Court Grants Pendente Lite Interest and Costs; Dismisses Defendants' Appeal
In a significant judgment delivered by the Delhi High Court, Justice Amit Bansal ruled in favor of the plaintiff, Renu Mathur, allowing the recovery of Rs. 50 lakhs based on promissory notes and corroborative undated cheques. The court dismissed the appeal filed by the defendants, legal heirs of the late Sh. Rakesh Bahadur Mathur, challenging the decree passed by the Additional District Judge, Patiala House Courts, New Delhi.
The dispute centered around an interest-free loan of Rs. 50 lakhs extended by the plaintiff to Sh. Rakesh Mathur, substantiated by promissory notes and five undated cheques. The defendants contested the authenticity of these documents, alleging forgery and manipulation. However, the trial court had previously decreed the suit in favor of the plaintiff, awarding Rs. 50 lakhs with future interest at 12% per annum, a decision which was upheld in the current appeal.
Justice Bansal, in his judgment, reaffirmed the validity of the promissory notes, noting that they bore the signatures of the deceased and were legally binding. The court emphasized the corroborative value of the undated cheques, pointing out that the defendants failed to disprove the authenticity of the handwriting and signatures of Sh. Rakesh Mathur. The plaintiff had successfully summoned a bank witness to verify the signatures, further strengthening their case.
Despite the defendants' arguments, the court found no evidence of forgery or theft concerning the cheques and promissory notes. The judgment highlighted the principle of preponderance of probabilities, which guided the court's decision in favor of the plaintiff. Additionally, the court addressed the cross objections filed by the plaintiff, granting pendente lite interest at 9% per annum from the date of filing the suit until its decree, and awarded costs including remuneration to the Local Commissioner.
The judgment directed the release of the balance amount deposited by the defendants, along with accrued interest, to the plaintiff. This comprehensive decision marks a crucial affirmation of the evidentiary value of promissory notes and cheques in civil recovery suits, reinforcing legal precedents on the matter.
Bottom Line:
Recovery of amount based on promissory notes and corroborative cheques - Plaintiff entitled to the amount as the evidence established the genuineness of promissory notes and cheques - Defendants failed to disprove handwriting or signatures of the deceased on the documents.
Statutory provision(s): Civil Procedure Code, 1908 Section 96, Order XLI Rule 1
Renu Mathur v. Ramesh Chander Gupta, (Delhi) : Law Finder Doc id # 2845183
