Section 29 NI Act: Liability of legal representative signing

Negotiable Instruments Act, 1881

Section 29 NI Act at a Glance

Section 29 NI Act makes a legal representative of a deceased person personally liable when signing a promissory note, bill of exchange, or cheque, unless liability is expressly limited to the assets received as legal representative.

Section 29 NI Act Bare Act Text

29. Liability of legal representative signing.

A legal representative of a deceased person who signs his name to a promissory note, bill of exchange or cheque is liable personally thereon unless he expressly limits his liability to the extent of the assets received by him as such.

Section 29 NI Act in Simple Words

Section 29 NI Act states the rule on personal liability when a legal representative of a deceased person signs a promissory note, a bill of exchange, or a cheque.

Under Section 29 NI Act, a legal representative of a deceased person who signs the legal representative's name to a promissory note, bill of exchange, or cheque is personally liable on the instrument. This applies unless the legal representative expressly limits that liability to the extent of the assets received by the legal representative as such.

When Section 29 NI Act Applies

  • A person is a legal representative of a deceased person.
  • The legal representative signs the legal representative's name to a promissory note, bill of exchange, or cheque.
  • The legal representative is personally liable on the instrument unless the legal representative expressly limits liability to the extent of the assets received as legal representative.

Example of Section 29 NI Act

Tanvi in Rajkot is the legal representative of a deceased person. Tanvi signs Tanvi's name to a promissory note for ₹90,000 in favour of Sanjay without writing any words limiting liability. Under Section 29 NI Act, Tanvi is personally liable on the promissory note because Tanvi did not expressly limit liability to the extent of the assets received by Tanvi as legal representative. If Tanvi instead expressly limits liability on the promissory note to the extent of the assets received as the deceased person's legal representative, Tanvi is not liable beyond those assets.

FAQs on Section 29 NI Act

What is Section 29 NI Act?▼

Section 29 NI Act deals with the liability of a legal representative of a deceased person who signs a promissory note, bill of exchange, or cheque. Section 29 NI Act makes the legal representative personally liable on the instrument unless the legal representative expressly limits liability to the extent of the assets received as legal representative.

Is a legal representative of a deceased person personally liable when signing a cheque or promissory note under Section 29 NI Act?▼

Yes, unless liability is expressly limited. Under Section 29 NI Act, a legal representative who signs a promissory note, bill of exchange, or cheque is personally liable unless the legal representative expressly limits liability to the extent of the assets received as legal representative.

How can a legal representative limit personal liability when signing an instrument under Section 29 NI Act?▼

By expressly limiting liability to the deceased person's assets received. Under Section 29 NI Act, the legal representative must expressly limit liability to the extent of the assets received by the legal representative in that capacity.

Which instruments does Section 29 NI Act cover?▼

Promissory notes, bills of exchange, and cheques. Section 29 NI Act applies whenever a legal representative of a deceased person signs the legal representative's name to a promissory note, bill of exchange, or cheque.

Have questions about Section 29 NI Act?

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Disclaimer: This is for informational purposes only. Always consult a qualified advocate for legal advice.

Sources: Bare Act Text, Negotiable Instruments Act, 1881 (India Code) ·