INDIA BANK vs K. NATARAJA PILLAI

The Supreme Court addressed the execution of a promissory note and equitable mortgage under Section 118 of the Negotiable Instruments Act, 1881, emphasizing the statutory presumption of consideration. The Court upheld the High Court's finding that the promissory note was executed with knowledge but was void for lack of consideration regarding loans to third parties. The Court affirmed the High Court's decree for Rs. 21,616.25 in favor of the Bank, establishing that a promissory note must be supported by valid consideration to be enforceable.