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Holder in due course- negotiable instruments act .

Can the maker/drawer of the bill of exchange be known as a holder in due course?


Mega Varthini

Mega Varthini

CA Inter

480

23-Jul-20 13:10

16

Answers (4)

Best Answer

For HDC 3 conditions has to be satisfied. It(ni) should be Received for a consideration, Received before the maturity date, Received in good faith. If that drawer satisfied this condition then he is a HDC. If drawee not pay him, he can sue the drawee.


AKHIL KOSHY

AKHIL KOSHY

CA Inter

6K+

24-Jul-20 23:43

A holder is a person who legally obtains the negotiable instrument, with his name entitled on it, to receive the payment from the parties liable. A holder in due course (HDC) is a person who acquires the negotiable instrument bonafide for some consideration, whose payment is still due. The drawer is the party that obliges the drawee to pay the payee. The drawer and the payee are the same entity unless the drawer transfers the bill of exchange to a third-party payee.


Lavanya Chitturi

Lavanya Chitturi

Moderator

24-Jul-20 13:25

Can you tell me yes or no for the above question

Yes or No is based on the condition he is satisfied as HDC or not


AKHIL KOSHY

AKHIL KOSHY

CA Inter

6K+

24-Jul-20 23:46