Negotiable Instruments Act Section 120 — Estoppel against denying original validity of instrument

CHAPTER XIII S P E C I A L R U L E S O F E V I D E N C E

General

Summary

A person who makes a promissory note, draws a cheque or bill of exchange, or accepts a bill for the honour of the drawer cannot, in a lawsuit brought by a holder in due course, deny that the instrument was valid when it was first created or issued. This means they are legally stopped from claiming the original document was invalid in such a case.

Official Text

No maker of a promissory note, and no drawer of a bill of exchange or cheque, and no acceptor of a bill of exchange for the honour of the drawer shall, in a suit thereon by a holder in due course, be permitted to deny the validity of the instrument as originally made or drawn.