Negotiable Instruments Act Section 35 — Liability of indorser
CHAPTER III PARTIES TO NOTES, BILLS AND CHEQUES.
General
Summary
Unless they have agreed otherwise, a person who signs and hands over a negotiable instrument before it is due is responsible to every later holder if the instrument is dishonoured by the main party. This responsibility applies only if the endorser did not clearly state in their endorsement that they are not liable or that their liability is conditional. The endorser must compensate the holder for any loss or damage from the dishonour, but only if proper notice of the dishonour was given to or received by the endorser. After the instrument has been dishonoured, any endorser is treated as liable just as if the instrument were payable on demand.
Official Text
In the absence of a contract to the contrary, whoever indorses and delivers a negotiable instrument before maturity without, in such it indorsement, expressly excluding or making conditional his own liability, is bound thereby to every subsequent holder, in case of dishonour by the drawee, acceptor or maker, to compensate such holder for any loss or damage caused to him by such dishonour, provided due notice of dishonour has been given to, or received by, such indorser as hereinafter provided. Every indorser after dishonour is liable as upon an instrument payable on demand.