Section 137 of NIA : Section 137: Presumption As To Foreign Law

Explanation using Example

Imagine an Indian exporter, Mr. Sharma, who sends goods to Mr. Lee in Singapore. Mr. Lee gives Mr. Sharma a promissory note as a promise to pay for the goods. Later, Mr. Sharma wants to sue Mr. Lee for non-payment, but the transaction is governed by Singaporean law. According to Section 137 of The Negotiable Instruments Act, 1881, the Indian court will presume that the Singaporean law concerning the promissory note is the same as Indian law, unless Mr. Lee can prove otherwise. This helps Mr. Sharma move forward with the case without needing to initially prove the foreign law's stance on promissory notes.