LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Negotiable Instruments Act,1881

Act No : 26


Section : Cheque payable to order.

85. 3[(1)] Cheque payable to order. Where a cheque payable to order purports to be endorsed by or on behalf of the payee, the drawee is discharged by payment in due course. --------------------------------------------------------------------- 1 Subs. by Act 12 of 1921, s. 2, for " twenty-four". 2 Subs. by Act 6 of 1897, s. 3, for the original section. 3 Renumbered as sub-section (1) of s. 85 by Act 17 of 1934, s. 2. --------------------------------------------------------------------- 31 1[(2) Where a cheque is originally expressed to be payable to bearer, the -drawee is discharged by payment in due course to the bearer thereof, notwithstanding any endorsement whether in full or in blank appearing thereon, and notwithstanding that any such endorsement purports to restrict or exclude further negotiation.] 2[85A.Drafts drawn by one branch of a bank on another payable to order. Where any draft, that is, an order to pay money, drawn by one office of a bank upon another office of the same bank for a sum of money payable to order on demand, purports to be endorsed by or on behalf of the payee, the bank is discharged by payment in due course.]


Read All Comments

Comments