01 April 2015
M, who finds a cheque payable to bearer, on road and retains it.
can M be called as "holder" under Negotiable Instrument Act
give reason also
01 April 2015
No. M cannot be called as ‘Holder’ . As per Section 8 of N I Act 1881, Holder of Negotiable Instrument means any person entitled in his own name to the possession of it, and to receive or recover the amount due thereon. Here in instant case M is not entitled in his own name to hold this instrument as he found the same from the roadside, and as such can not enforce the payment.
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