NIA 35 — Liability of indorser

Negotiable Instruments Act, 1881

Statutory text

In the absence of a contract to the contrary, whoever indorses and delivers a
negotiable instrument  before  maturity  without,  in  such  it  indorsement,  expressly  excluding  or  making
conditional  his  own  liability,  is  bound  thereby  to  every  subsequent  holder,  in  case  of  dishonour  by  the
drawee,  acceptor  or  maker,  to  compensate  such  holder  for  any  loss  or  damage  caused  to  him  by  such
dishonour, provided due notice of dishonour has been given to, or received by, such indorser as hereinafter provided.
Every indorser after dishonour is liable as upon an instrument payable on demand.

Back to NIA