1979 Supreme(AP) 61

Andhra Pradesh High Court
Judges : M.RATNAM
S.Perumal Chettiar - Appellant
Versus
T.Santhanam - Respondent
S. A. 76/76
Decided On : 02-20-79

Headnote:Negotiable Instruments Act, Section 118 - Presumptions and when rebutted - Shifting of burden.

       In a suit on a pronote the defendant admitted the execution of pronate but contended that he executed the pronote towards interest due by him on a mortgage executed by him.

       The question whether the statutory presumption is rebutted by the rest of evidence is a question of fact but the presumption itself is not left to the discretion of the court and the court is not entitled to ignore the presumption. When the execution of pronote is admitted a presumption was raised in favour of the plaintiff that the not a was made for consideration and when this presumption is raised it had the effect of the shifting the burden on the defendant to establish that there was no consideration.

       Initially on the admission of the execution of the pronote the burden shifted to the defendant to establish that the note was not supported by the kind of consideration mentioned in the note. Then the burden is shifted to the plaintiff to establish that the pronote was supported by a different kind of consideration than that was recited in the pronate. But when, there is the specific admission of the defendant that the pronote was executed for interest due by him on a mortgage executed by him in favour of the plaintiff there was no need for the plaintiff to further establish that the pronote was supported by consideration.