Laws and Bare Acts of India at

MyNation Foundation Online Law Library

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.



Previous | Next


The Negotiable Instruments Act, 1881


Indian Laws – Bare Acts

Leave a Reply

Your email address will not be published.

Copyright © 2022 Laws and Bare Acts of India at

Free Legal Help, Just WhatsApp Away

MyNation HELP line

We are Not Lawyers, but No Lawyer will give you Advice like We do

Please read Group Rules – CLICK HERE, If You agree then Please Register CLICK HERE and after registration  JOIN WELCOME GROUP HERE

We handle Women Centric biased laws like False Section 498A IPC, Domestic Violence(DV ACT), Divorce, Maintenance, Alimony, Child Custody, HMA 24, 125 CrPc, 307, 312, 313, 323, 354, 376, 377, 406, 420, 497, 506, 509; TEP, RTI and many more…

MyNation FoundationMyNation FoundationMyNation Foundation