Holder of Bearer instrument
Could a person who stolen a bearer instrument become holder of it? as he is not entitled to hold the instrument.
Yet he is a Holder ,. Am I right sir!
No. He is not. As per section 8 of the NI act, holder is defined as follows: "The â??holderâ?? of a promissory note, bill of exchange or cheque means any person entitled in his own name to the possession thereof and to receive or recover the amount due thereon from the parties thereto. Where the note, bill or cheque is lost or destroyed, its holder is the person so entitled at the time of such loss or destruction." Is the thief entitled legally entitled to hold the cheque in his own name? No - hence he is not a holder