Burden of proof is on defendant when it is pleaded that promissory note is forged document

Law of evidence - Burden of proof - Shifting thereof - Present appeal filed for challenging order whereby, suit was decreed by shifting burden of proof on Appellant - Whether burden of proof was rightly shifted on Appellant - Held, Respondent sought for recovery of amount from Appellant based on suit Promissory Note executed by Appellant - However, Appellant had denied execution of said suit Promissory Note - Not stopping with that, Appellant had gone to extent of alleging that suit Promissory Note was rank forgery - Initial burden was on Respondent to establish execution of Promissory Note as Appellant contended that suit Promissory Note was forged one - Burden of proof lies upon person who has to prove fact and it never shifts - Thus, in present case based on pro-note burden of proof was on Respondent to prove execution - Once burden was discharged, onus shifted on Respondent - Such shifting of onus was continuous process in evaluation of evidence - Thus, in suit based on pro-note once Respondent had been able to create high degree of probability onus shifts on Respondent - Therefore, burden of proof was rightly shifted on Appellant - Appeal dismissed. [para 9 ] 

Banking - Promissory note - Validity thereof - Section 118 of Negotiable Instruments Act, 1881 - Present appeal filed for challenging order whereby, suit for recovery of amount was decreed on basis of promissory note by presuming under Section 118 of Act that promissory note was valid - Whether Court rightly decreed suit by presuming under Section 118 of Act that promissory note was valid - Held, Appellant contended that promissory note was forged - Appellant failed in his attempt to establish that signature found in suit Promissory Note was forged one - Appellate Court had drawn presumption that signature was true and genuine and drew presumption under Section 118 of Act and decreed suit - Therefore, Appellate Court rightly decreed suit by holding validity of promissory note - Appeal dismissed. [para 11]

Madras High Court

Chenna Naicker vs Mara Naicker on 16 October, 2014