Indorsement for part of sum due
Full Text
Indorsement for part of sum due.—No writing on a negotiable instrument is valid for the purpose of negotiation if such writing purports to transfer only a part of the amount appearing to be due on the instrument; but where such amount has been partly paid, a note to that effect may be indorsed on the instrument, which may then be negotiated for the balance.
Plain English Summary
Declares that partial endorsements transferring only a portion of the due amount are invalid for negotiation, unless the instrument notes a previous partial payment, allowing negotiation of the balance.
Key Legal Elements
- Endorsement purporting to transfer only a part of the due sum is invalid for negotiation
- Allows endorsement showing partial payments already received
- The instrument can be validly negotiated for the remaining balance after noting the partial payment
Practical Note
Prevents splitting of legal actions. A holder cannot endorse a Rs. 10,000 cheque as 'Pay A Rs. 5000 and B Rs. 5000' or 'Pay A Rs. 6000'. However, if the debtor has already paid Rs. 4,000, the holder can write 'Rs. 4,000 paid; balance Rs. 6,000' on the cheque and endorse it to transfer the remaining Rs. 6,000.
हिंदी पाठ
देय राशि के एक भाग के लिए पृष्ठांकन।—परक्राम्य लिखत पर लिखा गया कोई भी लेख परक्रामण (negotiation) के प्रयोजन के लिए वैध नहीं है यदि वह लिखत पर देय दिखाई देने वाली राशि के केवल एक भाग को हस्तांतरित करने का इरादा रखता है; लेकिन जहां ऐसी राशि का आंशिक रूप से भुगतान कर दिया गया है, उस आशय का एक नोट लिखत पर पृष्ठांकित किया जा सकता है, जिसे बाद में शेष राशि के लिए परक्रामित किया जा सकता है।