9911796707
TMI Blog1989 (11) TMI 330X X X X Extracts X X X X X X X X Extracts X X X X ..... . No. 361 of 1977 and four in O.S. No. 362 of 1977. Defendants 1 to 3 are common. First Defendant in these two suits is the sole Defendant in O.S. No. 165 of 1978 filed by one Krishnakumar, who is the husband of the Managing Partner of the firm, which is the Plaintiff in the other two suits. In O.S. Na 361 of 1977, the claim is for Rs. 49,000 due under three pronotes, Exts. A-1 to A-3, and in O.S. No. 362 of 1977 Rs. 30,500 due under Ext. A-4 pronote is claimed. In O.S. Na 165 of 1978, the transaction is oral loan of Rs. 29,700. 2. The sole Defendant in O.S. No. 165 of 1978, who is the first Defendant in the other two suits, alone contested. He is the Managing Director of ''Yadava Steels and Allied Industries, Trichur". His content ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A-4 are materially altered documents and as such void under Section 87 of the Negotiable Instruments Act. 5. On the evidence the trial court found that "Jawahar Trading Corporation" is a business run by Krishnakumar in the name of his wife as Managing Partner and the other Defendants in the pronote suits are his friends and associates. Those findings are well supported by the evidence and do not require any interference. In the written statement the first Defendant detailed the circumstances under which the four documents were executed and said that they were never intended as pronotes and nobody else joined with him. Just like Krishnakumar, the other Defendants in O.S. Nos. 361 and 362 of 1977 also advanced amounts to the first Defendant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted. In the light of these items of evidence, there is absolutely no reason to disbelieve the first Defendant when he gave evidence as D.W. 1. 7. There are sufficient indications in Exts. A-1 to A-4 to show that Defendants 1 to 4 were not executants when first Defendant signed. New stamps were affixed subsequently. Names of Defendants 2 to 4 were inserted later and their signatures were also obtained later. Corresponding corrections are also there. These facts were elaborately discussed by the trial court and I am in full agreement. I do not propose to add volume to this judgment by discussing the items of evidence in that respect including the deposition of the first Defendant. I am adverting only to two contentions of the Appellants that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enders the same void against any one who is a party thereto at the time of making the alteration and does not consent thereto, unless it was made in order to carry out the common intention of the original parties. Addition of parties to a contract is a material alteration. Adding stamps and signatures and corrections in signatures and writings are also material alterations. Rangayya Naidu v. Sundaramurthy AIR 1943 Mad 511 relied on by the trial court, is sufficient authority for the position that failings of parties to raise specific pleas in that respect should not deter the court in considering how the law should be applied to proved facts. The principle of law in this respect embodied in Section 87 of the Negotiable instruments Act is es ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in his own name to the possession thereof and to receive or recover the amount due thereon from the parties thereto. In order to discharge the maker or acceptor payment will have to be made to the holder. That is the effect of Sections 8 and 78 of the Negotiable Instruments Act. In a case which does not fall under Section 82(c) a discharge could be given under Section 78 to the maker of the promissory note only when a payment is made to the holder thereof. A plea that the ostensible holder is not the real holder or only a benamidar is barred. Rights and liabilities of undisclosed principles are not intended to alter the well established rules as to negotiable instruments. In a suit on a negotiable instrument by the payee named therein or t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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