Pronote and receipts – Presumption provides that every negotiable instrument was made or drawn for consideration, and every such instrument, when it has been accepted, endorsed, negotiated or transferred, was accepted, endorsed, negotiated or transferred for consideration -- However, the presumption is rebuttable once the defendant by direct or circumstantial evidence proves on record that the promissory note was not supported by consideration in the manner stated therein -- Defendant can rebut the presumption under Section 118 of the Act by showing preponderance of probability in his favour and against the plaintiff.

(P&H HC) Decided on: 06.11.2015

Pronote and receipts for Rs.6 lacs – As per plaintiff’s income tax return he himself is a debtor to the tune of Rs. 3 lacs -- This circumstance makes a dent upon the capacity of plaintiff to lend huge amount -- Non-production of record sought by the defendants has strengthened their defence in dislodging the presumption under Section 118 of the Act -- Plea was further shattered by the fact that the loan amount was never reflected in the income tax returns of plaintiff – In the absence of proof of money being available with the plaintiff, defendant(s) had succeeded in proving that the pronotes and receipts were without consideration.

(P&H HC) Decided on: 06.11.2015