MOIDEENKUTTY HAJEE Vs. PAPPU MANJOORAN

JUDGEMENT

(1.) Impleadment allowed.

(2.) The facts in support thereof are that the first respondent as a general power of attorney had entered into an agreement of sale, Ex. B1, to sell 35 acres of land for a total consideration of Rs. 10 lakhs. In furtherance thereof, on paying Rs. 4 lakhs as part consideration, 10 acres of land was put in possession of the appellant. On the appellant requiring additional land and as he did not have cash with him had executed promissory note, Ex. A1, for a sum Rs. 1.50 lakhs and in furtherance thereof possession of three acres and forty four cents of land and building was given to the appellant. It is not necessary for us to proceed further in this matter relating to Ex. B1 for the reason that Ex. B1 has fallen through and the contract has not been completed.

(3.) Chapter VIII of the Negotiable Instruments Act, 1881 (for short the 'Act') provides special rules of evidence. Section 118 draws presumption as to the negotiable instruments. "Until the contrary is proved ", under clause (a) presumption shall be made of consideration that every negotiable instrument was made or drawn for consideration, and that every such instrument when it has been accepted, endorsed, negotiated or transferred, was accepted endorsed, negotiated or transferred for consideration.