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IN THE HIGH COURT OF JUDICATURE AT MADRAS
Honourable Mr Justice V.SIVAGNANAM
J.Kathiresan – Appellant
Versus
M.N.Balamurugan – Respondent
JUDGMENT :
Aggrieved over the Judgement and Decree dated 23.11.2016 passed in O.S.No.186 of 2009 by the 1st Additional District Judge, Salem, the defendant has preferred the appeal suit.
2. For the sake of convenience, the parties are referred to as per their rankings in the trial Court.
3. Suit for recovery of money.
4. The defendant in O.S.No.186 of 2009 on the file of the 1st Additional District Court, Salem, is the appellant herein and the plaintiff is the respondent herein.
5. The plaintiff's case is as follows:
The defendant borrowed a sum of Rs.20,00,000/- (Twenty lakhs only) for his gold business from the plaintiff on 30.08.2008 agreeing to repay the same on demand with interest at 18% per annum to the plaintiff. The defendant executed an on – demand note in the presence of witnesses on the same date. Thereafter, the defendant had not paid any amount either towards interest or principal in spite of repeated demands.
5.1.While so, on 30.11.2008, when the plaintiff approached the defendant requesting payment and warned him of further action if the amounts are not paid, the defendant with a view to defeat and defraud the claim of the plaintiff, sent a letter on 03.12.2008 to the plai
The court upheld the validity of a promissory note securing a loan, emphasizing the burden of proof on the defendant to negate the presumption of consideration under the Negotiable Instruments Act.
The presumption of consideration applies to promissory notes once execution is admitted, placing the burden on the defendant to prove otherwise.
The presumption under Section 118 of the Negotiable Instruments Act arises when execution of a promissory note is established, placing the burden on the defendant to disprove the transaction.
The execution of a pronote creates a presumption of borrowing and debt, and the burden of proof is on the party seeking to rebut this presumption.
The execution of a Pronote establishes a legal presumption of consideration, shifting the burden of proof to the defendant to disprove it.
The court confirmed that once a plaintiff establishes the execution of a promissory note, the burden shifts to the defendant to disprove its validity; failure to do so upholds the note's legal presum....
The presumption of validity for negotiable instruments is established unless effectively rebutted by the defendant, who bears the burden of proof regarding allegations of forgery.
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