Holder of first acquired part entitled to all
Full Text
Holder of first acquired part entitled to all.—As between holders in due course of different parts of the same set, he who first acquired title to his part is entitled to the other parts and the money represented by the bill.
Plain English Summary
Resolves conflicting claims between holders of different parts of a bill set by awarding priority and the underlying money to the person who acquired title first.
Key Legal Elements
- Applies when different parts of the same set are held by different holders in due course
- Priority rule: the holder who first acquired title to their part prevails
- Prevailing holder is entitled to all other parts and the money represented by the bill
Practical Note
Applies the equitable maxim 'prior in time is stronger in law' to negotiable instruments in sets. When fraudulent negotiation splits parts between innocent bona fide purchasers, the first person who acquired valid title in time owns the underlying debt and can demand surrender of the remaining parts.
हिंदी पाठ
पहले अर्जित भाग का धारक सभी भागों का हकदार होना।—एक ही सैट के विभिन्न भागों के सम्यक्-अनुक्रम-धारकों के बीच, जिसने अपने भाग पर सबसे पहले हक अर्जित किया है, वह अन्य भागों का और उस बिल द्वारा दर्शित धन का हकदार होता है।