This section lists assumptions the court makes about negotiable instruments (like cheques and promissory notes) unless proven otherwise. For example, it's assumed the instrument was created for a valid reason, and that the person holding it is the rightful owner.
A gives B a cheque. The court will assume A gave it for a valid reason (like a debt) unless A can prove otherwise. The court will also assume B is the rightful owner.
- •You can use these presumptions to your advantage in a legal case.
- •If someone claims a negotiable instrument is invalid, they have to prove it.
📒 Legal text sourced from The Gazette of India & AdvocateKhoj Bare Acts Library
⚖️ Content reviewed by Adv. Shailendra Babbar, Seasoned Advocate, with 31 years of legal practice
📚 Act Reference: Negotiable Instruments Act
Disclaimer: This content is for informational purposes only and does not constitute legal advice. Consult a qualified advocate for specific legal matters.