Section 59 - Instrument acquired after dishonour or when overdue, Section 60 - Instrument negotiable till payment or satisfaction : Negotiable Instruments Act 1881

What is the status of Instrument acquired after dishonour or when overdue? What is the meaning of Instrument negotiable till payment or satisfaction? Instrument acquired after dishonour or when overdue and Instrument negotiable till payment or satisfaction are defined under Section 59 and 60 of Negotiable Instruments Act 1881

Section 59 of Negotiable Instruments Act 1881: "Instrument acquired after dishonour or when overdue"

The holder of a negotiable instrument, who has acquired it after dishonour, whether by non-acceptance or non-payment, with notice thereof, or after maturity, has only, as against the other parties, the rights thereon of his transferor:

Accommodation note or bill.

Provided that any person who, in good faith and for consideration, becomes the holder, after maturity, of a promissory note or bill of exchange made, drawn or accepted without consideration, for the purpose of enabling some party thereto to raise money thereon, may recover the amount of the note or bill from any prior party.

Illustration
The acceptor of a bill of exchange, when he accepted it, deposited with the drawer certain goods as a collateral security for the payment of the bill, with power to the drawer to sell the goods and apply the proceeds in discharge of the bill if it were not paid at maturity. The bill not having been paid at maturity, the drawer sold the goods and retained the proceeds, but indorsed the bill to A. A's title is subject to the same objection as the drawer's title.

Section 60 of Negotiable Instruments Act 1881: "Instrument negotiable till payment or satisfaction"

A negotiable instrument may be negotiated (except by the maker, drawee or acceptor after maturity) until payment or satisfaction thereof by the maker, drawee or acceptor at or after maturity, but not after such payment or satisfaction