Negotiable Instruments Act, 1881 – Section 118 & Code of Civil Procedure, 1908 – Section 20 – The plaintiff filed a suit for recovery of money based on dishonored cheques, claiming the defendant borrowed money and issued the cheques which bounced due to insufficient funds. The defendant denied the transaction, the signatures on the cheques, and the plaintiff’s financial capacity to lend such a large sum. The trial court dismissed the suit, doubting the plaintiff’s financial capacity and questioning the jurisdiction of the Erode court.
The High Court, in appeal, framed the issue based on the burden of proof related to Section 118 of the Negotiable Instruments Act, after considering the evidence.