negotiable instruments act
This query is : Resolved
Mayank Shah
(Querist)
10 April 2016
difference between holder and holder in due course
KAVIRAJA ADDANGADI
(Expert)
10 April 2016
Holder may become the possessor payee of instrument even without consideration.
Holder in due course who acquires instrument for consideration.
Holder of instrument posses negotiable instrument in his own name.
Holder in due course obtained instrument for consideration and in good faith before maturity.
Holder does not aquire better tittle than that of transferor
Holder in due course derives good title freed from all defects. His title is better than transferor.
Holder in due course who acquires instrument for consideration.
Holder of instrument posses negotiable instrument in his own name.
Holder in due course obtained instrument for consideration and in good faith before maturity.
Holder does not aquire better tittle than that of transferor
Holder in due course derives good title freed from all defects. His title is better than transferor.
Amol S Joglekar
(Expert)
10 April 2016
"In due course" is a typical terminology of Banking.
It needs to be read with "acting in good faith" and "without negligence"
So to say, a transaction during the normal course of time, in a just, fair and appropriate manner becomes "in due course" transaction.
Naturally and obviously, the parties to the said transaction also become parties "in due course"
Thus "holder in due course" is better placed as compared to "holder"
(@ Kaviraja Addangadi : I differ in one point.....No one can pass better title than himself/herself. In a limited scope, one may say that "holder in due course" has a better title then "holder")
It needs to be read with "acting in good faith" and "without negligence"
So to say, a transaction during the normal course of time, in a just, fair and appropriate manner becomes "in due course" transaction.
Naturally and obviously, the parties to the said transaction also become parties "in due course"
Thus "holder in due course" is better placed as compared to "holder"
(@ Kaviraja Addangadi : I differ in one point.....No one can pass better title than himself/herself. In a limited scope, one may say that "holder in due course" has a better title then "holder")
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