Section 57 NI Act: Legal representative cannot by delivery only negotiate instrument indorsed by deceased

Negotiable Instruments Act, 1881

Section 57 NI Act at a Glance

Section 57 NI Act states that the legal representative of a deceased person cannot negotiate by delivery alone a promissory note, bill of exchange, or cheque payable to order that the deceased indorsed but did not deliver.

Section 57 NI Act Bare Act Text

57. Legal representative cannot by delivery only negotiate instrument indorsed by deceased.

The legal representative of a deceased person cannot negotiate by delivery only a promissory note, bill of exchange or cheque payable to order and indorsed by the deceased but not delivered.

Section 57 NI Act in Simple Words

Section 57 NI Act sets a rule for the legal representative of a deceased person when the deceased left behind an undelivered instrument. Under Section 57 NI Act, if a promissory note, bill of exchange, or cheque is payable to order and was indorsed by the deceased person, but was not delivered, the legal representative of the deceased person cannot negotiate that instrument by delivery only.

When Section 57 NI Act Applies

  • The instrument is a promissory note, bill of exchange, or cheque payable to order.
  • The instrument was indorsed by a person who is now deceased.
  • The instrument was not delivered by the deceased person.
  • The legal representative of the deceased person cannot negotiate the instrument by delivery only.

Example of Section 57 NI Act

Harish in Raipur holds a cheque for ₹40,000 payable to Harish's order. Harish indorses the cheque intending to transfer the cheque to Ajay, but Harish dies before delivering the cheque to Ajay. After Harish's death, Lakshmi, who is the legal representative of Harish, finds the indorsed cheque and hands the cheque over to Ajay without anything more. Under Section 57 NI Act, Lakshmi cannot negotiate the cheque by delivery only because the cheque payable to order was indorsed by the deceased Harish but was not delivered.

FAQs on Section 57 NI Act

What is Section 57 NI Act?▼

Section 57 NI Act provides that the legal representative of a deceased person cannot negotiate by delivery only a promissory note, bill of exchange, or cheque that is payable to order and was indorsed by the deceased but not delivered. Mere delivery by the legal representative does not negotiate that undelivered instrument.

Can a legal representative negotiate by delivery alone a cheque indorsed by the deceased but never delivered under Section 57 NI Act?▼

No. Under Section 57 NI Act, the legal representative of a deceased person cannot negotiate by delivery only a promissory note, bill of exchange, or cheque payable to order that was indorsed by the deceased but not delivered.

Which instruments are covered by Section 57 NI Act?▼

Promissory notes, bills of exchange, and cheques that are payable to order and were indorsed by the deceased person but not delivered are covered by Section 57 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) ·