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The Negotiable Instruments Act, 1881: page 25

The Negotiable Instruments Act, 1881, India Code delivered snapshot ed3e9db7f37052a1, physical page 25. Unreviewed extraction.

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         (b) when the person charged resides at a place different from that at which the instrument was
     payable, the holder is entitled to receive such sum at the current rate of exchange between the two
     places;
         (c) an indorser who, being liable, has paid the amount due on the same is entitled to the amount
     so paid with interest at 1[eighteen per centum] per annum from the date of payment until tender or
     realization thereof, together with all expenses caused by the dishonour and payment;
         (d) when the person charged and such indorser reside at different places, the indorser is entitled to
     receive such sum at the current rate of exchange between the two places;
         (e) the party entitled to compensation may draw a bill upon the party liable to compensate him,
     payable at sight or on demand, for the amount due to him, together with all expenses properly
     incurred by him. Such bill must be accompanied by the instrument dishonoured and the protest
     thereof (if any). If such bill is dishonoured, the party dishonouring the same is liable to make
     compensation thereof in the same manner as in the case of the original bill.
                                                          CHAPTER XIII
                                                  SPECIAL RULES OF EVIDENCE
    118. Presumptions as to negotiable instruments.—Until the contrary is proved, the following
presumptions shall be made:—
                                                                                      e
                                                                              od
         (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;
                                                                       aC
          (b) as to date:—that every negotiable instrument bearing a date was made or drawn on such date;
                                                                 di
         (c) as to time of acceptance:—that every accepted bill of exchange was accepted within a
                                                           In
     reasonable time after its date and before its maturity;
         (d) as to time of transfer:—that every transfer of a negotiable instrument was made before its
     naturity;
        (e) as to order of indorsements:—that the indorsements appearing upon a negotiable instrument
     were made in the order in which they appear then on;
          (f) as to stamp:— 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 instrutment has been obtained from its lawful owner, or from
     any person in lawful custody thereof, by means of an 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 burden
     of proving that the holder is a holder in due course lies upon him.
    119. Presumption on proof of protest.—Ina suit upon an instrument which has been
dishonoured, the Court shall, on proof of the protest, presume the fact of dishonour, unless and until
such fact is disproved.
     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.
    121. Estoppel against denying capacity of payee to indorse.—No maker of a promissory note and
no acceptor of a bill of exchange 2[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.


1. Subs. by Act 66 of 1988, s. 3, for “six per centum” (w.e.f . 30 - 12 - 1988 ).
2. Subs. by Act 8 of 1919, s. 5, for “payable to, or to the order - of, a specified person”.




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