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THE HIGH COURT OF JUDICATURE AT MADRAS
N. SATHISH KUMAR, J
R. Senthilkumar – Appellant
Versus
R. Soundarakumar – Respondent
JUDGMENT :
Challenging the decree and judgment of the trial Court decreeing the suit in O.S.No.96 of 2014 dated 24.02.2020 for recovery of a sum of Rs.8,50,000/- with interest at the rate of 12% per annum from the date of promissory note till the date of realization of the entire amount, the present appeal came to be filed.
2. The parties are arrayed as per their own ranking before the trial Court.
3. Brief background of the case is as follows :
The suit has been filed for recovery of a sum of Rs.10,23,400/- with future interest at the rate of 24% per annum on the principal of Rs.8,50,000/- till the realization of the entire amount with costs of the suit. The plaintiff is engaged in the manufacturing of Wed grinder and Motor Pump set and marketing the same. The defendant is doing scrap business and running a foundry. He is known to the plaintiff for the past 10 years. During the first week of May 2013, the defendants approached the plaintiff for financial assistance to the tune of Rs.8,50,000/-. Accordingly, the defendant borrowed the said amount from the plaintiff on 10.05.2013 agreeing to repay the amount with interest at the rate of 24% per annum and executed a promissory note on th
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 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 pronote is presumed valid under the Negotiable Instruments Act unless the defendant provides sufficient evidence to disprove consideration.
The presumption of consideration under Section 118 of the Act is a statutory presumption and unless it is rebutted, it has to be presumed that consideration has passed.
The presumption of consideration applies to promissory notes once execution is admitted, placing the burden on the defendant to prove otherwise.
The court emphasized the importance of specific pleading to support new cases during evidence and upheld the lower courts' findings regarding the execution of the promissory note and receipt of consi....
The burden of proof to disprove the existence of consideration for a negotiable instrument lies with the Defendant, and the Plaintiff is entitled to the benefit of presumption under Section 118 of th....
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