118. Presumptions as to negotiable instruments.—

Until the contrary is proved, the following presumptions shall be made:—

(a) of consideration:—

that every negotiable instrument was made or drawn for consideration, and that every such instrument, when it has been accepted, indorsed, negotiated or transferred, was accepted, indorsed, negotiated or transferred for consideration;

(b) as to date:—

that every negotiable instrument bearing a date was made or drawn on such date;

(c) as to time of acceptance:—

that every accepted bill of exchange was accepted within a reasonable time after its date and before its maturity;

(d) as to time of transfer:—

that every transfer of a negotiable instrument was made before its naturity;

(e) as to order of indorsements:—

that the indorsements appearing upon a negotiable instrument were made in the order in which they appear then on;

(f) as to stamp:—

that a lost promissory note, bill of exchange or cheque was duly stamped;

(g) that holder is a holder in due course:—

that the holder of a negotiable instrument is a holder in due course: provided that, where the instrutment has been obtained from its lawful owner, or from any person in lawful custody thereof, by means of an offence or fraud, or has been obtained from the maker or acceptor thereof by means of an offence or fraud, or for unlawful consideration, the burden of proving that the holder is a holder in due course lies upon him.

119. Presumption on proof of protest.—

Ina suit upon an instrument which has been dishonoured, the Court shall, on proof of the protest, presume the fact of dishonour, unless and until such fact is disproved.

120. Estoppel against denying original validity of instrument.—

No maker of a promissory note, and no drawer of a bill of exchange or cheque, and no acceptor of a bill of exchange for the honour of the drawer shall, in a suit thereon by a holder in due course, be permitted to deny the validity of the instrument as originally made or drawn.

121. Estoppel against denying capacity of payee to indorse.—

No maker of a promissory note and no acceptor of a bill of exchange 2 [payable to order] shall, in a suit thereon by a holder in due course, be permitted to deny the payee's capacity, at the date of the note or bill, to indorse the same.

122. Estoppel against denying signature or capacity of prior party.—

No indorser of a negotiable instrument shall, in a suit thereon by a subsequent holder, be permitted to deny the signature or capacity to contract of any prior party to the instrument.