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1956 Supreme(All) 39

AGARWALA, DESAI, V.D.BHARGAVA
ABDUL SHAKUR – Appellant
Versus
KOTWALESHWAR PRASAD – Respondent


Advocates Appeared:
D.D.Seth, J.Swarup, K.K.MISHRA, Krishna Shankar, M.H.BEG, S.S.DHAVAN, SATISH CHANDRA

V. D. BHARGAVA, J.

( 1 ) THE two questions which have been referred to this Bench for decision are:

"1. Whether the presumption mentioned in Clause (a) of Section 118, Negotiable Instruments act, 1881, can be invoked in insolvency proceedings where an alleged debt against the insolvent is called in question by the official receiver or by a creditor or by the insolvent? 2. If it can be invoked, would circumstances tending to make it doubtful that consideration passed under the negotiable instrument, even though coupled with a denial on the part of the maker of the instrument, suffice to deprive the creditor of the benefit of the presumption and inquire him to prove by evidence that consideration did actually pass?"

( 2 ) I had the advantage of going through the judgments of my brothers Agarwala and Desai, JJ. On the first question I am inclined to agree with my brother Desai, J. and I would only add a few words.

( 3 ) SECTION 118, Negotiable Instruments Act appears in Chapter 13 of the said Act which is headed "special Rules of Evidence". This, to my mind, means that so far as general rules of evidence are concerned they are abrogated and this chapter should be deemed to be engrafted













































































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