When a negotiable instrument is transferred to many persons with a view to constituting that person the holder thereof, the instrument is deemed to have been negotiated (Section 14). A negotiable instrument may be transferred in either of the two ways viz.,
(1) by negotiation under the Negotiable Instruments Act (Section 14, 48, 47, 46); and
(ii) by assignment of the instrument as an ordinary chosen in action under the Transfer of Property Act (Chapter VII, Section 130). Transfer by negotiation, however, is the only mode of transfer recognized by the Act.
Duration of negotiation (Section 60): An instrument may be negotiated until payment thereof by the maker, drawee or acceptor at or after maturity, but not after such payment. But the maker, drawee or acceptor cannot negotiate the instrument after maturity, even if it remains unpaid. An instrument may be satisfied even without payment, and such satisfaction is equivalent to payment.
Under the Act, negotiable instruments may be negotiated either by delivery when these are payable to bearer or by endorsement and delivery when these are payable to order.
Duration of negotiation (Section 60): An instrument may be negotiated until payment thereof by the maker, drawee or acceptor at or after maturity, but not after such payment. But the maker, drawee or acceptor cannot negotiate the instrument after maturity, even if it remains unpaid. An instrument may be satisfied even without payment, and such satisfaction is equivalent to payment.
Under the Act, negotiable instruments may be negotiated either by delivery when these are payable to bearer or by endorsement and delivery when these are payable to order.
How negotiation is done as per Negotiable Instrument Act?
![How negotiation is done as per Negotiable Instrument Act?]()
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