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Monday, October 14, 2024

 BURDEN OF PROOF UNDER SECTION 68 OF EVIDENCE ORDINANCE

EP/ HCCA/AMP/266/2013

When we consider the onus probandi (burden of proof), it lies with the Plaintiff to prove his case on balance of probabilities. The standard of proof is in a civil case is enunciated clearly in Miller v. Minister of Pensions [1947] 2 All E.R. 372. Lord Denning districted that the standard of proof regarding balance of probabilities is as follows;

“That degree is well settled. It must carry a reasonable degree of probability, not so high as is required in a criminal case. If the evidence is such that the tribunal can say: ‘we think it more probable than not’, the burden is discharged, but if the probabilities are equal it is not.”

 The standard of proof in civil or criminal litigation is the legal standard to which a party is required to prove its case. The standard determines the degree of certainty with which a fact must be proved to satisfy the Court of the fact. In civil cases the standard of proof is the balance of probabilities. This means that the Court will assess the oral, documentary and real evidence advanced by each party and decides which case is more probable. To put it another way, on the evidence, which occurrence of the event was more likely than not.

BURDEN OF PROOF  UNDER SECTION 68 ONE WITNESS IS ENOUGH

 MUTHUBANDA AND ANOTHER v. GUNARATNE 1999 3 SLR P1

 

Mr. Herath submitted that the defendant was not able to obtain the death certificate of Punchibanda a witness to deed No. 31294 to be produced at the trial. However, on the application made to this Court it was permitted to file the death certificate. He submitted that the absence of the witness Punchibanda was satisfactorily explained and that the evidence of the 2nd defendant was sufficient to prove the deed No. 31294, under section 68 of the Evidence Ordinance. He faulted the learned District Judge's finding that both attesting witnesses were required to prove the execution of the deed under section 68 of the Evidence Ordinance. He also submitted that, at the trial the execution of the deed was not challenged and not put in issue at the trial.

The deed No. 31295 was attested by two witnesses, Muthubanda the 2nd defendant's husband and one Premadasa Jayasinghe. He again faulted the learned District Judge's finding that the defendant failed to prove the two deeds No. 31294 and No. 31295 in that to wit the witnesses to each instrument was not called at the trial. Mr. Herath submitted that the authority relied on by the trial Judge in Arnolis v. Muthumenika(1) is inapplicable in that the 2 deeds in question were not challenged. The Mortgage bond referred to in that case was challenged on the basis of a forgery. The Supreme Court observed: "the plaintiff called the Notary and one of the attesting witnesses. It appears that the other attesting witness had left the district and had not been seen for some time. So, that his absence was not accounted for. The Acting District Judge of Ratnapura held that as a matter of law it was necessary to call both attesting witnesses. I am unable to agree with that statement of law.

DEED CAN BE PROVED BY THE EVIDENCE OF ONE WITNESS MUTHUBANDA AND ANOTHER v. GUNARATNE 1999 3 SLR P1

A deed can be proved by the evidence of one witness though as a matter of precaution it may be advisable in many cases to call all the witnesses. Held, that the deed was sufficiently proved. It is relevant to point out that the deeds in question were not challenged at the trial and there was no issue raised on the basis of fraud. Mr. Herath also referred to Sakar on Law of Evidence 10th edition, page 95. He submitted that the question of calling more than one witness arises according to the circumstances of the case.

 In Solicitor-General v. Awa Umma(2). T. S. Fernando, J. observed that

 "the learned trial Judge has held that the prosecution has failed to satisfy section 68 of the Evidence Ordinance. The section prohibits the use as evidence of any document required by law to be attested until one attesting witness at least has been called for the purpose of proving its execution . "

Therefore, I am inclined to accept the submission of Mr. Herath that the trial Judge erred when he held that the two instruments were not proved.

As regard the priority of the registration the plaintiff raised 2 issues 17 and 18. Mr. Gunathilake submitted that there is due registration of the deeds relied on by the plaintiff and such deeds must prevail by priority of registration. This submission was based on the fact that deed of gift No. 59287 was not revoked and had transmitted title to the plaintiff. The learned District Judge observed that the plaintiff's deeds are registered in the proper folio suggesting the inference that the defendants deeds are not. Mr. Herath submitted that the finding of the learned District Judge is erroneous. That no question of registration or prior registration does arise here and relied on section 4 (1) of the Ordinance. He submitted that immediately upon the gift being revoked by the donor the gift becomes void and of no effect and any transaction that flowed from deed of gift No. 59287 was void and no rights flow from the said deed. The question of prior registration does not arise. He referred to Banda v. Hethuhamy(3) which laid down that, "the doctrine of Caveat Emptor must certainly apply to our contracts for sale of land in the Kandyan Provinces and all purchases for valuable consideration should be duly put upon inquiry as to their vendor's title to convey". Mr. Herath submitted that once a gift becomes void after revocation in terms of section 4 (1) registration of other deeds or registration in the proper folio will not revive a deed that is void and thereafter has no right, title or interest to convey to anybody. In Appuhamy v. Holloway(4) the Supreme Court observed that the question of title had to be considered independently of the law of registration. In Appuhamy's case (supra) when Mudalihamy executed the deed of revocation 2D2 in 1904 the very foundation of title of Punchirala based on P2 was destroyed and Punchirala had no right based on that deed that he could transfer to a vendee.

The learned District Judge was in error when he held in favour of the plaintiff on the question of registration.

It is unnecessary at this stage to go into the question of prescription by the 2nd defendant since I have come to a finding that there was a valid revocation of the deed of gift No. 59287 of 10. 6. 1971 by deed No. 31294 of 24. 10. 1976 and that the 2nd defendant acquires title by deed No. 31295. Question of prescriptive possession by the 2nd defendant, therefore, does not arise as regards prescriptive rights of the plaintiff. The trial Judge has come to a finding that the plaintiff has not been in possession. Even if the plaintiff was in possession the adverse possession would commence in 1976 when the deed of gift was revoked. Since action has been instituted in 1983 the question of prescription does not arise.

I, accordingly, set aside the judgment of the learned District Judge and enter judgment for the defendants as prayed for and with costs fixed at Rs. 2,100.

ARNOLIS V. MUTU MENIKA, 2 NLR 199

EVIDENCE-PROOF OF DEED-NUMBER OF WITNESSES TO BE CALLED.

 

In order to prove the execution of a mortgage bond attested by a notary and two witnesses it is not necessary that the notary and both the attesting witnesses should be called. It may be proved by the evidence of only one witness, although as a matter of precaution it may be advisable in many cases to call all the attesting witnesses.

THIS was an appeal by the plaintiff from a judgment of the District Judge dismissing his claim with costs. The action was one on a mortgage bond, which the defendant impeached as a forgery. The plaintiff called the notary and one of the two attesting witnesses to prove the bond. The District Judge held that as a matter of law it was necessary to call both the attesting witnesses. He also expressed dissatisfaction with the evidence of the witnesses called, and dismissed the action with costs. In appeal, Dornhorst, for appellant; De Saram, for respondent.

October 22, 1896. Bowser, C. J. -

The plaintiff in this case sues on a bond dated the 25th March, 1886.The bond was given by a Kandyan married woman, and purported to mortgage certain landed property to secure a sum of two hundred and fifty rupees and interest. The bond was executed before a notary at Balangoda. The defendant on being sued set up a defence that the bond was a forgery.The plaintiff called the notary and one of the attesting witnesses. It appears that the other attesting witness had left the district and had not been seen for some time, so that his absence was accounted for, Mr. Drieberg, the Acting District Judge of Ratnapura, held that as a matter of law it was necessary to call both the attesting witnesses. I am unable to agree with that statement of the law. A deed can be proved by the evidence of one witness, though as a matter of precaution it may be advisable in many cases to call all the witnesses.[His Lordship here discussed the facts of the case, and held that the deed was sufficiently proved, and allowed the appeal. ]

Lawrie, J. -

In my opinion there is sufficient proof of the execution by the defendant of the bond sued on. The notary and one of the attesting witnesses have given evidence that the defendant did put her mark as mortgagor on the bond.

How to prove a deed

SC APPEAL NO: SC/APPEAL/56/2020 Decided on: 20.05.2022  Mahinda Samayawardhena, J.

 

This Court granted leave to appeal to the plaintiff on the following two questions of law:

(a) Did the learned Judges of the High Court err in law in concluding that the deed bearing No. 1986 does not fulfill the due requirements of section 2 of the Prevention of Frauds Ordinance?

(b) Did the learned Judges of the High Court misdirect themselves in evaluating the evidence and concluding that the attesting witnesses have not given evidence when the record bears out that one attesting witness had in fact given evidence?

The short question to be decided in this appeal is whether deed No. 1986 has been properly executed in terms of section 2 of the Prevention of Frauds Ordinance, No. 7 of 1840, as amended. The said section in sofar as relevant to the present purposes reads as follows:

No sale, purchase, transfer, assignment, or mortgage of land or other immovable property…shall be of force or avail in law unless the same shall be in writing and signed by the party making the same, or by some person lawfully authorized by him or her in the presence of a licensed notary public and two or more witnesses present at the same time, and unless the execution of such writing, deed, or instrument be duly attested by such notary and witnesses.

To prove due execution of a deed, this section requires proof of four matters:

MAIN ELEMENTS OF A DEED SC APPEAL NO: SC/APPEAL/56/2020 Decided on: 20.05.2022  Mahinda Samayawardhena, J.

 

(a) the deed was signed by the executant

(b) it was signed in the presence of a licensed notary public and two or more witnesses

 (c) the notary public and the witnesses were present at the same time

(d) the execution of the deed was duly attested by the notary and the witnesses

It may be relevant to note that under section 2 of the Prevention of Frauds Ordinance, the document shall be signed by the executant in the presence of the notary and the two witnesses present at the same time. However, the section does not expressly state that the document shall also be signed by the two witnesses and the notary in the presence of the executant at the same time.

Execution and attestation are two different things: the former by the maker/executant and the latter by the notary and the witnesses.

Attestation is two-fold: due attestation by the notary and the witnesses as stated in section 2 of the Prevention of Frauds Ordinance, and formal attestation by the notary as stated in section 31 of the Notaries Ordinance, No. 1 of 1907, as amended.

MERE NON OBSERVANCE OF RULES BY NOTARY DO NOT INVALIDATE DEED SC APPEAL NO: SC/APPEAL/56/2020 DECIDED ON: 20.05.2022  MAHINDA SAMAYAWARDHENA, J.

 

In the execution of deeds, the requirements under section 2 of the Prevention of Frauds Ordinance are mandatory, and non-compliance renders a deed invalid. Conversely, non-compliance with the Rules made for notaries set out in section 31 of the Notaries Ordinance does not invalidate a deed as expressly provided for in section 33 of the Notaries Ordinance, which reads as follows:

No instrument shall be deemed to be invalid by reason only of the failure of any notary to observe any provision of any rule set out in section 31 in respect of any matter of form:

Provided that nothing hereinbefore contained shall be deemed to give validity to any instrument which may be invalid by reason of non-compliance with the provisions of any other written law.

(Weeraratne v. Ranmenike (1919) 21 NLR 286, Asliya Umma v. Thingal Mohamed [1999] 2 Sri LR 152, Wijeyaratne v. Somawathie [2002] 1 Sri LR 93, Pingamage v. Pingamage [2005] 2 Sri LR 370)

What constitutes the attestation and the form of attestation are set out in sections 31(20) and 31(21) of the Notaries Ordinance; this is the formal attestation appended by the notary at the end of the deed. This is different from attesting a deed by the notary and witnesses as contemplated in section 2 of the Prevention of Frauds Ordinance. If the formal attestation of a deed is defective, the notary can be prosecuted under the Notaries Ordinance, but the deed’s validity is unaffected.

 

NOTARY HAS INSERTED A FALSE OR WRONG DATE OF ITS EXECUTION DOES NOT RENDER THE DEED VOID. SC APPEAL NO: SC/APPEAL/56/2020 DECIDED ON: 20.05.2022  MAHINDA SAMAYAWARDHENA, J.

 

In Thiyagarasa v. Arunodayam [1987] 2 Sri LR 184, the deed on its face had the date 14th January 1973 as the date of execution. According to the plaintiff, the actual date of execution was 7th October 1972. The District Court held that the deed was not properly executed. On appeal, G.P.S. De Silva J. (later C.J.) held at 188-189:

Once it is established that the requirements of section 2 of the Prevention of Frauds Ordinance relating to the execution of the deed have been complied with, the mere fact that the notary has inserted a false or wrong date of its execution does not render the deed void. The lapse on the part of the notary does not touch the validity of the deed but may render the notary liable to be prosecuted for contravention of the provisions of the Notaries Ordinance. This seems reasonable and just for the parties to the transaction have no control over the acts of the notary who is a professional man. I am therefore of the opinion that P3 is valid and effective to transfer the legal title to the property and is not bad for want of due execution.

The Court quoted with approval the following statement of law found in The Conveyancer and Property Lawyer (1948) Vol. 1 Part 1 by E.R.S.R. Coomaraswamy at page 94:

The formal attestation by the notary is not part of the deed but it is the duty of the notary to append it. What is compulsory is compliance with the provisions of section 2 of the Prevention of Frauds Ordinance; non-compliance with the other provisions of the Prevention of Frauds Ordinance or the Notaries Ordinance does not ipso facto make the deed invalid.

It was held in Weeraratne v. Ranmenike (1919) 21 NLR 286 that the requirement under section 16 (now section 15) of the Prevention of Frauds Ordinance that a deed shall be executed in duplicate was only a duty imposed on the notary and was not intended to invalidate the deed in the event of non-compliance. De Sampayo J. held at 287-288:

It is clear to my mind that this clause merely imposed a duty on the notary, and was not intended to invalidate deeds where the notary might have failed to observe the direction therein contained. It is well settled that a notary’s failure to observe his duties with regard to formalities which are not essential to due execution, so far as the parties are concerned, does not vitiate a deed. For instance, the absence of the attestation clause does not render a deed invalid. D.C. Kandy, 19,866 (Austin’s Rep. 113); D.C. Negombo, 574 (Grenier (1874), p.39). Similarly, I think the failure on the part of the notary to have a deed executed in duplicate does not affect its operation as a deed. The case D.C. Kandy, 22.401 (Austin’s Rep. 139) is an authority on this point.

I therefore think that the decision of the Commissioner in this case is erroneous.

WHAT IS ATTESTATION SC APPEAL NO: SC/APPEAL/56/2020 DECIDED ON: 20.05.2022  MAHINDA SAMAYAWARDHENA, J.

 Let me now turn to the word “attest” as contemplated in section 2 of the Prevention of Frauds Ordinance. Following the ordinary dictionary meaning of “attest” which is “to bear witness to”, a person who sees the document signed by the executant is a witness to it; if he subscribes as a witness, he becomes an attesting witness. Black’s Law Dictionary (11th edition) defines “attesting witness” as “someone who vouches for the authenticity of another’s signature by signing an instrument that the other has signed.”

A word of caution: although section 2 of the Prevention of Frauds Ordinance does not require the witnesses and the notary to attest the deed before the executant, this section requires the execution of the deed to be “duly attested” by the notary and the two witnesses.

The word “duly” here is not without significance. How is a deed considered to be duly attested? In this context, section 2 of the Prevention of Frauds Ordinance needs to be read with section 31(12) of the Notaries Ordinance which runs as follows:

[The notary] shall not authenticate or attest any deed or instrument unless the person executing the same and the witnesses shall have signed the same in his presence and in the presence of one another, and unless he shall have signed the same in the presence of the executant and of the attesting witnesses.

Although compliance with the Rules contained in section 31 is not mandatory as explained above, it was held in Emalia Fernando v. Caroline Fernando (1958) 59 NLR 341 that an instrument which is required by section 2 of the Prevention of Frauds Ordinance to be notarialy attested must be signed by the notary and the witnesses at the same time as the maker and in his presence. This conclusion was reached giving due regard to the expression “duly attested” found in section 2 of the Prevention of Frauds Ordinance. I am in complete agreement with this interpretation, for otherwise the Prevention of Frauds Ordinance which was enacted to prevent fraud can be misused to cover fraud on the basis that section 2 of the Prevention of Frauds Ordinance does not require the notary and witnesses to sign the deed before the executant in the presence of one another. At page 344 Basnayake C.J. held:

Learned counsel for the appellant contended that the requirement of the Notaries Ordinance in regard to the attestation of documents is not relevant to a consideration of the true meaning of the section. I am unable to agree that the provisions of the Notaries Ordinance are irrelevant to a consideration of the meaning of section 2 of the Prevention of Frauds Ordinance. I think in giving effect to the word “duly” we should take into account provisions of law which regulate the execution of documents required to be notarialy attested.

Section 30(12) of the Notaries Ordinance provides that a notary “shall not authenticate or attest any deed or instrument unless the person executing the same and the witnesses shall have signed the same in his presence and in the presence of one another, and unless he shall have signed the same in the presence of the executant and of the attesting witnesses.”

 Section 30(20) requires the notary to state in his attestation that the deed was signed by the party making it and the witnesses in his presence and in the presence of one another. The view I have expressed above is in accord with the decision of this Court in the case of Punchi Baba v. Ekanayake (4 S.C. C. 119), in which this Court expressed the view that section 2 of the Prevention of Frauds Ordinance required that the notary and the witnesses should sign in the presence of the maker and at the same time and that a deed not so signed was not valid.

P6 is the original title deed of the plaintiff and V1 is the photocopy of that deed tendered by the plaintiff with the plaint in support of an application for an interim injunction. The contention of the defendant, which was accepted by the High Court, is that: V1 did not contain the signature of the second attesting witness; the signature of the second attesting witness appearing in P6 had been placed after the execution of the deed; therefore the plaintiff’s title deed had not been duly executed.

NO ISSUE IS BEEN RAISED  ON DUE EXECUTION AT TRIAL / NO OBJECTION RAISED AT CLOSE SC APPEAL NO: SC/APPEAL/56/2020 DECIDED ON: 20.05.2022  MAHINDA SAMAYAWARDHENA, J.

It is significant to note that the defendant did not raise an issue on due execution of the deed either at the beginning of the trial or during the course of the trial. When the original deed P6 was marked through the plaintiff, the defendant moved that it be marked subject to proof. When the plaintiff closed his case reading in evidence the marked documents including P6, the defendant did not maintain that it had not been proved, thereby indirectly conceding that the objection was no longer a live objection.

HOW CAN A DEED BE PROVED? SC APPEAL NO: SC/APPEAL/56/2020 DECIDED ON: 20.05.2022  MAHINDA SAMAYAWARDHENA, J.

Section 68 of the Evidence Ordinance reads as follows:

If a document is required by law to be attested, it shall not be used as evidence until one attesting witness at least has been called for the purpose of proving its execution, if there be an attesting witness alive, and subject to the process of the court and capable of giving evidence.

The plaintiff called as witnesses the notary and the first attesting witness to the deed, and they confirmed that the donor, the donee, the first attesting witness, the second attesting witness and the notary were all present at the same time and signed the deed in that order. When they were confronted with V1, they stated that they saw V1 for the first time in the witness box.

THE FOLLOWING FINDING OF THE HIGH COURT IS NOT CORRECT: SC APPEAL NO: SC/APPEAL/56/2020 DECIDED ON: 20.05.2022  MAHINDA SAMAYAWARDHENA, J.

When there is a dispute or challenging a document with regard to the due execution, the notary alone is not sufficient to give evidence. At least one attesting witness should give evidence. In this case attesting witnesses have not given evidence and no explanation is given for it. Although the High Court came to the finding that no attesting witness was called to give evidence on the execution of P6 and no explanation was provided for such failure, in fact, two attesting witnesses were called to prove P6: one was the notary and the other was the first attesting witness. There is no dispute that Anoma Ranaweera, the wife of the donee who signed as the first witness to the deed and whose evidence has been overlooked by the High Court, is an attesting witness. The decision of the High Court would have been different if the Court had drawn its attention to the evidence of this attesting witness.

The notary is as much an attesting witness as the two witnesses themselves within the meaning of section 68 of the Evidence Ordinance. (Wijegoonetileke v. Wijegoonetileke [1956] 60 NLR 560, The Solicitor General v. Ahamadulebbe Ava Umma (1968) 71 NLR 512 at 515-516, Thiyagarasa v. Arunodayam [1987] 2 Sri LR 184, Wijewardena v. Ellawala [1991] 2 Sri LR 14 at 35)

 

In Marian v. Jesuthasan (1956) 59 NLR 348 it was held:

Where a deed executed before a notary is sought to be proved, the notary can be regarded as an attesting witness within the meaning of section 68 of the Evidence Ordinance provided only that he knew the executant personally and can testify to the fact that the signature on the deed is the signature of the executant.

In Marian’s case, the execution of the deed by the executant was in issue but only the notary who did not personally know the executant gave evidence to prove the deed. It is in that context the Court held that the notary was not an attesting witness. This should not be understood to mean that a notary can never be an attesting witness unless he knows the executant personally. For instance, in the case at hand, whether or not the notary knew the executant is beside the point as the deed is challenged on the sole ground that the second attesting witness did not sign the deed. Even if the notary did not know the executant personally, he can still be an attesting witness but proof of execution of the deed is incomplete on his evidence alone.

If the notary does not know the executant, he must know the witnesses and the witnesses must know the executant. In that eventuality, at least one of the two attesting witnesses needs to be called to prove due execution.

Sections 31(9) and 31(10) of the Notaries Ordinance are relevant in this regard. 31(9) He shall not authenticate or attest any deed or instrument unless the person executing the same be known to him or to at least two of the attesting witnesses thereto; and in the latter case, he shall satisfy himself, before accepting them as witnesses, that they are persons of good repute and that they are well acquainted with the executant and know his proper name, occupation, and residence, and the witnesses shall sign a declaration at the foot of the deed or instrument that they are well acquainted with the executant and know his proper name, occupation, and residence.

31(10) He shall not authenticate or attest any deed or instrument in any case in which both the person executing the same and the attesting witnesses thereto are unknown to him.

 

To sum up, the notary is a competent witness to prove attestation, SC APPEAL NO: SC/APPEAL/56/2020 Decided on: 20.05.2022  Mahinda Samayawardhena, J.

To sum up, the notary is a competent witness to prove attestation, and if he knows the executant, he is a competent witness to prove attestation and execution, both of which are the sine qua non of proving due execution. This was lucidly explained by T.S. Fernando J. in The Solicitor General v. Ahamadulebbe Ava Umma (1968) 71 NLR 512 at 516:

The object of calling the witness is to prove the execution of the document. Proof of the execution of the documents mentioned in section 2 of No. 7 of 1840 means proof of the identity of the person who signed as maker and proof that the document was signed in the presence of a notary and two or more witnesses present at the same time who attested the execution. If the notary knew the person signing as maker, he is competent equally with either of the attesting witnesses to prove all that the law requires in section 68 – if he did not know that person then he is not capable of proving the identity as pointed out in Ramen Chetty v. Assen Naina (1909) 1 Curr. L.R. 257, and in such a case it would be necessary to call one of the other attesting witnesses for proving the identity of the person. It seems to me that it is for this reason that it is required in section 69 that there must be proof not only that “the attestation of one attesting witness at least is in his handwriting” but also “that the signature of the person executing the document is in the handwriting of that person.” If the notary knew the person making the instrument, he is quite competent to prove both facts – if he did not know the person then there should be other evidence.

In the instant case the notary stated in his evidence that he knew the executant and the other witnesses personally as the donee was his classmate, the donor is the donee’s aunt, the first witness is the donee’s wife, and the second witness is his (the notary’s) clerk. The question in this case is not whether the executant signed the deed but whether the second witness was present (together with the others) at the time of the deed being signed by the executant and duly attested.

This in my view has been proved by marking the original deed as P6 and calling the notary and the first witness to the deed as witnesses in the plaintiff’s case. The High Court, without considering the aforementioned evidence, relied on a photocopy of the deed (which had been tendered by the plaintiff with the plaint for another purpose) to reject the original deed. The High Court at page 8 of the impugned judgment states “even though it is a true copy, it has the Land Registry seal and the inference the court can draw is that the document marked P6 has been sent to the Land Registry without the signature of one attesting witness.”

THE STANDARD OF PROOF OF DUE EXECUTION OF A DEED IS ON A BALANCE OF PROBABILITIES. SC APPEAL NO: SC/APPEAL/56/2020 DECIDED ON: 20.05.2022  MAHINDA SAMAYAWARDHENA, J.

The standard of proof of due execution of a deed is on a balance of probabilities. It is in my view unjust on the part of the appellate Court to hold against the plaintiff on “inferences” when there was no issue raised in the District Court on the due execution of the deed, when P6 was not objected to at the closure of the plaintiff’s case as a deed which had not been proved, when the deed was proved by calling two attesting witnesses, and when the defendant or the District Court did not insist that the plaintiff produce the duplicate and/or protocol of the deed to further verify the matter.

W]HEN IT IS ALLEGED THAT A PERSON SIGNED A BLANK SHEET OF PAPER SC APPEAL NO: SC/APPEAL/56/2020 DECIDED ON: 20.05.2022  MAHINDA SAMAYAWARDHENA, J.

The case of Baronchy Appu v. Poidohamy (1901) 2 Brown’s Reports 221 relied upon by the High Court to say that in addition to the notary another witness should have been called has no applicability to the facts of the instant case. The headnote of this case reads as follows:

[W]hen it is alleged that a person signed a blank sheet of paper which was subsequently filled up in the form of a deed and impeached as fraudulent by such person, the execution of such document ought to be proved, not by calling the notary who attested it, but by calling at least one of the witnesses thereto.

The statement of law enunciated in the above case is correct on the unique facts of that case where the deed was challenged on the basis that the notary obtained the signatures on blank papers. The challenge in the instant case is different and, in any event, in the instant case, the notary and another attesting witness have given evidence on due execution.

The ratio decidendi in a decision must be understood in light of the unique facts and circumstances of that particular case. Unless the two situations are similar, judicial precedents need not be mechanically applied merely because the subject area is the same.

Moreover, the course of action adopted by the High Court is against the basic principles of proof of documents as envisaged in the Evidence Ordinance. Documents must be proved by primary evidence except in the limited instances where secondary evidence is permitted: sections 64 and 65 of the Evidence Ordinance, section 162 of the Civil Procedure Code. It is not possible to defeat primary evidence by secondary evidence (other than in exceptional situations), although vice versa is possible.

For the aforesaid reasons, I answer the two questions of law in the affirmative. The judgment of the High Court of Civil Appeal is set aside and the judgment of the District Court is restored. The appeal is allowed with costs both here and in the Court below.

SC APPEAL 164/2012 Decided on: 25.07.2022 L.T.B. Dehideniya, J.

The Court granted leave to appeal on the following

questions of law;

1) Did the learned Judges of the High court err in law in holding that the Deeds P1 and P2 have not been proved without giving due weight to the well-established principle reiterated by the Supreme Court and the Court of Appeal in Balapitiya Gunananda Thero v. Talalle Meththananda Thero (1997) 2 Sri L.R 101 and Sri Lanka Ports Authority And Another v Jugolinija- Boal East (1981) 1 Sri L.R 18 that if no objection is taken to receive in evidence at the close of a party’s case a document which was earlier marked subject to proof then the said document would be considered as evidence before court for all purpose?

 

2) Did the learned Judges of the High Court err in law in holding that the Plaintiff has failed to prove the document P1 and P2 in terms of Section 68 and 69 of the Evidence Ordinance without giving any weight to the other relevant provisions of the Evidence Ordinance, particularly in view of the fact that the document P3, a deed attested by the same Notary attesting the document P1, and admitted in evidence without being marked subject to proof, was before court?

This being a rei vindicatio action the plaintiff has to establish his title. Until the title is established the defendant need not to prove anything. Once the plaintiff proves title, the burden shifts on to the  defendant to show that he has independent right in the form of prescription as claimed by him. His Lordship Justice Saleem Marsoof PC in the case of Jamaldeen Abdul Latheef V. Abdul Majeed Mohamed Mansoor And Another [2010] 2 Sri L.R 333 considering a long line of cases

held that;

“In Dharmadasa v. Jayasena(12) De Silva, C.J/. equated an action for declaration of title with the rei vindicatio action, and at 330 of his judgement quoted with approval the dictum of Heart, J., in Wanigaratne v. Juwanis Appuhamy (13),for the proposition that the burden is on the plaintiff in a rei vindicatio action to clearly establish his title to the corpus, echoing the following words of Withers, J., in the old case of Allis Appu v. Endis Hamy (supra) at 93-

In my opinion, if the plaintiff is not entitled to rei vindicate his property, he is not entitled to a declaration of title... If he cannot compel restoration, which is the object of a rei vindicatio, I do not see how he can have a declaration of title. I can find no authority for splitting this action in this way in the Roman-Dutch Law books, or decisions of court governed by the Roman-Dutch Law. As Ranasinghe, J., pointed out in Jinawathie v. Emalin Perera (14) at 142, a plaintiff to a rei vindicatio action "can and must succeed only on the strength of his own title, and not

upon the weakness of the defence." In Wanigaratne v. Juwanis Appuhamy, (supra) at page 168, Heart, J., has stressed that

 "the defendant in a rei vindicatio action need not prove anything, still less his own title." Accordingly, the burden is on the Respondents to this appeal to establish their title to the land described in the schedule to their petition …”

At the trial for the Appellant only the Appellant and the surveyor gave evidence. The title deed of the appellant was marked as P1 and it was marked subject to proof. Appellant did not call any witness to prove the execution of P1. At the closer of the evidence the Appellant read P1 in evidence and the Respondent did not object to the document.

The issue in the instant appeal is whether the P1 can be used as evidence. The Appellant has not called any witness to prove the execution of P1. Since the defendants have not objected to the document marked P1 at the closer of Appellant case the Counsel argue that the P1 becomes evidence as per the Judgement in Sri Lanka Ports Authority And Another v Jugolinija- Boal East

(1981) 1 Sri L.R 18. In the said case at p. 23-24 Samarakoon CJ, held that;

“When P1 was marked during the trial objection was taken “as the author of P1 has not been called”. I take it, what was meant was, that P1 be rejected unless the author was called to prove the document. Counsel for the respondent closed his case leading in evidence P1 and P2. There was no objection to this by counsel for the appellants who then proceeded to lead his evidence. If no objection is taken when at the close of a case documents are read in evidence they are evidence for all purposes of the law”.

This Judgement was followed in Balapitiya Gunananda Thero v. Talalle Meththananda Thero (1997) 2 Sri L.R 101. Where at p. 105 G. P. S. De Silva CJ, held that;

“...however, was marked in evidence subject to proof and the District Court held that the document was not proved, although P5 was read in evidence at the close of the plaintiff’s case without objection. This finding of the District Court was reserved by the Court of Appeal on the basis of the decision in Sri Lanka Ports Authority And Another v Jugolinija Boal East. In that case when P1 was marked in the course of the trial objection was taken but when the case for the plaintiff was closed reading in evidence P1, no objection was taken by the opposing counsel”.

Section 68 of the Evidence Ordinance provides that a document which is required to be attested shall not be used in evidence until at least one attesting witness is called to give evidence.

The Section 68 read thus;

“If a document is required by law to be attested, it shall not be used as evidence until one attesting witness at least has been called for the purpose of proving its execution, if there be an attesting witness alive, and subject to process of the court and capable of giving evidence”.

In Wijegoonatilleke v. Wijegoonatilleke 60 NLR 560 Basnayaka CJ held that, “In our opinion a Notary who attests a deed is an attesting witness within the meaning of that expression in section 68 and 69 of the Evidence Ordinance”. If the notary knows the executer the notary also can be witnesses. Neither of them were called as witnesses and no reason was given for not calling either.

Under these circumstances whether the deed can be accepted as evidence is the issue. As Tambiah J explained in Jayasinghe v. Samarawickrema (1982) 1 Sri. L.R 349 at p. 359 citing

Sarkar’s Law of Evidence, “Section 68 of the Evidence Ordinance lays down that documents required by law to be attested shall not be used as evidence unless at least one attesting witness is called to prove its execution. If he is alive and subject to process of the Court. ‘This is not the same thing as saying that a document required to be attested by more than one witness shall be proved by the evidence of only one witness. S. 68 only lays down the mode of proof and not the quantum

of evidence required.

 

 

More than one attesting witness may be necessary to prove a document according to the circumstances of a case’ (Sarkar’s Law of Evidence, 10th Edn. P. 591)”. His Lordship Justice Sisira De Abrew with the agreement of myself and Justice Padmam Surasena, considered the decisions of the said Sri Lanka Port Authority And Another v Jugolinija- Boal East (1981) and Balapitiya Gunananda Thero v. Tallalle Meththananda Thero (1997) 2 Sri L.R 101 cases and several other relevant cases and held in the case of Dadallage Anil Shantha Samarasinghe Vs Dadallage Mervin Silva SC Appeal 45/2010 S/C Minute dated 11.6.2019 that;

“Considering all the above matters, I hold that when a document which is required to be proved in accordance with the procedure laid down in section 68 of the Evidence Ordinance is produced in evidence subject to proof but not objected to at the close of the case of the party which produced it, such a document cannot be used as evidence by courts if it is not proved in accordance with the procedure laid down in section 68 of the Evidence Ordinance. I further hold that failure on the part of a party to object to a document during the trial does not permit court to use the document as evidence if the document which should be proved in accordance with the procedure laid down in section 68 of the Evidence Ordinance has not been proved.

I would like to note that the acts performed or not performed by parties in the course of a trial do not remove the rules governing the proof of documents”.

As mentioned above, if the witness is not called cannot be considered as evidence. In the case of Amarasinghe Arachchige Don Dharmarathna v. Dodamgodage Premadasa and Others SC Appeal No.158/2013, Decided on: 12th October 2016, Prasanna Jayewardene, PC, J, has applied the same principle. His Lordship noted that;

“Our Courts have consistently taken the view that, other than in instances where a

notarially attested Deed is admitted by the opposing party or is produced in evidence

without objection or requirements of proof, the requirements of Section 68 of the Evidence Ordinance are imperative and that Deed will not be considered in evidence unless the testimony of, at least, one attesting witness has been led.

Thus, in Bandaiya v. Ungu [15 NLR 263]. Lascelles CJ described the requirements of Section 68 of the Evidence Ordinance as a “wholesome rule” and held that, a notarially attested Deed shall not be used as evidence until one attesting witness at least has been call for the purpose of proving its execution, if there be an attesting witness alive, capable of giving evidence and subject to the process of the Court. [Emphasis is added]”

Section 31(9) of the Notaries Ordinance reads as follows, “He shall not authenticate or attest any deed or instrument unless the person executing the same be known to him or to at least two of the attesting witnesses thereto...”

E.R.S.R.Coomaraswamy in The Law of Evidence Vol 2 Book 1 at page 108 explains the object of calling the witness. He says “In Solicitor General vs. Ava Umma 71 NLR 512 at 515-516” T.S. Fernando J. said “The object of calling the witness is to prove the execution of the document. Proof of the execution of the documents mentioned in Section 2 of No. 7 of 1940 (Prevention of Frauds

Ordinance) means proof of the identity of the person who signed as maker and proof that the document was signed in the presence of a notary and two or more witnesses present at the same time who attested the execution.”

Coomaraswamy further say thus;

“Stephen says that the rule in Section 68 is probably the most ancient, and is, as far as it extends, the most inflexible of all the rules of evidence. As Lord Ellenborough says in R. vs. Harringworth

the rule … is universal that you must first call the subscribing witness; and it is not to varied in each particular case by trying whether, in its application, it may not be productive of some inconvenience, for then there would be no such thing as a general rule.”

Coomaraswami in the same book 106 states that

“if the witness is alive the subject to the process of the court and capable of giving evidence a witnesses shall be called. If further states that if one attesting witness, satisfying the three requirements set out above, can be called, he must be called.

The omission to call such a witness, where execution is denied or not admitted, is fatal to the admissibility of the document.”

 

In the instant case the title Deed marked P1 was presented in evidence subject to proof. It means that the defendant is not admitting the title Deed of the Appellant. Since this is a Deed attested by a Notary Public in front of two attesting witnesses Section 68 of the Evidence Ordinance comes into operation. It becomes a necessary to call at least one of the attesting witness to prove the execution. The Appellant has failed to call any of such witness. Therefore the Deed marked P1 was not proved and therefore it cannot be considered as evidence. If Appellant has failed to establish

his title in a rei vindicatio action, he is not entitle to any relief. Not challenging the document marked P3 will not establish the execution of P1.

 

Case No. C. A. 261/2000(F) Decided on: 09.08.2019 Janak De Silva J.

The next question is whether the Defendant has established his title to the land claimed by him. He relied on deed no. 2155 dated 13.03.1973 (V.2) attested by F.S.V. De Silva, Notary Public. Section 68 of the Evidence Ordinance reads:

"If a document is required by law to be attested, it shall not be used as evidence until one attesting witness at least has been called for the purpose of proving its execution, if there be an attesting witness alive, and subject to the process of the court and capable of giving evidence."

In this case, F.S.V. De Silva, Notary Public gave evidence on the execution of deed no. 2155 dated 13.03.1973 (V.2). One of the attesting witnesses thereto S.J. Herman Gunawardena also testified.

They both testified that Stanley Jayawardena signed the deed in front of them. In these circumstances, the learned Additional District Judge was correct in concluding that the execution of deed no. 2155 dated 13.03.1973 (V.2) has been proved.

On the contrary, the deed relied on by the Plaintiff no. 1879 dated 04.02.1970 (P.1) attested by T.D. Samson Silva Notary Public relates to a smaller portion of a larger extent of land the identity of which the Plaintiff has failed to establish. It is also a conditional transfer and as the learned Additional District Judge points out the Plaintiff has failed to establish whether the said conditions have been fulfilled. The failure to do so results in the Plaintiff failing to establish the requisites under Roman-Dutch law to prove her ownership. Willie's Principles of South African Law [Hutchinson, Van Heerden and Der Merwe (eds), 8th Ed. Third Impression, page 270] explains that ownership is a composite right consisting of a conglomeration of abilities and states that the composite right of an absolute owner of a thing consists of right (i) to possess it (ii) to use and enjoy it (iii) to destroy it and (iv) to alienate it.

Maarsdorp [The Institutes of Cape Low, Book II at p.31 (1903)] states that the rights of ownership """. are comprised under three heads, namely, (i) the right of possession, ownership having indeed been defined by some as consisting in the rights to recover lost possession; (2) the right of usufruct, that is the right of use and enjoyment; and (3) the right to disposition." Given the divergent views as to the different rights that make up the concept of ownership, it is important to ascertain what are the rights that a person should enjoy over a corporeal thing to be declared as its owner. Maarsdorp (supra) provides an answer to this question by reference to the rights of possession, enjoyment and disposition and states as follows:

"these three factors are all essential to the idea of ownership but need not all be present in an equal degree at one and the same time. Thus, though there need not be actual use and enjoyment present in every case, the right of alienation, coupled with the legal means

of effecting such alienation, is at all times necessary in order to constitute valid ownership: and perhaps a more correct definition of ownership would be that it is the exclusive right of disposing of a corporeal thing combined with the legal means of alienating the same and coupled with the right to claim the possession and enjoyment thereof."

Professor Max Radin, an authority on Roman Law, in Fundamental Cancepts of the Raman Law [California Law Review Vol, 13 Issue 3 page 212] states that "".especially the power of transfer, are legally and popularly associated with the idea of dominium as fundamental parts of it."

The Privy Council in Attarney General v. Herath (62 N.L.R. 145) adopted part of Maarsdorp's formulation and held that the rights of an owner under the general law of Ceylon are comprised under three heads, namely,

(1) the right of possession and the right to recover possession;

(2) the right of use and enjoyment; and

(3) the right to alienate and that these three factors are all essential to the idea of ownership but need not all be present in an equal degree at one and the same time. (emphasis added)

One of the conditions in deed no. 1879 dated 04.02.1970 (P.1) is that the property must be transferred back to Stanley Jayawardena upon repayment of the money borrowed by him. Clearly the right of the Plaintiff to transfer the corpus to a third party was limited. There is also evidence that the Defendant instituted action bearing no. 5584/ZL to evict one Alikutti from premises no. 110 which is reflected in plan no. 3577 (V.1) whereas the said assessment number is not shown on plan no. 873 (P.2) relied on by the Plaintiff.

This being a rei vindicatio action it was a paramount duty on the part of the Plaintiff to establish correct boundaries in order to identify the land in dispute [Peeris v. Savunhamy (54 N.L.R. 207)]. There is a greater and heavy burden on a plaintiff in a rei vindicatio action to prove not only that he has dominium to the land in dispute but also the specific precise and definite boundaries when claiming a declaration of title [Abeykoon Hamine v. Appuhamy (52 N.L.R. 49)]. To succeed in an

action rei vindicatio, the owner must prove on a balance of probabilities, not only his or her ownership in the property, but also that the property exists and is clearly identifiable. The identity of the land is fundamental for the purpose of attributing ownership, and for ordering ejectment [Latheef v. Mansaor and anather (2010) 2 Sri.L.R. 333]. In a vindicatory action it is necessary to establish the identity of the corpus in a clear and unambiguous manner and the action must fail upon the failure to do so [Fernando v. Somasiri (2012 B.L.R. 121)J.

ASLIYA UMMA v. THINGAL MOHAMED 1999 - Volume 2 ,Page No - 152

Vindicatory action - Claim for cancellation of ''fraudulent'' deeds - Proof of execution of the plaintiff's deed - section 68 of the Evidence Ordinance - The legal effect of the failure by the Notary to observe statutory provisions applicable to the extension of a deed - Sections 31 and 33 of the Notaries Ordinance.

One Abdul Gafoor the clerk to the Notary Sandrasegara in whose handwriting the deed of revocation was prepared and who signed it as an attesting witness and also knew the parties well was called as a witness. In the course of his testimony he said that it was the practice of Notary Sandrasegara to get him to first write the protocol in full and obtain the signatures of the parties to the fully written protocol and the other two copies in blank.

The plaintiff alleged that the 1st to the 3rd defendants acting collusively influenced Notary Sandrasegara to after the date in the deed of revocation to read as 19.6.1969. The District Judge gave judgment for the plaintiff.

 

Held:

1. The question of due execution of the deed of revocation did not arise at the trial. In any event at the time of the trial the Notary was dead and the execution of the deed was proved in terms of section 68 of the Evidence Ordinance by calling Gafoor.

2. There was no issue raised at the trial on the question of the 1st defendant's consent to the deed of revocation. In any event the evidence of the plaintiff and Gafoor as well as a document signed by the 1st defendant before the Assistant Commissioner of Agrarian Services agreeing to enter the plaintiff's name in the paddy lands register as the owner of the land in dispute established her consent to the revocation.

3. The failure of the Notary to observe the provisions of section 31 of the Notaries Ordinance in executing the deed of revocation did not make it invalid; for in terms of section 33 of the Ordinance, the deed shall not be deemed to be invalid by reason only of such failure.

4. The evidence established that the deed of revocation was executed on 9.6.1969.

Per Dheeraratne, J.

"It was quite clear that words and figures indicating nine in the protocol had been altered to read as nineteen. The alterations were not in the handwriting of Abdul Gafoor"

Case referred to:

1. Solicitor-General v. Ava Umma (1968) 71 NLR 512 at 575.

APPEAL from the judgment of the Court of Appeal reported in (1996) 2 Sri LR 62.

Faiz Musthapha, PC with Sanjeewa Jayawardena for the appellant.

S. Mahenthiran with MCM Muneer for the respondent.

Cur. adv. vult.

154

March 26, 1999.

DHEERARATNE, J.

The plaintiff was the owner of a paddy-field called Puddiyadivayal, in extent 10 acres and 2 roods. He, upon deed No. 690 dated 5.9.1966 attested by A. A. Majeed, Notary Public, in which his wife too joined, gifted the divided southern portion in extent 5 acres of the said field (the 5-acre field), to their daughter Nafeela Umma the 1st defendant. The gift was stated to be irrevocable. On 8.2.1968, the 1st defendant married Uthuma Lebbe Mohammedthambi the 2nd defendant. By deed No. 557 (the deed of revocation), attested by V. Sandrasegara, Notary Public, to which the plaintiff, his wife and the 1st defendant were parties, the earlier deed of gift No. 690 was revoked. The plaintiff stated that this deed of revocation was in fact attested on 9.6.1969, although it bore the date 19.6.1969. The 1st defendant, upon deed No. 20722 dated 11.6.69 attested by S. Gnanamuttu, Notary Public, purported to gift the said 5-acre field, to her husband the 2nd defendant, who in turn, purported to transfer the said 5-acre field upon deed No. 21162 dated 4.3.1970 attested by the same Notary to Ismail Lebbe Thingal Mohamed the original 3rd defendant.

The plaintiff filed this action on 31st January, 1973, seeking, inter alia, a declaration that he was the owner of the said 5 acre field; for cancellation of deed No. 20722 of 11.6.1969 and deed No. 21162 of 4.3.1970, both attested by S. Gnanamuttu, Notary Public; and that he be quieted in possession of the said field. The case of the plaintiff was that the 1st to 3rd defendants, acting fraudulently and in collusion, influenced V. Sandrasegara Notary Public, illegally, to falsify the deed of revocation by postdating it to read 19.6.1969 instead of 9.6.1969. It could be seen that if the deed of revocation was attested on 9.6.1969 as contended by the plaintiff, the 1st defendant had no title in the 5-acre field to gift to her husband the 2nd defendant, and consequently no interests would pass on to the 3rd defendant. The original plaintiff's action was contested only by the 3rd defendant. The learned trial judge in an admirably well-considered judgment, having held that the deed of

155

revocation was in fact attested on 9.6.1969 and not on 19.6.1969, gave judgment in favour of the plaintiff as prayed for. The Court of Appeal set aside the judgment of the learned District Judge primarily on the basis that - (1) the plaintiff had failed to prove due execution of the deed of revocation by calling the Notary; (2) that the 1st defendant had not consented to the revocation of the gift; and (3) that the deed of revocation was invalid. The present appeal to this Court is the sequel.

As I have mentioned earlier, the 1st and 2nd defendants did not contest the action. In view of what the Court of Appeal said about the failure to prove due execution of the deed of revocation, I would refer to some averments in the answer of the 3rd defendant. In paragraph 2 he stated ". . . the said deed of revocation No. 557 dated 9th June, 1969 and attested by V. Sandrasegara, Notary Public, is bad in law and in fact. . . ". Again in paragraph 3 he stated ". . . the averments contained in paragraph 6 of the plaint is wrong and misleading since the revocation of the donation was on 19.6.1969 but the donation made by the 1st defendant Ahamed Lebbe Nafeela Umma to her husband the 2nd defendant was on 11.6.1969 . . . . The question of due execution of the deed of revocation did not arise and the trial proceeded on the issues mentioned below; I have indicated the answer to each of those issues given by the learned District Judge, within brackets.

Plaintiff's A :

(1) Did the plaintiff execute the deed of revocation No. 557 attested by V. Sandrasegara with the concurrence of Nafeela Umma? (Yes).

(2) Was that deed executed on (a) 9.6.69 or (b) 19.6.69? (On 9.6.69).

(3) If issue No. 2 (a) is answered in the affirmative was the 2nd defendant aware of the said execution on 11.6.69? (Yes).

(4) If issue No. 3 is answered in the affirmative, was the 3rd defendant also aware of deed No. 557 of 9.6.69? (Yes).

156

(5) If issue No. 4 is answered in the affirmative, did the 3rd defendant obtain a transfer of the property in dispute by deed No. 21162 of 4.3.70 attested by S. Gnanamuttu NP well knowing that the 2nd defendant fraudulently obtained the deed of donation from Nafeela Umma? (Yes, but not necessarily fraudulently).

(6) If the deed of revocation referred to had been executed on 9.6.69, has the date thereon been subsequently altered to prevent the plaintiff from gaining prior registration in terms of the Registration of Documents Ordinance ? (Yes).

(7) If the above issues are answered in the affirmative is the plaintiff entitled in law to have the deed of gift bearing No. 20722 of 11.6.69 attested by S. Gnanamuttu NP set aside? (No).

(8) If issue No. 7 is answered in the affirmative, is the plaintiff also entitled to have the deed of transfer in favour of the 3rd defendant bearing No. 21162 of 4.3.70 also attested by S. Gnanamuttu set aside on the ground of fraud? (No).

(9) If the above issues are answered in the affirmative, is the plaintiff entitled to judgment as prayed for in the plaint? (The plaintiff is entitled to judgment as prayed for in the plaint).

3rd defendant's :

(10) Is the deed No. 690 of 5.9.66 deed of donation, a deed of gift irrevocable? (Yes).

(11) If issue No. 10 is answered in the affirmative, did the deed of revocation convey any title to the plaintiff? (Yes).

(12) Did deed No. 20722 of 11.6.69 convey the land described in the schedule B to the plaint to Uduma Lebbe Mohamedthambi? (No).

(13) Has the 3rd defendant bought the said land by deed No. 211162 of 4.3.70 from the 2nd defendant? (No).

(14) If issue is answered in the affirmative, has the plaintiff a cause of action against the 3rd defendant? (Yes).

157

Plaintiff's :

(15) Even if issue No. 10 is answered in the affirmative was the plaintiff entitled to have the deed of gift revoked with the concurrence of the donee Nafeela Umma? (Yes).

Even if due execution of the deed of revocation was required, section 68 of the Evidence Ordinance provides : "If a document is required by law to be attested, it shall not be used as evidence until one attesting witness at least has been called for the purpose of proving its execution, if there be an attesting witness alive, and subject to the process of the Court and capable of giving evidence". The Court of Appeal overlooked the fact that the evidence in the case disclosed that the V. Sandrasegara NP was dead at the time the trial commenced and his clerk Abdul Gafoor, in whose hand-writing the deed was, and who signed the deed as a witness, gave evidence identifying the signatures of the plaintiff, his wife, the 1st defendant, and of the Notary, all of whom he undoubtedly knew well. As observed by T. S. Fernando, J. in Solicitor-General v. Ava Umma(1) the proof of the execution of the documents mentioned in section 2 of the Prevention of Frauds Ordinance No. 7 of 1940 means proof of the identity of the person who signed as maker and proof that the document was signed in the presence of the Notary and two or more witnesses present at the same time who attested the execution.

According to the evidence of Abdul Gafoor which the learned trial judge accepted, Notary Sandrasegara was in the habit of getting him first to write the protocol in full and obtaining the signatures of the parties in the fully written protocol and in the other 2 copies in blank. Although none can grant sanction to such wayward ways, that in fact was what occurred in the notarial practice of Notary Sandrasegara. Section 33 of the Notaries Ordinance (chap. 110 NLE) reads : "no instrument shall be deemed to be invalid by reason only of the failure of any Notary to observe any provisions of any rule set out in section 31 in respect of any matter of form". (proviso omitted).

It was quite clear that words and figures indicating nine in the protocol had been altered to read as nineteen. The alterations

158

were not in the hand-writing of Abdul Gafoor. In addition, the document dated 16.6.69 (P12A) signed by the 1st defendant and sent to the district registrar, Batticaloa, objecting to registering a deed, obviously a reference to the deed of revocation, supported the position that the deed of revocation was in fact executed on 9..6.69. This document P12A was received in the office of the district registrar on 17.6.69. This document clearly shows that the deed of revocation was not executed on 19.6.69. As the learned trial judge correctly observed the 1st defendant was both a dutiful daughter and a plaiant wife.

Although the Court of Appeal thought that the 1st defendant did not give her consent to the deed of revocation there was no issue raised at the trial in that respect. The evidence of plaintiff and Abdul Gafoor was to the contrary. Moreover, the document dated 14.6.72 (marked P8) signed by the 1st defendant before the Assistant Commissioner of Agrarian Services, shows that she was agreeable to enter the name of her father in the paddy lands register as the owner of the land in dispute.

There is no doubt that the plaintiff could not have revoked the gift given to his daughter unilaterally. The learned trial judge rightly thought that the intention of the parties to the deed of revocation must be given effect to. According to the evidence led at trial coming principally from the plaintiff and witness Abdul Gafoor, both of whom the learned trial judge believed, the learned trial judge came to the conclusion that the 1st defendant voluntarily divested herself of the interests in the said paddy-field, in favour of her father.

For the above reasons we allow the appeal, set aside the judgment of the Court of Appeal and affirm the judgment of the original Court. The appellant will be entitled to a sum of Rs. 10,000 as costs.

PERERA, J. - I agree.

GUNASEKERA, J. - I agree.

Appeal allowed; judgment of the District Court affirmed.

Tuesday, July 5, 2022

EVOLUTION OF CRIMINAL MISAPPROPRIATION WITH TIME PASSAGE

 

CRIMINAL MISAPPROPRIATION SECTION 386

The next issue before us is, to consider whether the prosecution has established the charge of misappropriation in this case. The Learned Trial Judge after analyzing the evidence had proceeded to discharge the Accused-Appellant from the count of cheating which is the 1ST count in the Indictment. Since the two counts in the Indictment are alternative counts, I see no reason for the trial judge to record a discharge in the 1ST count, since the court had the discretion to convict the accused for either of the offences.  The second count is one under section 386 of the Penal Code, read with the provisions of section 5 of the Offences against Public Property Act No 12 of 1982.

 

Section 386 of the Penal Code reads as follows;

"Whoever dishonestly misappropriates or converts to his own use any movable property shall be punished with imprisonment of either description for a term which may extend to two years, or with fine or with both."

 In a case of Criminal Misappropriation actus reuse comprise three facets namely,

 a. There should be misappropriation or conversion of the property by the accused

 b. The properly must be movable property

 c. The property should belong to a person other there the accused

The requisite mens rea of this offence derives from the element of dishonesty and it was considered as an initial innocent taking of the property followed by a guilty state of mind at a later stage in a series of decided cases including Kanavadipillai Vs. Koswotte (1914) 4 Balasingham's Notes 74, Peiris Vs. Anderson (1928) 6 Times of Ceylon Reports 49 and Gratiaen Perera 61 NLR 522, until it was overturned in the case of Attorney General Vs. Menthis 61 NLR 561.

 In the case of Menthis Sinnethamby J observed that

"The Penal Code departed in this respect from the English law and made it an offence to misappropriate property even if the original possession was honest. Explanation 2, it seems to me, was merely intended to emphasize the difference between the law in England and under the Code but it does not postulate that in order to constitute criminal misappropriation the initial taking must always be honest. Indeed it suggests that an initial dishonest taking also amounts to criminal misappropriation for it states that a person who finds property and takes it "for the purpose of protecting it for, or of restoring it to, the owner, does not take or misappropriate it dishonestly", thereby suggesting that if the finder does not take it for such a purpose he will be guilty of the offence.

 The main provisions of Section 386 make dishonest misappropriation at any stage an offence; Explanation 2 only provides for a special case where the initial taking is honest and its intended to protect the finder of property not in the possession of anyone so long, and only so long, as his continued possession of that property is honest. If, of course, the property taken was in the possession of some person the resulting offence would be theft. In my opinion, therefore in order to constitute misappropriation under our law it is not necessary that there should be an innocent initial taking. If the initial taking of the property not in the possession of anyone is dishonest then too the offence is made out. In regard to this, I agree with the view expressed by Justice Moseley in Salgado V. Mudali Pulle (supra).

 " However when going through the judgment of the Learned High Court Judge I observe that instead of considering the legal provisions required to be established a charge under section 386, the trial judge had proceeded to consider the requirement to establish a charge under section 388 a charge under Criminal Breach of Trust. Whilst discussing the provision of section 388 of the Penal Code Learned Trial Judge had applied the evidence led in the trial for the legal requirement in a charge of Criminal Breach of Trust and concluded that the Accused had used or disposed of that property in violation of any legal contract expressed or implied which he has made touching the discharge of such trust (Page 29 and 30 of the Judgment).

 In the absence of consideration under section 386 of the Penal Code, whether the Accused-Appellant "dishonestly misappropriated or converts to his own use" the said money, specially in the light of documents marked P-14 and ~- t 9 I observe that it is unsafe to conclude that the available material is sufficient to convict the Accused-Appellant for the second count

 

 

 

Walgamage v/s The Attorney-General SC Appeal No. 38 of 90 & CA No. 126 of 85 & MC Matara No. 5 of 8  Decided On, 10 July 1991

 
Special leave to appeal was granted in this case in view of conflicting decisions (in A.G. v. Menthis,(1) and Ranasinghe v. Wijendra,(2) and the decisions cited therein) upon the question whether to constitute the offence of criminal misappropriation or criminal breach of trust it is essential that the initial taking be innocent.

The Appellant was convicted of criminal breach of trust, in respect of a sum of Rs. 50,000/- while being employed as Manager of a Rural Bank. The Rural Bank accepted savings deposits, and granted small loans, and also carried on the business of a pawn broker. According to prescribed operating procedures, its cash balance at any given time should not have exceeded Rs. 5,000/-. If the Bank required cash, a sum not exceeding Rs. 5,000/- at a time was obtained from the Multi-Purpose Co-operative Society ("M.P.C.S.") within whose premises it functioned.

The Bank's cashier would make an oral request for cash to the Appellant, who would prepare a voucher for that purpose, and submit it to the Credit Manager of the M.P. C .S. The latter was expected to satisfy himself that cash was actually required, and would then authorize a cheque to be drawn for the stipulated amount, in the name of the Appellant. A cheque would then be prepared, and duly signed, and delivered to the Appellant, who would endorse it; his endorsement would be authenticated by the Accountant, and the cheque would then be presented to the cashier of the M.P.C.S., who would pay cash. The Appellant was expected to hand over the cash to the cashier of the Bank.

Fourteen vouchers for Rs. 5,000/- each were prepared by the Appellant, at times when the cashier had not required cash, and had made no request for cash; the Credit Manager had approved the vouchers and sanctioned payment without due care. Fourteen cheques for Rs. 5,000/- each had been issued, and in respect of ten of these, the M.P.C.S. cashier had paid cash to the Appellant, which he had not handed over to the Bank's cashier. The Appellant was found guilty by the High Court of Matara of criminal breach of trust under section 391 of the Penal Code, and was sentenced to two years R.I., and a fine of Rs. 50,000/- (in default 1 1/2 years R.I.). The Court of Appeal while upholding the conviction, suspended the prison sentence for a term of five years, and affirmed the fine and default sentence, with appropriate directions to the High Court.
ENTRUSTED PROPERTY MUST BE CLEAR
If there was an "entrustment", it was not merely of the cheque but also of the cash obtained in exchange.

 In King u. Kabeer,(3) a jail guard was entrusted with a railway warrant, and instructed to accompany a prisoner who had served his sentence to the railway station, to receive a train ticket in exchange for the warrant, and to give him the ticket. Having obtained the ticket the jail guard sold it. De Sampayo, J., upheld an acquittal on a charge of criminal breach of trust in respect of the warrant. The trust in respect of the railway warrant was to deliver it to the proper officer at the railway station and to receive a ticket in exchange; although it was true that he had failed to perform the further duty of handing the ticket to the prisoner, that had no immediate connection with the trust in respect of the warrant. That case is distinguishable: there was no charge of criminal breach of trust in respect of the ticket, and in any event, the ticket was not "entrusted" by the prison authorities, but handed over by a third party, the railway officer.

In the present case, the Bank had an arrangement with the M.P.C.S. whereby the latter would provide cash to designated officers of the Bank. The M.P.C.S., through one or more of its officers, provided cash, and as part of its internal procedure (and it is immaterial whether this was made known to the Bank or not) first issued a cheque through one officer, and cash upon presentation of the cheque to another officer. That transaction cannot be separated into two distinct components: the delivery of a cheque subject to a "trust", and the delivery of cash in exchange for the cheque, free of such "trust". In pursuance of an arrangement with the Bank, the M.P.C.S. through its officers caused cash to be delivered to the Appellant, and it was part of the arrangement that this sum was "entrusted" to the Appellant to be handed over to the Bank's cashier. It is true that the officers of the M.P.C.S. did not themselves, personally, "entrust" the cash; they were no more than the hands which delivered the cash, there being an entrustment by the legal person, namely the M.P.C.S., whose business organization they served.



It is possible that the Appellant had no dishonest intention on the first occasion (and perhaps even on the second) when he obtained cash in this way; it may well be that he obtained cash in anticipation of requests by the Bank's cashier in order to expedite the Bank's business, by immediately responding to a request for cash without having to spend time in going through the process of approval, documentation, and payment. But the sum obtained on the first occasion was not actually paid to the Bank's cashier. Hence it is reasonable to conclude that at least on the subsequent occasions, he had a dishonest intention at the outset. Learned President's Counsel submitted that the Prosecution evidence thus established the offence of cheating; and that criminal breach of trust had not been made out because
(a) there had been no initial taking bereft of a dishonest intention, and

(b) there had been no entrustment: because a trust implies confidence reposed by one person in another, and it is of the essence of confidence that it must be freely given and that there must be a true consent; there is no true consent, if consent is obtained as a result of a trick.In support of his contention that the initial taking must be innocent, and that a dishonest intention must be formed subsequently, learned President's Counsel advanced three arguments. He conceded that ex facie section 386 does not impose such a requirement, but only that a dishonest intention must exist at the time of misappropriation or conversion to the offender's own use. Insistence upon an initial innocent taking amounts to adding a further ingredient, namely "whoever having obtained possession of any movable property without a dishonest intention thereafter dishonestly misappropriates or converts to his own use such movable property . . ." His first submission was that in respect of offences against property there are clear lines of demarcation in the Penal Code between those where the victim is in possession at the time the offence is committed (such as theft and cheating) and those where the victim is out of possession the offender being already in possession (such as criminal misappropriation and criminal breach of trust); all these offences are intended to be self-contained without any overlapping, so that the same act could not constitute both cheating and criminal misappropriation. He urged that "it is an established principle that criminal laws must be construed narrowly or in favorem vitae aut libertatis'', citing Maxwell (Interpretation of Statutes, 12th Edition, p. 245):

"Similarly, statutes dealing with jurisdiction and procedure are, if they relate to the infliction of penalties, strictly construed: compliance with procedural provisions will be stringently exacted from those proceeding against the person liable to be penalised, and if there is any ambiguity or doubt it will, as usual, be resolved in his favour. This is so even though it may enable him to escape upon a technicality." Secondly he contended that the Indian Courts had consistently taken this view; the decision in Rajendra v. State of Uttar Pradesh,(4) cited in the Court of Appeal judgment was not in line with the Indian trend.

In support of these two contentions reference was made to the observations of Weeramantry, J., in Ranasinghe v. Wijendra (Supra)

"This indeed would appear to be the understanding of this offence in India as well. Thus Ratanlal & Thakore begin their comment on this section with the observation that:

 "criminal misappropriation takes place when the possession has been innocently come by, but where, by a subsequent change of intention, or from the knowledge of some new fact with which the party was not previously acquainted, the retaining becomes wrongful and fraudulent. The offence consists in the dishonest misappropriation or conversion, either permanently or for a time, of property which is already without wrong in the possession of the offender."

 The authors go on to point out that in this, respect the Penal Code is at variance with the English law according to which the intention of the accused only at the time of obtaining possession is taken into account.So also the original texts of the Penal Law of India by Sir Hari Singh Gour himself would appear to draw this distinction. It is there stated:

 

"The question whether the act is theft or misappropriation depends upon when the dishonesty began - was it before or after the thing came into possession. This is a point of division as much between the two offences of theft and criminal misappropriation in the Code, as between criminal misappropriation and a civil wrong under English law." This absence of wrongful initial taking is stressed again for he observes in a later passage that in theft the initial taking is wrongful but in criminal misappropriation it is indifferent and may even be innocent but becomes wrongful by a subsequent change of intention or from knowledge of some new fact with which the party was not previously acquainted. The word "indifferent" in this passage would appear to refer to a neutral state of mind - that is where the doer has not affirmatively formed a wrongful intention at the time of taking.

Later editions of this celebrated work by other editors seem to depart however from the view of the distinguished author, for the 8th edition states that it is difficult to say that misappropriation cannot be committed if the accused had a dishonest intention at the moment of taking possession of the article. I would prefer on this point to follow the view expressed by Sir Hari Singh Gour himself. "(pp 42-43)"

Thirdly he urged that the cursus curiae in Sri Lanka was to regard innocent initial taking as an indispensable ingredient of criminal misappropriation, except for a brief interlude of ten years between A. G. v. Menthis and Ranasinghe v. Wijendra (Supra) this was the view expressed by professor G. L. Peiris (Offences under the Penal Code, p 460).

Neither the Penal Code nor any other statute lays down a principle of interpretation that the there is no offences in the Penal Code must be presumed not to overlap. It is because the Criminal Procedure Code of 1898 recognized that there may be such overlapping that section 180(2) (corresponding to section 175(2) of the present Code of Criminal Procedure Act) provided that:

"If the acts alleged constitute an offence falling within two or more separate definitions of any law in force for the time being by which offences are defined or punished the person accused of them maybe charged with and tried at one trial for each of such offences . ."

The first illustration to that section demonstrates that the same act could constitute the offence of causing hurt as well as of using criminal force. The principle that penal statutes are to be strictly construed does not apply where a statute is clear and unambiguous. I am therefore of the view that the suggested principles of interpretation cannot be applied so as to introduce an additional ingredient into the definition of an offence. It is unnecessary to consider when and how those principles could be utilized to resolve an ambiguity, because we are here concerned not with an ambiguity but with the imposition of an additional ingredient through interpretation.

It is true that at the time the Penal Code was enacted in India larceny in English law did not include cases where property was taken without a dishonest intention; probably the offence of criminal misappropriation was intended to cover such cases. However, the definition actually adopted to give effect to that intention covers not only such cases, but extends also to cases where a dishonest intention existed at the outset. Illustrations (b), (c) and (f) to explanation 2 to section 386 are against learned President's Counsel's contention that criminal misappropriation deals with cases where the offender is already in possession, for they show that a person who finds property not in the possession of any one, and immediately misappropriates it is guilty of that offence. This explanation, is not an exception to, or an extension of, the section, but namely illustrates the principle contained therein. It serves to emphasise that all that is required is dishonesty at the time of the act of misappropriation or conversion.

The position in India is by no means consistent. Gour's view has not been acted upon in many instances. Cases referred to in the Commentaries on the Indian Penal Code include the following:
false representation and take the possession is misappropriation
"A Hindu girl having picked up a gold necklet and made it over to a sweeper girl, the accused, the brother of the finder, represented to the latter that the necklet belonged to a person of his acquaintance and thus got possession of it from her. On inquiry by a police constable a few hours later, he repeated the representations, but afterwards gave up the necklet. These representations were found to be untrue to the knowledge of the accused. It was held that he had committed this offence (criminal misappropriation)." Ram Dayal,(
1886) P.R. No. 24 1886).
By mistake received a article and appropriate is misappropriation
"Where money is paid to a person by mistake, and such person, either at the time of the receipt or at any time subsequently, discovers the mistake, and determines to appropriate the money, that person is guilty of criminal misappropriation." Shamsooudur,(
(1870) 2 N.W.P. 475).
Article hand over voluntary by A but B swap with some other article is misappropriation
"A and B were about to travel by the same train from Benares City. A had a ticket for Ajudhia. B had two tickets for Benares Cantonment. A voluntarily handed over her ticket to B in order that he might tell her if it was right. B under the presence of returning A's ticket, substituted therefore one of his own, and kept A's ticket. It was held that the offence committed by B was that of criminal misappropriation rather than that of cheating." Raza Husain,(
(1905) 25 A.W.N. 9, 2 Cr.L. 394).

"Even though the accused when they induced the complainant to part with certain properties had the intention of deceiving him, a subsequent misappropriation by them of the property to their own use would amount to criminal breach of trust. The fact that there was a complete offence of cheating when the property was received would not prevent the accused being guilty of the offence of criminal breach of trust." Mc Iver,(
(1935) 69 M.L.J. 681).

[Ratanlal and Thakore, Law of Crimes, 22nd ed, pp 1040, 1041, 1045, 1051, Gour, Penal Law of India, 10th ed, pp 3450, 3459, 34601 in view of such decisions it is not surprising that the present edition of Gour's work (at p. 3453) states

Who asked the article and run then its criminal misappropriation
"The argument that criminal misappropriation cannot be committed if the accused had dishonest intention at the time of taking possession of the article, cannot be accepted."

The first of the local cases relied on as establishing a cursus curiae is Stickney v. Sinnatamby,( (1886) 5 Tam b 112). There, upon being asked for his gun by the accused, the complainant voluntarily parted with it. The accused ran away with it. It was held that the accused was wrongly convicted of theft and that he could not be convicted of cheating as there was no dishonest or fraudulent inducement to the complainant to deliver the gun. The conviction was altered to criminal misappropriation.

Article came by automatic but refused to returned

In Peries v. Anderson  (1928) 6 Times 49 ) the Appellant gave his chauffeur an identifiable 25-cent coin, and sent him to a boutique to buy cigarettes. The chauffeur placed the coin on the table, whereupon it rolled into the drawer, but the salesman denied receipt of the money and refused to give the cigarettes. When this was told to the Appellant, he insisted on searching the drawer, and found the coin; he then took the salesman to the Police Station, using some degree of force or compulsion. The Appellant was charged for that offence, and the question was whether he could justify the arrest of the salesman on the basis that the salesman had committed a cognisable offence. It was held that the salesman had not committed theft as "there was no taking of the property from (the chauffeur); ... there was nothing dishonest in the manner in which he acquired possession of it, but the dishonesty occurred when he denied the receipt of the money. This offence therefore was dishonest misappropriation."
what is the situation if initial taking is dishonest
These decisions are not authority for the principle that if a dishonest intention exists at the time possession is acquired, there can be no conviction for criminal misappropriation.In Georgesy v. Saibo,(11) the payee of a cheque, having endorsed it, put it into an envelope with a letter addressed to his banker requesting that the proceeds be placed to his credit. The accused having come into possession of the cheque, endorsed it in favour of a Chetty who thereupon paid him the amount of the cheque, less his commission. The accused was found guilty under section 394 of dishonestly receiving stolen property. It was held in appeal that there was no definite evidence that the cheque had been stolen, for it might have been lost in the post. Faced with an imminent acquittal, Counsel suggested that the Court should consider whether the accused could be convicted of criminal misappropriations. Middleton, j., having held that on the evidence the only inference was that the accused had come dishonestly by the cheque, observed:
"Now all the cases which have been decided by the Indian Courts point to the conclusion that in order to constitute the offence of criminal misappropriation there must be first an innocent possession . . . and then a subsequent change of intention. If I find that the man dishonestly came by the cheque, as I do, although that would put him in a worse position morally than if he had come by it in such a way as would make him amenable under section 386, yet I am bound to confess that it is impossible to meet the weight of authority that has been put before me, and to say that the original misappropriation constitutes an offence under section 386."

However, neither the names nor the references of the Indian decisions are set out in the judgement. In Kanavadipillai v. Koswatta,(
(1914) 4 Bal. N.C. 74 ) the accused asked a boutique keeper for a box of matches, and having obtained it, gave a five rupee note. The boutique keeper said he had no change and gave back the note. The accused took the note and the box of matches to the railway station, there got the note changed, and was returning when he met the constable and the complainant. Although it was observed that he should not have been convicted of criminal misappropriation, as that offence requires an initial innocent acquisition of possession, yet it was held on the facts that there was no appropriation or conversion to his own use by the accused, nor an intention to cause wrongful loss to the complainant. These two decisions do not discuss the provisions of section 386, and state the proposition that criminal misappropriation requires an initial innocent possession almost as if it were axiomatic. Georgesy v. Saibo Supra) referred to this proposition only in reference to the invitation to convict the accused on a different charge, and Kanavadipillai v. Koswatta (Supra) could have been determined, on the facts, without any reliance on this proposition.
On the other hand, in R. v. Suppaiya,(13) it was held that a servant who receives money on behalf of his master and enters the amount received in his master's book, but afterwards denies the receipt of the money is guilty of criminal breach of trust. Although the judgment does not consider whether the dishonest intention should have been formed after receiving the money, yet the contention for the prosecution on appeal was that "the original taking was with dishonest intention." Clearly, the Court did not consider this to negative criminal misappropriation. In the sixth volume of the Ceylon Law Review there is a note of a decision that:
prior knowledge of real owner is not nessassary
"It is not enough in a case of criminal misappropriation of property to say that the accused must have known at the time he took the property that it belonged to the complainant. There must be undoubted proof of such knowledge on the part of the accused. "(
4. S.C. 61 P.C. Chilaw 29737; 4. 3. 1910. 6 C.L. Revision 137. 153)

Thus it can hardly be said that by 1960 there was a clear, definite and consistent line of authority on this point. In Gratiaen Perera v. The Queen-(
1960) 61 NLR 5225) Sinnetamby, J., stated that

"the authorities seem to suggest that there must be an initial honest possession followed by a dishonest conversion" but it was not necessary to decide the point; when it did become necessary, a week later, he held in A. G. v. Menthis, (Supra) that if the initial taking of property, not in the possession of anyone, was dishonest, the offence was made out.

In Ranasinghe v. Wijendra
(1970) 74 NLR 38  Weeramantry, J., distinguished A.G. v. Menthis  (1960) 61 NLR 561 as applicable only to the taking of property not in the possession of anyone. Relying on Georgesy v. Saibo(11) and Kanavadipillai v. Koswatte,(12) and Gour's views as to the demarcation between theft and criminal misappropriation, he held that for the latter offence an initial innocent taking was essential. R v. Suppaiya (Supra) does not appear to have been cited.

 

With much respect to that distinguished Judge, I regret that I am unable to agree. The plain language of section 386 imposes no such requirement; the Penal Code does not contain any rigid demarcation between offences; the cursus curiae in India and Sri Lanka does not reveal an emphatic and uniform insistence on such a requirement. Section 388 is even plainer: it refers to an ingredient of "entrustment" (which is anterior to and distinct from the dishonest misappropriation, conversion, use or disposal which is another ingredient), but does not require that there be an innocent intention at the time of entrustment. The Appellant's first contention therefore fails.

The Appellant's second contention is based upon the assumption that the M.P. C. S. and its officers were induced to entrust each cheque to him by a trick. The arrangement between the Bank and the M.P.C.S. was that upon a voucher being submitted, a cheque would be issued to the Appellant; the M.P.C.S. was not required to inquire into the motives of the Appellant or whether the Bank actually needed cash; the operative cause of each cheque being entrusted to the Appellant was the submission of vouchers in due form. Thus even if it be correct that an entrustment induced by a trick will not satisfy section 388 - and I express no opinion as to whether that is an inflexible rule - that question does not arise here. "Entrustment" does not contemplate the creation of a trust with all the technicalities of the law of trust; it includes the delivery of property to another to be dealt with in accordance with an arrangement made either then or previously. That was the case here.
I therefore dismiss the appeal and affirm the order of the Court of Appeal.