118. Presumptions as to negotiable instruments.—Until the contrary is proved, the following
presumptions shall be made:—
(a) of consideration:—that every negotiable instrument was made or drawn for consideration,
and that every such instrument, when it has been accepted, indorsed, negotiated or transferred, was
accepted, indorsed, negotiated or transferred for consideration;
(b) as to date:—that every negotiable instrument bearing a date was made or drawn on such date;
(c) as to time of acceptance:—that every accepted bill of exchange was accepted within a
reasonable time after its date and before its maturity;
(d) as to time of transfer:—that every transfer of a negotiable instrument was made before its
naturity;
(e) as to order of indorsements:—that the indorsements appearing upon a negotiable instrument
were made in the order in which they appear then on;
(f) as to stamp:— that a lost promissory note, bill of exchange or cheque was duly stamped;
(g) that holder is a holder in due course:—that the holder of a negotiable instrument is a holder
in due course: provided that, where the instrutment has been obtained from its lawful owner, or from
any person in lawful custody thereof, by means of an offence or fraud, or has been obtained from the
maker 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.
119. Presumption on proof of protest.—Ina suit upon an instrument which has been
dishonoured, the Court shall, on proof of the protest, presume the fact of dishonour, unless and until
such fact is disproved.
120. Estoppel against denying original validity of instrument.—No maker of a promissory note,
and no drawer of a bill of exchange or cheque, and no acceptor of a bill of exchange for the honour of the
drawer shall, in a suit thereon by a holder in due course, be permitted to deny the validity of the
instrument as originally made or drawn.
121. Estoppel against denying capacity of payee to indorse.—No maker of a promissory note and
no acceptor of a bill of exchange 2
[payable to order] shall, in a suit thereon by a holder in due course, be
permitted to deny the payee's capacity, at the date of the note or bill, to indorse the same.
1. Subs. by Act 66 of 1988, s. 3, for “six per centum” (w.e.f . 30 - 12 - 1988 ).
2. Subs. by Act 8 of 1919, s. 5, for “payable to, or to the orderof, a specified person”.
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122. Estoppel against denying signature or capacity of prior party.—No indorser of a negotiable
instrument shall, in a suit thereon by a subsequent holder, be permitted to deny the signature or capacity
to contract of any prior party to the instrument.