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Section 49 - Conversion of indorsement in blank into indorsement in full, Section 50 - Effect of indorsement : Negotiable Instruments Act 1881

 

 

What is Conversion of indorsement in blank into indorsement in full? What is the Effect of indorsement? Conversion of indorsement in blank into indorsement in full and Effect of indorsement are defined under Section 49 and 50 of Negotiable Instruments Act 1881

Section 49 of Negotiable Instruments Act 1881: "Conversion of indorsement in blank into indorsement in full"

The holder of a negotiable instrument indorsed in blank may, without signing his own name, by writing above the indorser's signature a direction to pay to any other person as indorsee, convert the indorsement in blank into an indorsement in full; and the holder does not thereby incur the responsibility of an indorser.

 

Section 50 of Negotiable Instruments Act 1881: "Effect of indorsement"

The indorsement of a negotiable instrument followed by delivery transfers to the indorsee the property therein with the right of further negotiation; but the indorsement may, by express words, restrict or exclude such right, or may merely constitute the indorsee an agent to indorse the instrument, or to receive its contents for the indorser, or for some other specified person.

Illustrations

B signs the following indorsements on different negotiable instruments payable to bearer :-

(a) "Pay the contents to C only".

(b) "Pay C for my use."

(c) "Pay C or order for the account of B."

(d) "The within must be credited to C."

These indorsements exclude the right of further negotiation by C.

(e) "Pay C."

(f) "Pay C value in account with the Oriental Bank."

(g) "Pay the contents to C, being part of the consideration in a certain deed of assignment executed by C to the indorser and others."

These indorsements do not exclude the right of further negotiation by C.

 

Negotiable Instruments Act 1881

Section 41 - Acceptor bound, although, indorsement forged

Section 42 - Acceptance of bill drawn in fictitious name

Section 43 - Negotiable instrument made, etc., without consideration

Section 44 - Partial absence or failure of money-consideration

Section 45 - Partial failure of consideration not consisting of money

Section 45A - Holder's right to duplicate of lost bill

 

 

CHAPTER IV
OF NEGOTIATION

Section 46 - Delivery

Section 47 - Negotiation by delivery

Section - 48 Negotiation by indorsement

Section 49 - Conversion of indorsement in blank into indorsement in full

Section 50 - Effect of indorsement

 

 

Section 51 - Who may negotiate

Section 52 -Indorser who excludes his own liability or makes it conditional

Section 53 - Holder deriving title from holder in due course

Section 54 - Instrument indorsed in blank

Section 55 - Conversion of indorsement in blank into indorsement in full

Section 56 - Indorsement for part of sum due

 

 

Section 57 - Legal representative cannot by delivery only negotiate instrument indorsed by deceased

Section 58 - Instrument obtained by unlawful means or for unlawful consideration

Section 59 - Instrument acquired after dishonour or when overdue

Section 60 - Instrument negotiable till payment or satisfaction

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