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Negotiable instruments

Corporate & Other Laws

In video no 23 in the example the endorsement is forged rite. So doesn't that make the instrument to become a nullity. So making that endorsement invalid. Then how can Mr. Y become holder in due course? As the law states holder in due course receives no title when there is enitr absence of title as in case of forgery

Swathi Krishna

CA Final

★ 8K+

21-Aug-20 12:00

338

Answers (2)

If there is forgery in endorsement, that leads to only defect in title. Hence holder in due course will get Protection. Forgery in endorsement does not make the entire instrument void.