BHARAT BARREL & DRUM MFG CO. vs AMIN CHAND PAYERALAL — C.A. No. 4576/1997

Case Summary: Bharat Barrel & Drum Manufacturing Co. v. Amin Chand Payeralal Decision: Supreme Court allowed the plaintiff's appeal and decreed the suit for Rs. 6,51,900 with 6% interest, holding that the defendant failed to discharge the initial burden of disproving consideration under Section 118 of the Negotiable Instruments Act. Key Reasoning: The Court clarified that while Section 118 raises a presumption of consideration once a promissory note's execution is admitted, this is a rebuttable presumption. The defendant must bring on record facts and circumstances making non-existence of consideration probable; mere denial is insufficient. Since the defendant's evidence was rejected and he failed to establish the note was collateral security rather than a loan, the presumption favoring consideration was not rebutted, entitling the plaintiff to decree. This case analysis is maintained by casestatus.in based on publicly available court records.