Law: Negotiable Instruments Act (XXVI of 1881)

Section: 118

  Negotiable Instruments Act (XXVI of 1881)-- ---S.118--Promissory note--Presumption as to passing of consideration---Words "until contrary is provided, the following presumption shall be made"- Connotation--Witness of the Bank in whose favour promissory note was executed admitted that certain entries, the amounts of which had been included in the amount shown in the promissory note which was executed subsequent to the dates of those entries which showed that the promissory note was not for the amount reflected therein and from that it could be presumed that it was without consideration---Promissory note being without consideration, suit based on such promissory note thus would not succeed--Other advances find withdrawals had been admitted by the debtor, Bank was, however entitled to money decree for the amounts found due. National Bank of Pakistan v. Messrs Ch. Ilam Din & Co. PLD 1985 Lah. 117; National Bank of Pakistan v. Messrs M.Ismail Thakur & Sons Ltd. 1988 CLC 700 and Messrs Eagle Star Insurance Co. v. Messrs Usman Sons Ltd. and others PLD 1'969 Kar. 123 ref. Transfer of Property Act (IV of 1882)-- ---S.58(f)--Mortgage--Title deeds--Neither any title deeds were deposited nor any mortgage deed was created by debtor with regard to the bungalow--Bank also failed to produce any such document which was registered under Registration Act, 1908---By mere depositing the allotment order of the plot by debtor it cannot be said that the bungalow itself had been mortgaged by debtor with the Bank. Messrs Eagle Star Insurance Co. Ltd. v. Messrs Usman Sons Ltd. and others PLD 1969 Kar. 123 ref. Akhtar Ahmad Bhutto for Appellant (in First Civil Appeal No. 21 of 1979) and for Respondent (in First Civil Appeal No. 35 of 1979). I.H. Zaidi for Respondent (in First Civil Appeal No. 21 of 1979) and for Resondent (in First Civil Appeal No. 35 of 1979). Date of hearing: 17th October, 1989. JUDGMENT By this common judgment I intend to dispose of the above two appeals, as they arise out of the same judgment passed by Ist Senior Civil Judge, Hyderabad in F.C. Suit No.129 of 1977, whereby the suit was partially decreed.   Briefly the facts are that…