Q: Discuss Section 43 of Negotiable Instrument Act, 1881 ?
Ans: Section 43 of negotiable instrument act talks of possibility of failed consideration, even after the instrument is drawn for any money consideration/liability. The onus cannot be only on accused to prove the part or full failure of consideration, simply because complainant may not come forward with the liability of evidence in his possession.
A negotiable instrument made, drawn, accepted, endorsed, or transferred without consideration, or for a consideration which fails, creates no obligation of payment between the parties to the transaction. But if any such holder has transferred the instrument to another person with consideration, such person and every subsequent person deriving title from him, may recover the amount due on such instrument from the transferor for consideration or any prior party thereto.
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