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CS Executive · Jurisprudence, Interpretation and General Laws · Law relating to Negotiable Instruments

In an Indian court, a party relies on a bill of exchange governed by the law of a foreign country but leads no evidence on what that country's law says about bills of exchange. What does the Negotiable Instruments Act, 1881 say about the foreign law?

The foreign law is presumed to be the same as Indian law until the contrary is proved. Section 137 creates this rebuttable presumption for promissory notes, bills of exchange and cheques, so the claim does not fail merely because no evidence of foreign law was led.

  1. AThe court must dismiss the claim for want of proof of foreign law
  2. BThe foreign law is presumed to be the same as Indian law until the contrary is provedCorrect
  3. CThe foreign law is presumed to be more favourable to the holder
  4. DThe foreign law is presumed to be the law of England

Explanation

Section 137 presumes that the law of a foreign country on promissory notes, bills of exchange and cheques is the same as that of India unless and until the contrary is proved. Thus the claim need not fail merely because no evidence was led. The presumption is rebuttable.

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