What is presumption under section 118?
Asked by: Laury Greenholt | Last update: April 19, 2026Score: 4.9/5 (59 votes)
Section 118 of India's Negotiable Instruments Act, 1881, creates a rebuttable legal presumption that every negotiable instrument (like a cheque, promissory note, or bill of exchange) was made for valid consideration (value), drawn on the date shown, and transferred before maturity, shifting the burden of proof to the defendant to disprove these facts with strong evidence.
What are the presumptions of Section 118?
118. Presumptions as to negotiable instruments. (a) of consideration; (b) as to date; (c) as to time of acceptance; (d) as to time of transfer; (e) as to order of indorsements; (f) as to stamp; (g) that holder is a holder in due course; 119.
What is the meaning of section 118?
IPC Section 118 - Concealing design to commit offence punishable with death or imprisonment for life | Devgan.in.
What are the presumptions of the negotiable instrument Act?
Every holder of a negotiable instrument is presumed to have paid consideration for it and to have taken it in good faith. But if the instrument was obtained from its lawful owner by means of an offence or fraud, the holder has to prove that he is a holder in due course.
What is the presumption on proof of protest?
In a suit upon an instrument which has been dishonoured, the Court shall, on proof of the protest, presume the fact of is dishonour, unless and until such fact is disproved.
Presumptions | Section 118 | Negotiable Instrument Act
What is the law of presumption?
Presumption: meaning of
It is a rule which treats an unknown fact as proved on proof or admission of certain other facts. It means a rule of law that Courts shall draw a particular inference from a particular fact or from a particular evidence, unless and until the truth of such inference is disproved.
What are the different types of presumptions?
In law, a presumption is an "inference of a particular fact". There are two types of presumptions: rebuttable presumptions and irrebuttable (or conclusive) presumptions.
What is Section 118 of the negotiable instrument Act case law?
118(a) of the Act, there is a presumption that every negotiable instrument was made or drawn for consideration. Even though the presumption available under S. 118(a) is a rebuttable presumption, the respondent has not cared to rebut that presumption and to adduce any evidence in support of the case pleaded by him.
How to rebut the presumption under the NI Act?
The standard of proof for rebutting the presumption is that of preponderance of probabilities. (iii) To rebut the presumption, it is open for the accused to rely on evidence led by him or accused can also rely on the materials submitted by the complainant in order to raise a probable defence.
What is the difference between Section 118 and 139 of the NI Act?
This Court is of the view that once the execution of the cheque is admitted, the presumption under Section 118 of the NI Act that the cheque in question was drawn for consideration and the presumption under Section 139 of the NI Act that the holder of the cheque received the said cheque in discharge of a legally ...
What is the violation of Section 118?
Whoever intending to facilitate or knowing it to be likely that he will thereby facilitate the commission of an offence punishable with death or imprisonment for life; voluntarily conceals by any act or omission or by the use of encryption or any other information hiding tool, the existence of a design to commit such ...
What is the purpose of section 118?
All contracts of sale or sales by trust deed, for the purpose of housing for persons and families of low or moderate income shall bear interest.
What is the SEC 118 of evidence?
All persons shall be competent to testify unless the Court considers that they are prevented from understanding the questions put to them, or from giving rational answers to those questions, by tender years, extreme old age, disease, whether of body or mind, or any other cause of the same kind. Explanation.
What is a reasonable presumption in law?
This means that you must start with the presumption that the defendant is innocent. This presumption continues throughout the trial and entitles the defendant to a verdict of not guilty unless you are satisfied beyond a reasonable doubt that [he/she] is guilty.” M Crim JI 3.2(1).
What is not legally enforceable debt?
If for example, the cheque was drawn in respect of a debt or liability payable under a wagering contract, it could have been said that that debt or liability is not legally enforceable as it is a claim, which is prohibited under law.
Is section 118 bailable or not?
Offence : Voluntarily causing grievous hurt by dangerous weapons or means [except as provided in section 122(2)]. Punishment : Imprisonment for life or imprisonment of not less than 1 year but which may extend to 10 years and fine. Cognizable or Non-cognizable : Cognizable. Bailable or Non-bailable : Non-bailable.
Is presumption under section 118 NI Act rebuttable?
The presumption under Section 118 of the NIA is a rebuttable presumption of law, i.e., a mandatory presumption that can be proved contrary. There are two meanings of the burden of proof, one is the matter of law and pleading and the other is the burden of establishing the case.
How to rebut a presumption?
A legal presumption must be rebutted by clear and convincing evidence (more than a mere likelihood) supporting a different conclusion. This higher standard of proof requires evidence sufficient to convince a judge with reasonable certainty that the evidence weighs in favor of reaching that different conclusion.
Can I escape from a cheque bounce case?
File a Petition to Quash the Case (Section 482 CrPC)
The accused can approach the High Court to quash the complaint if it is frivolous, malicious, or does not meet the legal criteria under Section 138.
Is section 118 still in effect?
The TCJA effectively repealed section 118 as applied to non-shareholder contributions to capital. As a consequence, nearly all cash grants received either from a governmental entity or from a civic organization will now be included in taxable income.
What legal cases involve section 118?
An oath is described as an affirmation or other method that is authorized by law to affirm the truth of a statement. PC 118 perjury laws apply to testimony in a courtroom or during a civil deposition, statements made in a sworn affidavit and declaration, and facts that are submitted in a driver's license application.
What is the presumption of a negotiable instrument?
Consideration: It is presumed that every negotiable instrument was made drawn, accepted or endorsed for consideration. 2. Date: Every negotiable instrument is presumed to have been made or drawn on the date which it bears. 3.
How can a presumption be challenged in court?
Rebuttable presumptions are assumptions that can be challenged and overturned by presenting sufficient evidence to the contrary. For example, the presumption that a child born to a married woman is the child of her husband can be rebutted by evidence indicating another man as the biological father.
Is a presumption considered evidence?
Even though evidence contradicting the presumption is offered, a presumption is considered sufficient evidence of the presumed fact to be considered by the jury.
What is the legal meaning of presumption?
presumption. n. a rule of law which permits a court to assume a fact is true until such time as there is a preponderance (greater weight) of evidence which disproves or outweighs (rebuts) the presumption.