negotiable instrument , please reply asap

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On a bil of exchange for rs. 10,000 , Sumit's acceptance to the bill is forge. Amit takes the bill from his customer in good faith and  for consideration before the bill becomes payable . State the reasons wether amit can receive the amount of the bill from sumit? 

Replies (1)

 

Based on the Quetion

With Reference to Seciton 58 Of the Act 

 

 

 

58.Instrument   obtained  by  unlawful  means  or  for   unlawful 

 consideration. When a negotiable instrument has been lost, or has been 

 obtained  from  any maker, acceptor or holder thereof by means  of  an 

 offence  or fraud, or for an unlawful consideration, no  possessor  or 

 indorsee  who claims through the person who found or so  obtained  the 

 instrument  is  entitled to receive the amount due thereon  from  such 

 maker,  acceptor  or holder, or from any party prior to  such  holder, 

 unless  such possessor or indorsee is, or some person through whom  he 

 claims was, a holder thereof in due course. 

 

If Amit has taken the Bill in Due course, He can entitle the amount from the Acceptor or the Drawer.

 

Santosh.


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