VORUGANTI SESHIREDDI Vs. VANKA VENKATA SUBBAYYA AND ORS.

JUDGEMENT

(1.) THIS second appeal raises a question under Section 51, Negotiable Instruments Act. The first defendant is the appellant. On 23 -10 -1943 he executed a promissory note for Rs. 2500 (Ex. P -1) in favour of the fourth defendant Illuri Yallamanda Reddi and his three sons, defendants 5 and 6 and one Koti Reddi since deceased. The plaintiff sued as endorsee of this promissory note, to recover the balance of the amount due thereunder. The appellant resisted the suit on various grounds. But the only defence that is now material is that there was no proper endorsement or negotiation of the promissory note in favour of the plaintiff and that in consequence, no action is maintainable thereon This contention is based on the fact that on 17 -4 -1944 the 4th defendant alone made the endorsement (Ex. P -3) and delivered the promissory note to the plaintiff and that the other payees Koti Reddi and defendants 5 and 6 endorsed (Ex. P -4) and redelivered the promissory note to the plaintiff on 29 -12 -1945. The contention is that under Section 51, Negotiable Instruments Act where there are several payees, all of them should endorse and deliver the instrument and there having been one endorsement and delivery by the 4th defendant on 17 -4 -1944 and another by his sons on 29 -12 -1945, the requirements of the section have not been complied with.

(2.) SECTION 51, Negotiable Instruments Act runs as follows :

(3.) IN the result, the second appeal fails and is dismissed with costs. No leave.