Section 8 - Holder, Section - 9 Holder in Due Course : Negotiable Instruments Act 1881

Who is Holder?  Who is Holder in Due Course? Holder and Holder in Due Course are defined under Section 8 and 9 of Negotiable Instruments Act 1881

 

 

Section 8 of Negotiable Instruments Act 1881: "Holder"

The "holder" of a promissory note, bill of exchange or cheque means any person entitled in his own name to the possession thereof and to receive or recover the amount due thereon from the parties thereto.

Where the note, bill or cheque is lost or destroyed, its holder is the person so entitled at the time of such loss or destruction.

 

Section 9 of Negotiable Instruments Act 1881: "Holder in Due Course"

"Holder in due course" means any person who for consideration became the possessor of a promissory note, bill of exchange or cheque if payable to bearer, or the payee or endorsee thereof, if payable to order, before the amount mentioned in it became payable, and without having sufficient cause to believe that any defect existed in the title of the person from whom he derived his title