Presumption of consideration in promissory note cases stands unless the defendant proves a probable defence on preponderance of probabilities.

Once execution of a promissory note is admitted, Section 118(a) of the Negotiable Instruments Act raises a rebuttable presumption of consideration. The defendant must produce material showing that non-existence of consideration is probable on a preponderance of probabilities; a bare denial or reliance on the plaintiff's lack of independent proof is insufficient. The plaintiff's failure to enter the witness box did not by itself defeat the claim because another witness was examined and execution was admitted. The defendant's circumstances were held inadequate to displace the statutory presumption, and the decree for recovery was affirmed.

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Issues: Whether the decree for recovery on the promissory note was liable to be set aside on the ground that the plaintiff did not enter the witness box, and whether the defendant had rebutted the statutory presumption of consideration arising from admission of execution of the promissory note.

Analysis: The execution of the promissory note was admitted by the defendant. In such a case, the presumption under Section 118(a) of the Negotiable Instruments Act arises that the instrument was supported by consideration. That presumption is rebuttable, but the defendant must adduce material showing that the non-existence of consideration is probable. Mere denial of consideration or evidence aimed only at showing that the other side had no independent evidence is not enough. The plaintiff's non-appearance in the witness box did not by itself defeat the claim, because another witness was examined and the execution of the promissory note stood admitted. The circumstances placed by the defendant were held insufficient to displace the statutory presumption.

Conclusion: The defendant failed to rebut the presumption of consideration, and the decree of the trial court was affirmed.

Ratio Decidendi: Once execution of a promissory note is admitted, the statutory presumption of consideration applies, and it can be displaced only by proof of a probable defence showing non-existence of consideration on a preponderance of probabilities.

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