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