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BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
HONOURABLE MR. JUSTICE P. VADAMALAI
K. Kamaraj – Appellant
Versus
B. Rajasekaran – Respondent
JUDGMENT :
1. This Appeal Suit is filed against the judgment and decree, dated 01.11.2023 passed in O.S.No.12 of 2019 on the file of the learned Principal District Judge, Tiruchirappalli.
2. The appellant is the defendant in O.S.No.12 of 2019 on the file of the Principal District Court, Tiruchirappalli. The respondent is the plaintiff in that suit. The respondent/plaintiff filed the suit for recovery of money based on the promissory note against the appellant/defendant. The appellant/defendant contested the suit. The suit was decreed by the trial Court.
3. For the sake of convenience, the parties are referred to as per their rank before the trial Court.
4. The brief facts are as below:
(a) The case of the plaintiff is that the defendant borrowed Rs.9,00,000/- (Rupees Nine lakhs only) from the plaintiff on 02.01.2018 and executed a promissory note in favour of the plaintiff agreeing to repay the same with interest at 1% p.m. After borrowal of loan, the defendant has not repaid any amount either towards principal or interest, in spite of several demands made by the plaintiff. Hence, the plaintiff has filed the suit.
(b) The case of the defendant is that the defendant asked loan of Rs.2,50,
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.
Execution of a promissory note raises a presumption of consideration; failure to rebut this presumption results in liability for the debt.
The plaintiff must discharge the legal burden of proving consideration for a promissory note, failing which the suit may be dismissed.
The presumption of consideration applies to promissory notes once execution is admitted, placing the burden on the defendant to prove otherwise.
The mere admission of a signature on a Promissory Note does not invoke the presumption under Section 118 of the Negotiable Instruments Act without proof of execution and passing of consideration.
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....
(1) Once signature in promissory note is admitted, presumption would go to support execution of Pronote.(2) Stamp paper purchased by or for use of a person, can be used by that person or his legal re....
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