Acceptance of bill drawn in fictitious name
Full Text
Acceptance of bill drawn in fictitious name.—An acceptor of a bill of exchange drawn in a fictitious name and payable to the drawer's order is not, by reason that such name is fictitious, relieved from liability to any holder in due course claiming under an indorsement by the same hand as the drawer's signature, and purporting to be made by the drawer.
Plain English Summary
Holds an acceptor of a bill drawn in a fictitious name liable to a holder in due course, provided the drawer's signature and the endorsement are in the same handwriting.
Key Legal Elements
- Applies to a bill of exchange drawn in a fictitious name and payable to drawer's order
- The acceptor cannot escape liability by claiming the drawer's name is fictitious
- The holder in due course must claim under an endorsement written in the same hand as the drawer's signature
Practical Note
Another application of estoppel. If an acceptor accepts a bill drawn in a fictitious name, they cannot later refuse to pay a holder in due course by claiming the drawer is fictitious, as long as the endorsement matches the drawer's signature style.
हिंदी पाठ
काल्पनिक नाम से लिखे गए बिल की स्वीकृति।—काल्पनिक नाम से लिखे गए और आहर्ता (drawer) के आदेश पर देय विनिमय-पत्र का स्वीकर्ता (acceptor) केवल इस कारण से दायित्व से मुक्त नहीं होता है कि वह नाम काल्पनिक है, किसी भी यथाविधि धारक (holder in due course) के प्रति जो ऐसे पृष्ठांकन के तहत दावा कर रहा है जो आहर्ता के हस्ताक्षर वाले हाथ (लिखावट) से ही किया गया है और आहर्ता द्वारा किया गया प्रतीत होता है।