Payment in due course
Full Text
“Payment in due course”.—“Payment in due course” means payment in accordance with the apparent tenor of the instrument in good faith and without negligence to any person in possession thereof under circumstances which do not afford a reasonable ground for believing that he is not entitled to receive payment of the amount therein mentioned.
Plain English Summary
Defines payment in due course as a good-faith, non-negligent payment made in accordance with the instrument's apparent terms to the person in possession.
Key Legal Elements
- Payment must be in accordance with the apparent tenor of the instrument
- Must be made in good faith and without negligence
- Must be paid to the person in possession of the instrument
- No reasonable grounds should exist to believe that the possessor is not entitled to the payment
Practical Note
Crucial for protecting banks and paying parties. If a bank pays a cheque in good faith and without negligence to the holder (even if the holder's title was defective), it constitutes 'payment in due course' and discharges the bank from liability.
हिंदी पाठ
“यथाविधि भुगतान”।—“यथाविधि भुगतान” (Payment in due course) से अभिप्रेत है लिखत के प्रत्यक्ष मंतव्य (apparent tenor) के अनुसार, सद्भावपूर्वक और उपेक्षा के बिना, उसका कब्जा रखने वाले किसी ऐसे व्यक्ति को भुगतान करना जिसके बारे में ऐसी परिस्थितियां न हों जो यह विश्वास करने का उचित आधार प्रदान करें कि वह उसमें उल्लिखित राशि का भुगतान प्राप्त करने का हकदार नहीं है।