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IN THE HIGH COURT OF JUDICATURE AT MADRAS
Honourable Mr Justice N. SATHISH KUMAR
Purushothaman – Appellant
Versus
Nedumaran – Respondent
JUDGMENT :
(N. SATHISH KUMAR, J.)
Challenging the judgment and decree of the Trial Court, decreeing the suit on the basis of Promissory Notes, for recovery of Rs.15,00,000/- with interest @ 9% p.a. from the date of suit till the decree and thereafter, 6% interest till the date of realization, the present appeal has been filed.
2. The parties are arrayed as per their own ranking before the Trial Court.
3. It is the case of the plaintiff that the defendant borrowed a sum of Rs.8,00,000/- from the plaintiff on 03.02.2018 and executed a Promissory Note agreeing to pay the amount with monthly interest at Rs.1/- per Rs.100/- and also borrowed another Rs.7,00,000/- on 08.03.2018 agreeing to pay the monthly interest at Rs.1/- per Rs.100/- and executed another Promissory Note. Despite repeated demand, the amount has not been paid and hence, the plaintiff has issued a legal notice on 16.10.2019, inspite of which, the defendant has not shown any interest to pay the amount.
4. The defendant has filed a written statement, contending that he never borrowed any amount or executed Pronotes. According to him, 10 years back, he was a subscriber to the Chit run by the plaintiff and he joined Rs.5,00,000
Execution of Promissory Notes is valid unless substantial evidence to the contrary dislodges the legal presumption of consideration under the Negotiable Instruments Act.
The execution of a pronote is presumed valid under the Negotiable Instruments Act unless the defendant provides sufficient evidence to disprove consideration.
The execution of a promissory note establishes a legal presumption of consideration that the defendant must rebut; failure to do so results in judgment favoring the plaintiff.
The execution of a promissory note is presumed valid under Section 118 of the Negotiable Instruments Act, shifting the burden to the defendant to prove lack of consideration.
The execution of a Pronote establishes a legal presumption of consideration, shifting the burden of proof to the defendant to disprove it.
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 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.
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