Multiple choice

The court may presume that

  1. when a document creating an obligation is in the hands of the obligor, the obligation has been discharged

  2. judicial and official acts have not been regularly performed

  3. a bill of exchange, accepted or endorsed, was accepted or endorsed for deficient consideration

  4. All these are incorrect
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A Correct answer
Explanation

Under Section 114 of the Evidence Act, courts may presume certain facts from circumstances. Illustration (a) to Section 114 states that when a document creating an obligation is in the hands of the obligor (the person who owes the obligation), the court may presume that the obligation has been discharged - it would be natural for the obligor to return such documents once their obligation is fulfilled. Options B and C describe scenarios where courts presume NEGATIVE facts (acts NOT regularly performed, deficient consideration), which are not among the standard presumptions under Section 114 illustrations.

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