KHAN MUHAMMAD vs MUHAMMAD ASLAM Ss — 2022 CLD 779 LAHORE-HIGH-COURT-LAHORE

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KHAN MUHAMMAD VS MUHAMMAD ASLAM Ss. 4 & 13---Promissory note---Ingredients of---Promissory note is an instrument having ingredients: (i) must be in writing; (ii) contains undertaking of payment of money; (iii) undertaking must be unconditional; (iv) sum should be determined, and (v) such instrument must be signed by the maker. Ss. 4, 13 & 118---Qanun-e-Shahadat (10 of 1984), Art. 17---Suit for recovery---Negotiable instrument, attestation of---Respondent/plaintiff alleged that the appellant borrowed certain amount from the respondent; that he signed/issued promissory note and receipt in presence of witnesses; that the appellant refused to return the said amount---Suit was decreed by Trial Court---Appellant/defendant contended that upon signatures by the witnesses, promissory note stood converted into the surety bond, therefore lost its knack of negotiable instrument; that a litigation was already pending between father of the appellant and the respondent which was also brought on record; that parties having bitter relationship could not possibly enter into the transaction involving mutual trust; that there were discrepancies in the evidence including the difference of time of lending money that normally the people do not have such a huge amount at the houses---Validity---Promissory Note was not defined in the Stamp Act and for the purposes of definition/explanation of promissory note the Stamp Act was dependent on the Negotiable Instruments Act, 1881 (Act, 1881)---Act, 1881, was not just enacted as amending statute but also to define cheques, bill of exchange and promissory notes, but to lay the whole law regarding the said instruments---Sections 4 & 13 of Negotiable Instruments Act, 1881, did not provide for any requirement of attestation by witnesses or attestation if made by witnesses having some consequences and bearing on the nature of the instrument---Not necessitating such attestation on the promissory note simply had effect that requirement of Art. 17(2)(a) of the Qanun-e-Shahadat, 1984, was not mandatory to be fulfilled---If attestation was made, it would not automatically stand converted into a Bond, which by its own nature and characteristics and purpose was distinct from promissory note---Intention of parties could also be seen as to whether the instrument was intended to be a negotiable instrument or it was just a certificate of debt or contained merely an obligation to pay or to do something upon happening or not happening of certain event---Disputed promissory note had fulfilled all requirements---Two witnesses supported the stance of respondent and also deposed that thumb impression was given on the promissory note---Documents showed that parties did not involve in direct litigation between them, who were close relatives---Appellant had denied to avail opportunity of having comparison of thumb impression--Presumption was that negotiable instrument was made/drawn for consideration; and that holder thereof was a holder in due course---Appellant though adopted the stance that the negotiable instrument/promissory note was forged one but he never reported such incident to the authorities or taken any step to initiate criminal proceedings against the respondent despite lapse of several years----Appellant also did not make any effort to get instrument cancelled on the civil side---Appeal was dismissed accordingly. Ss. 4 & 13---"Cheques", "bill of exchange" and "promissory notes"---Definitions---Scope---Definitions of the instruments contained in Negotiable Instruments Act, 1881 (Act, 1881), carried no ambiguity and were exhaustive in nature, leaving hardly any room to overstretch, spruce, narrow-down or borrow further words/explanation, besides contained therein---Said approach was further clarified from reading of S. 13(1) of the Act, 1881, which started with word 'means' instead of word 'include'---Unlike bond, promissory note was an unconditional note/written promise, signed by the maker to pay absolutely and in any eventuality, a certain sum either to, or to the order of, certain persons or the bearer of the instrument.

KHAN MUHAMMAD vs MUHAMMAD ASLAM Ss — 2022 CLD 779 LAHORE-HIGH-COURT-LAHORE

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