Negotiable Instruments Act • Official Statutory Text & Practice Guide
Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1881
Section 15 of Negotiable Instruments Act: Endorsement
Official Bare Act Text
Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary
When the maker or holder of a negotiable instrument signs the same, otherwise than as such maker, for the purpose of negotiation, on the back or face thereof or on a slip of paper annexed thereto, or so signs for the same purpose a stamped paper intended to be completed as a negotiable instrument, he is said to indorse the same, and is called the “indorser”.
Statutory Defined Terms in this Section:(Click any term for official legal definition)
Section 15 defines 'indorsement' as the act of the maker or holder of a negotiable instrument signing the same, otherwise than as maker, upon the face or back thereof or on a slip of paper annexed thereto (allonge), for the purpose of negotiation.
Signature by Maker or Holder: Must be signed by the person legally entitled as maker or holder; unauthorized third-party signatures are void.
Physical Attachment (Allonge): If the reverse of the instrument is filled with endorsements, signatures may be executed upon an attached paper called an 'allonge'.
Purpose of Negotiation: The signature must be affixed with the deliberate commercial intention of transferring title to the instrument.
Key Landmark Precedents:
Gour Chandra v. Pradyumna Kumar (AIR 1945 Cal 202): Examined the legal validity of an indorsement on an allonge, holding that physical annexation to the principal instrument is essential for commercial validity.
Jayantilal Goel v. Zubeda Khanum (AIR 1986 AP 120): Affirmed that signature without delivery or without intention to negotiate does not constitute an enforceable indorsement under Section 15.
Courtroom Practice & Strategic Litigation Guidance:
Always examine the continuity of indorsements when representing a holder in due course. An unbroken chain of regular indorsements on the back of a bill creates a strong statutory presumption of ownership and legitimate title.
Legal Commentary & Landmark Judgments: Section 15
Section 15 defines 'indorsement' as the act of the maker or holder of a negotiable instrument signing the same, otherwise than as maker, upon the face or back thereof or on a slip of paper annexed thereto (allonge), for the purpose of negotiation.
Always examine the continuity of indorsements when representing a holder in due course. An unbroken chain of regular indorsements on the back of a bill creates a strong statutory presumption of ownership and legitimate title.