Georgekutty Chacko Vs M.N Saji (Supreme Court of India)
Cash Payments Are Real Too: Cash Portion in Promissory Note Cannot Be Disbelieved- No Splitting Bank & Cash Components -Negotiable Instruments Act Presumption Saves Creditor – SC Overturns HC’s Cut in Promissory Note Recovery
The Supreme Court dealt with the issue of recovery of money pursuant to a promissory note & clarified that the cash portion of a transaction cannot be disbelieved merely for lack of separate documentary proof.
The appellant, Georgekutty Chacko, had advanced a total of ₹30.80 lakh to the respondent M.N. Saji pursuant to a duly executed promissory note. A suit for recovery was decreed by the Trial Court for ₹35,29,680/- (inclusive of interest).
On appeal, the Kerala High Court upheld the existence of the promissory note but reduced the decretal amount to ₹22 lakh, on the ground that only this much was established through bank instruments, while the balance was claimed to have been given in cash.
Appellant argued that once the promissory note was admitted & its execution was never disputed, the entire amount specified therein ought to be recoverable. The bifurcation done by the High Court was erroneous, as cash payments are common in money transactions & the respondent never alleged fraud or manipulation of the note.
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