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Holder in due course

Tejas Jasoriya (CPT clear) (284 Points)

12 October 2015

What is meant by holder in due course??

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Kushagra Gupta (Student CA IPC / IPCC) (83 Points)
Replied 12 October 2015

When a person who is a debtor pays off his debts of his creditors by making some frauds like by endorsing Bill of Exchange which was not in his name but signed as fraud then the creditor will automatically become Holder in Due Course where he will get a good title to negotiable instrument even though the title of transferor is defective and also he can sue the drawer for the recovery of amount.