NIA 58 — Instrument obtained by unlawful means or for unlawful consideration

Negotiable Instruments Act, 1881

Statutory text

When a negotiable
instrument has been lost, or has been obtained from any maker, acceptor or holder thereof by means of an
offence  or  fraud,  or  for  an  unlawful  consideration,  no  possessor  or  indorsee  who  claims  through  the
person who found or so obtained the instrument is entitled to receive the amount due thereon from such
maker, acceptor or holder, or from any party prior to such holder, unless such possessor or indorsee is, or some person through whom he claims was, a holder thereof in due course.

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