Report No. 11

Chapter XII

Special Rules of Evidence

102. Presumptions as to negotiable instruments.-

Until the contrary is proved, the following presumptions shall be made:-

(a) that every instrument was made or drawn for consideration, and that every instrument, when it has been accepted, indorsed, negotiated or transferred, was accepted, indorsed, negotiated or transferred for consideration;

(b) that every instrument, acceptance or indorsement bearing a date was made or drawn on such date;

(c) that every accepted bill was accepted within a reasonable time after its date and before its maturity;

(d) that every transfer of an instrument was made before its maturity;

(e) that the indorsements appearing upon an instrument were made in the order in which they appear thereuopn;

(f) that a lost instrument was duly stamped;

(g) that the holder of an instrument is a holder in due course:

Provided that, where the instrument has been obtained from the lawful owner, or from any person in lawful custody thereof, by means of an offence or fraud, or has been obtained from the maker, drawer or acceptor thereof by means of an offence or fraud, or for unlawful consideration, the burden of proving that the holder is a holder in due course lies upon him.

[Section 1181