Section 53 - Holder deriving title from holder in due course, Section 54 - Instrument indorsed in blank : Negotiable Instruments Act 1881

How Holder deriving title from holder in due course? What is Instrument indorsed in blank? Holder deriving title from holder in due course and Instrument indorsed in blank are defined under Section 53 and 54 of Negotiable Instruments Act 1881

 

 

Section 53 of Negotiable Instruments Act 1881: "Holder deriving title from holder in due course"

A holder of a negotiable instrument who derives title from a holder in due course has the rights thereon of that holder in due course.

 

Section 54 of Negotiable Instruments Act 1881: "Instrument indorsed in blank"

Subject to the provisions hereinafter contained as to crossed cheques, a negotiable instrument indorsed in blank is payable to the bearer thereof even although originally payable to order.