Estoppel against denying original validity of instrument
Full Text
Estoppel against denying original validity of instrument.—No maker of a promissory note, and no drawer of a bill of exchange or cheque, and no acceptor of a bill of exchange for the honour of the drawer shall, in a suit thereon by a holder in due course, be permitted to deny the validity of the instrument as originally made or drawn.
Plain English Summary
Estops the maker, drawer, or acceptor for honour from challenging the original validity of the instrument against a holder in due course.
Key Legal Elements
- Applies to makers, drawers, and acceptors for honour
- Enforceable in suits filed by a holder in due course
- Statutory estoppel against denying original validity of instrument as made or drawn
Practical Note
Protects bona fide holders who acquire instruments for value in normal commercial circulation. A drawer cannot plead against a holder in due course that the instrument was originally executed without authority, under mistake, or as an accommodation instrument.
हिंदी पाठ
लिखत की मूल विधिमान्यता से इनकार करने के विरुद्ध विबंध।—वचन-पत्र के किसी रचयिता, विनिमय-पत्र या चेक के किसी आहर्ता, और आहर्ता के साखार्थ विनिमय-पत्र के किसी प्रतिग्रहीता को, सम्यक्-अनुक्रम-धारक द्वारा उस पर लाए गए वाद में, लिखत की उस रूप में विधिमान्यता से इनकार करने की अनुमति नहीं दी जाएगी जिस रूप में वह मूलतः रचित या आहृत की गई थी।