RAB NAWAZ KHAN vs JAVED KHAN SWATI Ss — 2021 CLD 1261 SUPREME-COURT

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RAB NAWAZ KHAN VS JAVED KHAN SWATI Ss. 6, 22 & 118---Civil Procedure Code (V of 1908), O. XXXVII---Summary suit--- Cheque, issuance of---Whether cheque was issued by respondent for consideration or merely as an acknowledgment/receipt for investment made by him---Held, that it was a well-established principle that a cheque was intended to be for immediate payment---In ordinary circumstances cheques were exchanged between the parties for the purpose of immediate payment---Cheque was not even entitled to days of grace, as in the case of promissory notes and bills of exchange---Presumption that every negotiable instrument was made/drawn for consideration was however rebuttable---Burden to rebut said presumption laid upon the party arguing that the negotiable instrument had not been made/drawn for consideration---Such presumption was not rebutted by a bare denial of the passing of the consideration----To disprove the presumption the defendant (person who had issued the cheque/negotiable instrument) had to bring on record such facts and circumstances, upon consideration of which the court may either believe that the consideration did not exist or its non-existence was so probable that a prudent man would, under the circumstances of the case, shall act upon the plea that it did not exist---In the present case the respondent (who had issued the cheque) provided a bare denial as his defence, and produced no independent evidence to support his plea that cheque was issued by him merely as a receipt---Furthermore no protest was lodged by the respondent when the appellant presented the cheque for encashment to a bank, which returned the cheque with the remark 'refer to drawer'---Respondent re-validated the cheque but it was again declined by the bank with the same remark---If respondent's plea that cheque was issued merely as a receipt was accepted, then question was as to what was the purpose behind revalidating the cheque---Only reasonable explanation for this was that cheque was issued and revalidated by the respondent so that appellant could recover his amount owed to him by the respondent---Appeal was allowed and summary suit filed by appellant for recovery of his amount was decreed.

RAB NAWAZ KHAN vs JAVED KHAN SWATI Ss — 2021 CLD 1261 SUPREME-COURT

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