NIA 85 — Cheque payable to order

Negotiable Instruments Act, 1881

Statutory text

[(1)] 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.

[(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.]

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