Negotiable Instruments Act Section 48 — Negotiation by indorsement

CHAPTER IV OF NEGOTIATION

General

Summary

A promissory note, bill of exchange, or cheque that is payable to a specific person or their order can be transferred to someone else by the holder. This transfer happens through endorsement, which means signing the instrument, and then physically handing it over to the new holder. This rule applies unless the situation falls under the conditions mentioned in section 58 of the same Act.

Official Text

Subject to the provisions of section 58, a promissory note, bill of exchange or cheque 1[payable to order], is negotiable by the holder by indorsement and delivery thereof.