https://www.taxtmi.com/caselaws?id=331714 Section 118 of the Negotiable Instruments Act, 1881 creates a presumption that a cheque is issued for consideration, and the drawer must rebut it on a preponderance of probabilities using direct or circumstantial material. Applying the burden of proof principles under the Evidence Act, the court found that the respondent did not prove payment of the alleged foreign currency amount, while the appellants did not prove that the cheques were issued only as security. The surrounding circumstances, including the timing of issuance and presentation and the absence of a contemporaneous demand for return of the cheques, supported the statutory presumption. The presumption remained unrebutted and the decree in favour of the respondent was upheld. en-us Mon, 29 Aug 2016 00:00:00 +0530 Wed, 31 Aug 2016 09:09:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=331714 Section 118 of the Negotiable Instruments Act, 1881 creates a presumption that a cheque is issued for consideration, and the drawer must rebut it on a preponderance of probabilities using direct or circumstantial material. Applying the burden of proof principles under the Evidence Act, the court found that the respondent did not prove payment of the alleged foreign currency amount, while the appellants did not prove that the cheques were issued only as security. The surrounding circumstances, including the timing of issuance and presentation and the absence of a contemporaneous demand for return of the cheques, supported the statutory presumption. The presumption remained unrebutted and the decree in favour of the respondent was upheld. Case-Laws Indian Laws Mon, 29 Aug 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=331714