Suits on lost negotiable instruments
Full Text
Where the suit is founded upon a negotiable instrument, and it is proved that the instrument is lost, and an indemnity is given by the plaintiff, to the satisfaction of the Court, against the claims of any other person upon such instrument, the Court may pass such decree as it would have passed if the plaintiff had produced the instrument in Court when the plaint was presented, and had at the same time delivered a copy of the instrument to be filed with the plaint.
Plain English Summary
Enables recovery suits on lost negotiable instruments (cheques, promissory notes, bills of exchange) upon the plaintiff providing a court-approved indemnity bond protecting the debtor against third-party claims.
Key Legal Elements
- Loss of Instrument Proved: Plaintiff must prove genuine loss through police complaint or secondary evidence.
- Furnishing Indemnity Bond: Mandatory protection for the debtor against future presentation by a holder in due course.
- Decree on Parity: Court decrees claim as if the original instrument were produced.
Practical Note
Commercial Recovery Practice: 1. Procedure: File the suit accompanied by: (i) an NCR/police lost report, (ii) secondary copy of the lost cheque/note, and (iii) an 'Application under Order VII Rule 16 CPC offering Indemnity Bond against claims on lost instrument'.
हिंदी पाठ
जहां वाद किसी परक्राम्य लिखत (Negotiable Instrument) पर आधारित है, और यह साबित हो जाता है कि वह लिखत खो गई है, और वादी द्वारा ऐसी लिखत पर किसी अन्य व्यक्ति के दावों के विरुद्ध न्यायालय के समाधानप्रद रूप में क्षतिपूर्ति बंधपत्र (Indemnity) दे दिया जाता है, वहां न्यायालय ऐसी डिक्री पारित कर सकेगा जैसी वह तब करता जब वादी ने वादपत्र उपस्थापित करते समय लिखत प्रस्तुत की होती।