Section 118 – The Negotiable Instruments Act, 1881

The Negotiable Instruments Act, 1881

 

118. Presumptions as to negotiable instruments of consideration

 

Until the contrary is proved, the following presumptions shall be made:-

 

(a) of consideration-that every negotiable instrument was made or drawn for consideration, and that every such instrument, when it has been accepted, indorsed, negotiated or transferred, was accepted, indorsed, negotiated or transferred for consideration;

 

(b) as to date- that every negotiable instrument bearing a date was made or drawn on such date;

 

(c) as to time of acceptance- that every accepted bill of exchange was accepted within a reasonable time after its date its date and before its maturity;

 

(d) as to time of transfer.- that every transfer of a negotiable instrument was made before its maturity;

 

(e) as to order of endorsements – that the endorsements appearing upon a negotiable instrument were made in the order in which they appear thereon;

 

(f) as to stamps-that a lost promissory note, bill of exchange or cheque was duly stamped;

 

(g) that holder is a holder in due course – that the holder of a negotiable instrument is a holder in due course; provided that, where the instrument has been contained from its lawful owner, or form any person in lawful custody thereof, by means of an offence or fraud, or for unlawful consideration, the burden of proving that the holder is a holder in due course lies upon him.

 

 

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The Negotiable Instruments Act, 1881

 

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