Negotioable Instruments

IPCC 1045 views 2 replies

HI FRIENDS GOOD MORNING................

Negotiable Instrument Issued in Favour of Minor is.......Valid or Void.......?

if its is Valid then in what Case it would we Void.... pls share ur Knowledge.....

 

Thanks.........

 

Replies (2)
It is Valid.. Considering the provisions of Sec.26 a Minor's position is as follows. 1. A Minor may draw, indorse, deliver and negotiate so as to bind all parties except himself. Thus, a Minor can be a Drawrer, Payee, Endorser or Endorsee of a NI 2. The Instrument shall not become void by reason merely of the fact that a minor is one of the party to the instrument. 3. Since a Minor is Incompetent to contract, he cannot bind himself. Hence, whether he is the Drawer, Maker , Acceptor or Endorser, he is not Liable on the Instrument. Case Study :( Sulochana Vs Pandiyan Bank Limited.)

Thanks dear.................


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