Negotiable Instruments Act Section 51 — Who may negotiate

CHAPTER IV OF NEGOTIATION

General

Summary

Anyone who is the sole maker, drawer, payee, or indorsee of a negotiable instrument—or all of the people together if there are several joint makers, drawers, payees, or indorsees—can endorse and negotiate that instrument, as long as its negotiability has not been restricted or excluded under section 50. However, this does not allow a maker or drawer to endorse or negotiate the instrument unless they are in lawful possession of it or are the holder, and it does not allow a payee or indorsee to do so unless they are the holder.

Official Text

Every sole maker, drawer, payee or indorsee, or all of several joint makers, drawers, payees or indorsees, of a negotiable instrument may, if the negotiability of such instrument has not been restricted or excluded as mentioned in section 50, indorse and negotiate the same.

Explanation.—Nothing in this section enables a maker or drawer to indorse or negotiate an instrument, unless he is in lawful possession or is holder thereof; or enables a payee or indorsee to indorse or negotiate an instrument, unless he is holder thereof.