Instrument obtained by unlawful means or for unlawful consideration
Chapter 4: Of negotiation
When a negotiable instrument has been lost, or has been obtained from any maker, acceptor or holder thereof by means of an offence or fraud, or for an unlawful consideration, no possessor or indorsee who claims through the person who found or so obtained the instrument is entitled to receive the amount due thereon from such maker, acceptor or holder, or from any party prior to such holder, unless such possessor or indorsee is, or some person through whom he claims was, a holder thereof in due course.
The Negotiable Instruments Act, 1881 (Act No. 26 of 1881). From the updated text on India Code, with later amendments. Being checked against the official copy; amendment notes are not shown yet.
Related sections
- 54Instrument indorsed in blank
- 55Conversion of indorsement in blank into indorsement in full
- 56Indorsement for part of sum due
- 57Legal representative cannot by delivery only negotiate instrument indorsed by deceased
- 59Instrument acquired after dishonour or when overdue
- 60Instrument negotiable till payment or satisfaction