Negotiable Instruments Act 13 Special Rules of Evidence

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Negotiable Instruments Act, 1881

Chapter – NIA 01 Preliminary
Chapter – NIA 02 Of Notes Bills and Cheques
Chapter – NIA 03 Parties to Notes Bills and Cheques
Chapter – NIA 04 Of Negotiation
Chapter – NIA 05 Of Presentment
Chapter – NIA 06 Of Payment and Interest
Chapter – NIA 07 Of Discharge from Liability on Notes Bills and Cheques
Chapter – NIA 08 Of Notice of Dishonour
Chapter – NIA 09 Of Noting and Protest
Chapter – NIA 10 Of Reasonable Time
Chapter – NIA 11 Of Acceptance and Payment for Honour and Reference in Case of Need
Chapter – NIA 12 Of Compensation
Chapter – NIA 13 Special Rules of Evidence
Chapter – NIA 14 Of Crossed Cheques
Chapter – NIA 15 Of Bills in Sets
Chapter – NIA 16 Of International Law
Chapter – NIA 17 Of Penalties in Case of Dishonour of Certain Cheques for Insufficiency of Funds in the Accounts

Chapter XIII – Special Rules of Evidence

Section 118 – Presumptions as to negotiable instruments

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

  1. 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;
  2. as to date; that every negotiable instrument bearing a date was made or drawn on such date;
  3. as to time of acceptance; that every accepted bill of exchange was accepted within a reasonable time after its date and before its maturity;
  4. as to time of transfer; that every transfer of a negotiable instrument was made before its maturity;
  5. as to order of indorsements; that the indorsements appearing upon a negotiable instrument were made in the order in which they appear thereon;
  6. as to stamp; that a lost promissory note, bill of exchange or cheque was duly stamped;
  7. 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 obtained from its lawful owner, or from any person in lawful custody thereof, by means of an SP offence or fraud, or has been obtained from the maker or acceptor thereof by means of an offence or fraud, or for unlawful consideration, the burthen of proving that the holder is a holder in due course lies upon him.

Section 119 – Presumption on proof of protest

In a suit upon an instrument which has been dishonoured, the Court shall, on proof of the protest, presume the fact of is dishonour, unless and until such fact is disproved.

Section 120 – Estoppel against denying original validity of instrument

No maker of a promissory note, and no drawer of a bill of exchange or cheque, and no acceptor of a bill of exchange for the honour of the drawer shall, in a suit thereon by a holder in due course, be permitted to deny the validity of the instrument as originally made or drawn.

Section 121 – Estoppel against denying capacity of payee to indorse

No maker of a promissory note and no acceptor of a bill of exchange payable to order shall, in a suit thereon by a holder in due course, be permitted to deny the payee’s capacity, at the date of the note or bill, to indorse the same.

Section 122 – Estoppel against denying signature or capacity of prior party

No indorser of a negotiable instrument shall, in a suit thereon by a subsequent holder, be permitted to deny the signature or capacity to contract of any prior party to the instrument.

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Negotiable Instruments Act Chapter 13 Special Rules of Evidence Bare Act