Law: Negotiable Instruments Act, 1881

Section: 118

Law: Code Of Civil Procedure, 1908.

Section: XXXVII, Rules 1 & 2, 96

Law: Qanun-e-Shahadat Order, 1984

Section: , 2(4) ,129(g)

Summary:
This Regular First Appeal arises from a suit for recovery of Rs.12,000,000/- based on a dishonored cheque (No. 0956536) under Order XXXVII, Rules 1 & 2 CPC. The Trial Court had decreed the suit in favor of the plaintiff/respondent. The appellants/defendants argued that the cheque was without consideration and that the plaintiff failed to provide credible evidence of payment. The key legal principle revolves around Section 118 of the Negotiable Instruments Act, 1881, which presumes consideration for a negotiable instrument but is rebuttable. After reviewing evidence, including witnesses and documentary proof, the appellate court found that the defendants successfully rebutted the presumption of consideration. The plaintiff failed to prove that the amount was paid or that the cheque was issued for valid consideration. Consequently, the appeal was allowed, and the Trial Court’s judgment was set aside.

Sections Used:

Section 118, Negotiable Instruments Act, 1881 – Presumption of consideration