Negotiation by indorsement
Full Text
Negotiation by indorsement.—Subject to the provisions of section 58, a promissory note, bill of exchange or cheque payable to order, is negotiable by the holder by indorsement and delivery thereof.
Plain English Summary
States that order instruments are negotiated by the holder through endorsement followed by delivery, subject to Section 58.
Key Legal Elements
- Applies to promissory notes, bills of exchange, or cheques payable to order
- Requires both endorsement by the holder and delivery to be negotiated
- Subject to Section 58
Practical Note
Crucial rule for order instruments. Unlike bearer instruments which can be negotiated by mere delivery, order instruments require BOTH endorsement (signature of holder) and delivery to transfer the legal title and rights.
हिंदी पाठ
पृष्ठांकन द्वारा परक्रामण।—धारा 58 के उपबंधों के अधीन रहते हुए, आदेशानुसार देय (payable to order) कोई वचन-पत्र, विनिमय-पत्र या चेक धारक द्वारा उसके पृष्ठांकन (indorsement) और परिदान (delivery) द्वारा ही परक्राम्य होता है।