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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
| Table of Content |
|---|
| 1. defendant borrowed money from plaintiff. (Para 1 , 2 , 3 , 4 , 5 , 6) |
| 2. trial court decreed suit based on evidence. (Para 8 , 9) |
| 3. discussion on the enforceability of the promissory note. (Para 10) |
| 4. defendant challenges trial court's decision. (Para 11) |
| 5. plaintiff defends the trial court's decree. (Para 12 , 17 , 18 , 19) |
| 6. evidence supports promissory note validity. (Para 14 , 15 , 16 , 20 , 21) |
| 7. no grounds to interfere; appeal dismissed. (Para 22 , 23) |
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 plaint
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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