Promissory note alleged to have been executed as a collateral security and not for "value received" as mentioned therein - Failure of defendant to prove non-existence of consideration - Onus cannot be shifted on plaintiff.

Citation

AIR 1999 SUPREME COURT 1008

SUPREME COURT

(From : 1996 (2) Cal HN 327)

V. N. KHARE , J. and R. P. SETHI , J.

Civil Appeal No. 4576 of 1997, D/- 18 - 2 - 1999

Bharat Barrel and Drum Manufacturing Company Appellant v. Amin Chand Payrelal Respondent.

Negotiable Instruments Act (26 of 1881), S.118 - Promissory note - Presumption as to

consideration - Burden of proof - Promissory note alleged to have been executed as a collateral

security and not for "value received" as mentioned therein - Failure of defendant to prove non-

existence of consideration - Onus cannot be shifted on plaintiff - Claim made by plaintiff has

to be allowed even if evidence adduced by plaintiff is found to be unbelievable in rebuttal of

defendant's case.

(1996) 2 Cal HN 327, Reversed.