Presumption of consideration for signed promissory notes stands unless rebutted by cogent evidence, even where blanks were later filled.

A promissory note supported by an earlier debt remained enforceable where the makers admitted their signatures but denied consideration and execution. Past consideration was sufficient for a fresh promise under the Contract Act, and a signed instrument could be completed within the stamp value under Section 20 of the Negotiable Instruments Act. Once signature was admitted, the presumption of consideration under Section 118 arose in favour of the holder. The defendants failed to produce cogent rebuttal evidence, and the materials relied on did not displace the statutory presumption or make the transaction improbable.

---

---

Issues: Whether a promissory note executed on the basis of an earlier debt and signed in blank could be enforced when the defendants admitted their signatures but disputed consideration and execution.

Analysis: Past consideration is valid for a fresh promise under the Contract Act, and an acknowledgment or fresh promissory note supported by an earlier liability is not invalid merely because no fresh money passed on the date of execution. Section 20 of the Negotiable Instruments Act permits the holder of a signed instrument to complete the blanks within the value of the stamp. Once the defendants admitted their signatures on the promissory note, the presumption under Section 118 arose in favour of consideration. The defendants did not adduce sufficient evidence to rebut that presumption. The letter relied on by the defendants did not displace the statutory presumption or establish that the transaction was improbable.

Conclusion: The promissory note was held to be a valid promissory note supported by past consideration, and the defendants failed to rebut the statutory presumption of consideration.

Final Conclusion: The first appellate decree was sustained because the statutory presumptions under the Negotiable Instruments Act were not displaced by the defendants' evidence.

Ratio Decidendi: Where the maker admits signatures on a promissory note, the presumption of consideration under Section 118 of the Negotiable Instruments Act operates, and it can be displaced only by cogent rebuttal evidence; a signed blank or incompletely filled instrument may still be enforceable under Section 20 when supported by past consideration.

---