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The lower appellate court found that the signature on Exhibit P-1 did not exist when handed over to the plaintiff by the defendant. As a result, the plaintiff could not rely on the presumption under Section 118 of the Negotiable Instruments Act. The lower appellate court held that the execution of the promissory note was not proved, and this finding cannot be challenged in a second appeal. The court also noted a missing segment in the signature on Exhibit P-1, indicating tampering. The appeal was dismissed with costs.
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