Which of the following is NOT a presumption about a negotiable instrument?

Correct option is D

Under the Negotiable Instruments Act, 1881, Section 118 outlines various presumptions regarding negotiable instruments unless proven otherwise. These include:
1. Date – It is presumed that every negotiable instrument is dated, unless the contrary is proved. Hence, this is a presumption under the Act.
2. Consideration – Every negotiable instrument is presumed to have been made for consideration, unless evidence shows otherwise.
3. Stamp – There is no automatic presumption that a negotiable instrument is properly stamped. If stamping is required, it must be legally verified.
4. Absolute and good title to the transferee – The law does not presume that every transferee acquires an absolute and good title. If a person receives an instrument with defects in title, they may not have full legal ownership.
Information Booster:
1. Section 118 of the Negotiable Instruments Act, 1881, lays down the presumptions related to negotiable instruments.
2. Holder in due course enjoys special rights, but this status is not presumed and must be proven.
3. The Act presumes consideration, date, and time of acceptance or transfer, unless evidence suggests otherwise.
4. The burden of proof lies on the party challenging these presumptions.
5. Stamping is a legal requirement in certain cases but is not a statutory presumption under Section 118.
6. If an instrument is obtained fraudulently, a transferee cannot claim an automatic right to it unless they qualify as a holder in due course.