar-vs-k-r-mani-asari-on-1-march-2004","title":{"rendered":"Chidambara Pathar vs K.R. Mani Asari on 1 March, 2004"},"content":{"rendered":"<div class=\"docsource_main\">Madras High Court<\/div>\n<div class=\"doc_title\">Chidambara Pathar vs K.R. Mani Asari on 1 March, 2004<\/div>\n<pre>       \n\n  \n\n  \n\n \n \n IN THE HIGH COURT OF JUDICATURE AT MADRAS\n\nDATED: 01\/03\/2004\n\nCORAM\n\nTHE HONOURABLE MR.JUSTICE M.CHOCKALINGAM\n\nSECOND APPEAL No.885 of 1993\n\nChidambara Pathar                                      .. Appellant\n\n-vs=\n\nK.R. Mani Asari                                                .. Respondent\n\n        This second appeal is preferred under Sec.100 of  the  Code  of  Civil\nProcedure against the judgment and decree of the II Additional District Judge,\nTiruchirapalli  dated  29.7.1992  in  A.S.No.79\/92 confirming the judgment and\ndecree of the District Munsif,  Perambalur,  in  O.S.No.5  33  of  1987  dated\n15.12.1988.\n\n!For Appellant :  Mr.T.Thirumaran\n\n^For Respondent :  Mr.G.Sridharan\n                for Mr.T.M.Hariharan\n\n:JUDGMENT\n<\/pre>\n<p>        This  second appeal is directed against the judgment of the learned II<br \/>\nAdditional District  Judge,  Tiruchirapalli,  made  in  A.S.No.79  of  199  2,<br \/>\naffirming  the  judgment  of the trial Court dismissing a suit on a promissory<br \/>\nnote.\n<\/p>\n<p>        2.  The appellant, as plaintiff, filed the suit for recovery of money,<br \/>\nbased on an assignment, made in his favour by the promisee of Ex.A1 promissory<br \/>\nnote.  According to the plaintiff, the  defendant  executed  Ex.A1  promissory<br \/>\nnote on 22.11.1986 in favour of the assignor, in consideration of Rs.10,000\/-,<br \/>\nagreeing  to  pay  the principal along with interest at 12% per annum, and the<br \/>\npromisee under the  promissory  note  one  Shanmugam  made  an  assignment  on<br \/>\n27.7.1987  in  favour of the plaintiff, and despite many a demand, no response<br \/>\nwas forthcoming, and hence, the suit for recovery of money.\n<\/p>\n<p>        3.  The suit was resisted by  the  respondent\/defendant  stating  that<br \/>\nthere was no consideration for the promissory note; that there was no occasion<br \/>\nfor  the defendant to borrow any amount from one Shanmugam; that it was a bond<br \/>\nexecuted in favour of Shanmugam,  whereby  the  third  parties  were  sent  to<br \/>\nforeign  countries,  and  the  defendant  stood  by  way  of  surety;  that no<br \/>\nconsideration passed that time, and hence, the suit was to be dismissed.\n<\/p>\n<p>        4.  The trial Court framed the necessary issues, tried  the  suit  and<br \/>\ndismissed the  same.   An appeal at the instance of the plaintiff also met the<br \/>\nsame fate.  Hence, this second appeal at the instance of the plaintiff.\n<\/p>\n<p>        5.  At the time of admission, the following  substantial  question  of<br \/>\nlaw was formulated by this Court:\n<\/p>\n<p>&#8220;Whether  the Courts below are right in dismissing the suit on the ground that<br \/>\nthe plaintiff is not a holder in due course or endorsee for  collection  after<br \/>\nholding that the pronote is genuine and supported by consideration?&#8221;\n<\/p>\n<p>        6.   This  Court  heard the learned Counsel for the appellant and also<br \/>\nthe learned Counsel for the respondent on those contentions.\n<\/p>\n<p>        7.  This Court is unable to see any merit in this second appeal.\n<\/p>\n<p>        8.  Both the Courts below have  recorded  a  concurrent  finding  that<br \/>\nEx.A1  promissory  note  was  executed  by the defendant in favour of the said<br \/>\nShanmugam, and it was supported by consideration.  But, both the  Courts  have<br \/>\ndisagreed  with  the  plaintiff&#8217;s  case,  by  stating that there was no proper<br \/>\nassignment in the eye of law and have found  that  there  was  no  passing  of<br \/>\nconsideration,  as  found in the document, for the assignment in question, and<br \/>\ntaking into consideration the evidence, adduced and the recitals, found in the<br \/>\ndocument, the transfer lacks good faith, and hence,  the  suit  could  not  be<br \/>\ndecreed.   The  learned  Counsel  for  the appellant with vigour and vehemence<br \/>\nwould submit that both the Courts have taken an erroneous view; that there was<br \/>\na proper transfer in good faith; that it is true that  the  transfer  must  be<br \/>\nsupported by consideration; that it is not required in law that the recital as<br \/>\nto the assignment, should also speak about the payment of consideration by the<br \/>\nassignee to the assignor; that both the assignor and the assignee, examined on<br \/>\nthe  side  of  the plaintiff, have clearly spoken to the fact that there was a<br \/>\nconsideration that passed, and hence, the views taken by both the Courts, have<br \/>\ngot to be set aside, and a decree be  granted  in  favour  of  the  appellant.<br \/>\nSec.9  of the Negotiable Instruments Act defines &#8220;holder in due course&#8221; as the<br \/>\nperson, who for consideration becomes the possessor of a promissory note, bill<br \/>\nof exchange or a cheque payable to the bearer.    Needless  to  say  that  the<br \/>\nholder  in due course means (1) He must be a holder for consideration; (2) The<br \/>\ninstrument must have been transferred to him before it became payable; and (3)<br \/>\nHe must be a transferee in good faith.  In the  instant  case,  a  perusal  of<br \/>\nEx.A2, the assignment, does not speak about the passing of the consideration.\n<\/p>\n<p>        9.   As  rightly pointed out by the learned Counsel for the appellant,<br \/>\nthe law does not require that it should be specifically stated as to what  was<br \/>\nthe actual  consideration  and  whether  the consideration also passed.  It is<br \/>\ntrue that there has been an gnment.  Both the witnesses, examined on the  side<br \/>\nof  the  plaintiff, have spoken to the fact that consideration had passed from<br \/>\nthe hands of the assignee to the assignor, which resulted in  the  assignment.<br \/>\nNeedless to say, in cases like this, a duty is cast upon the plaintiff to show<br \/>\nthat the  transfer  was made in good faith.  Now, at this juncture, it becomes<br \/>\nnecessary to look into the pleadings, put forth before the trial Court by  the<br \/>\nplaintiff.  What are all stated in the plaint is as follows:<br \/>\n&#8220;jhth  g[[nuhnehl;L  vGjp  th&#8217;;fpa  rz;Kfj;jplk;  27\/7\/87  njjp  thjp nknlhth;<br \/>\nbgw;wpUg;gjhy; thjpf;F jhth bra;a chpik cz;L&#8221;\n<\/p>\n<p>But, it does not whisper about the passing of the consideration, and thus, the<br \/>\npleading lacks in that regard.  The Court is of the view that  any  amount  of<br \/>\nevidence  that was marched before the trial Court, was of no use, and thus, it<br \/>\nwould cast a doubt as to the good faith, as required by law.  Hence, both  the<br \/>\nCourts  below  were  perfectly correct in rejecting the case of the plaintiff.<br \/>\nThere is nothing to interfere in the concurrent findings, recorded by both the<br \/>\nCourts.\n<\/p>\n<p>        10.  For the foregoing reasons, this second appeal fails, and the same<br \/>\nis dismissed, confirming the judgments and decrees of  the  lower  Courts  and<br \/>\nleaving the parties to bear their costs.\n<\/p>\n<p>Index:  yes<br \/>\nInternet:  yes<\/p>\n<p>To:\n<\/p>\n<p>1.  The II Additional District Judge<br \/>\nTiruchirapalli\n<\/p>\n<p>2.  The District Munsif<br \/>\nPerambalur\n<\/p>\n<p>3.  The Record Keeper<br \/>\nV.R.  Section<br \/>\nHigh Court, Madras.\n<\/p>\n<p>nsv\/<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Madras High Court Chidambara Pathar vs K.R. Mani Asari on 1 March, 2004 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 01\/03\/2004 CORAM THE HONOURABLE MR.JUSTICE M.CHOCKALINGAM SECOND APPEAL No.885 of 1993 Chidambara Pathar .. Appellant -vs= K.R. Mani Asari .. Respondent This second appeal is preferred under Sec.100 of the Code of Civil [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,13],"tags":[],"class_list":["post-139098","post","type-post","status-publish","format-standard","hentry","category-high-court","category-madras-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Chidambara Pathar vs K.R. 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