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The Negotiable Instrument Act, 1881 provides for making which of the following presumptions as a special rule of evidence, until the contrary is provided?
Correct Answer: C — That a lost promissory note, bill of exchange or cheque was duly stamped
Explanation:
The correct answer is that a lost promissory note, bill of exchange or cheque was duly stamped.
Section 118 of the NI Act, 1881 deals with presumptions as to negotiable instruments. Until the contrary is proved, presumptions shall be made as to consideration, date, time of acceptance, time of transfer, order of indorsements, stamp, and holder in due course.
Specifically, clause (f) presumes that a lost promissory note, bill of exchange or cheque was duly stamped. Options A and B state the opposite of what Section 118 actually presumes — it presumes instruments were made on their date and transfers were made before maturity.