IN THE HIGH COURT OF JUDICATURE AT MADRAS
R. SAKTHIVEL
Chinnappa Gounder (Died) – Appellant
Versus
G. Kandhasamy (Died) – Respondent
JUDGMENT :
(R. SAKTHIVEL, J.)
This Second Appeal is directed against the Judgment and Decree dated December 16, 2013 passed in A.S.No.77 of 2013 by the 'Principal District Court, Erode' ['First Appellate Court' for brevity], whereby the Judgment and Decree dated June 29, 2012 passed in O.S.No.126 of 2010 by the 'Sub Court, Gobichettipalayam' ['Trial Court' for brevity] was confirmed.
2. For the sake of convenience, hereinafter, the parties will be referred to as per their array in the Original Suit.
PLAINTIFF'S CASE
3. Case of the plaintiff is that the defendant borrowed a sum of Rs.2,50,000/- from the plaintiff for his cultivation expenses, on January 28, 2008 and executed a Promissory Note in favour of the plaintiff agreeing to repay the same with interest at the rate of Re.1/- per Rs.100/- per month. Despite repeated demands made by the plaintiff, the defendant neither paid interest nor the principal amount. Hence, the plaintiff issued a legal notice on August 11, 2010 and the same was received by the defendant on August 12, 2010. The defendant sent a reply on August 17, 2010 with false averments. Hence, the plaintiff filed the Suit seeking money decree.
DEFENDANT'S CASE
4. The defenda
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.
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 execution of a promissory note creates a presumption of consideration, which the defendant must rebut with credible evidence to avoid liability.
The presumption of consideration applies to promissory notes once execution is admitted, placing the burden on the defendant to prove otherwise.
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