Endorsement.- When the maker or holder of an negotiable instrument signs the same, otherwise than as such maker, for the purpose of negotiation, on the back or face thereof or on a slip of paper annexed thereto, or so signs for the same purpose a stamped paperintended to be completed as a negotiable instrument, he is said to indorse the same, and is called the endorser.
Here, What is the purpose to include this line:otherwise than as such maker?
What it means?
pls anyone explain.....
I dont think I can do it but I will wait for answer by some jenious
AS PER SEC.15 OF NEGOTIABLE INSTRUMENT ACT,1881 "ENDORSEMENT MEANS SIGNING ON THE FACE OR BACK OF THE NEGOTIABLE INSTRUMENT OR ON SLIP OF PAPER (ALLONGE) ANNEXED TO SUCH NEGOTIABLE INSTRUMENT BY THE HOLDER OF SUCH NEGOTIABLE INSTRUMENT FOR THE PURPOSE OF NEGOTIATING SUCH INSTUMENT ".
Hi Sridhar...one of the essentials of a negotiable instrument is that it is to be signed by the maker, so when the maker say Mr. X signes the instrument as a maker, he is not sd to be making an endorsement. but when Mr. X signes on the bk or frnt of the instrument , for the purpose of negotiation, he is said to be making an endorsement. He is then not signing as a maker of the instrument.
Any other personsi.e. the holder, when he simply signes the instrument, he is sd to hav made an endorsement. The maker must sign firstly as the maker of the instrument and then as an endorser...
i hope it is clear...
awesome... excellent answer.. thank u very much shilpa...
CAclubindia
