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Section 29: Liability of legal representative signing

Negotiable Instruments Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1881
Section 28 All 148 Sections of Negotiable Instruments Act Section 30

Legal Commentary & Landmark Judgments: Section 29

Section 29 governs the liability of a legal representative signing a promissory note, bill, or cheque, enacting that they are personally liable thereon unless they expressly limit their liability to the extent of the assets received.

  • Personal Liability Default: A legal representative who signs commercial paper becomes personally liable for the full amount like any ordinary maker.
  • Limitation to Estate Assets: To avoid personal ruin, the representative must explicitly insert words limiting liability: 'payable only out of the estate of deceased [Name] in my hands'.
  • Distinction from Civil Inheritance: Under general civil law, an heir is liable only to the extent of inherited estate; under Section 29, signing a note displaces this protection unless expressly stated.
Key Landmark Precedents:
  • Lachhmi Narain v. Mst. Nand Kuer: Held that an executor or administrator signing a promissory note without words of limitation is personally bound to the holder, regardless of the solvency of the estate.
  • K.S. Subbarayudu v. State of A.P.: Reaffirmed the strict commercial necessity of Section 29 in preventing negotiable instruments from becoming entangled in probate and administration disputes.
Courtroom Practice & Strategic Litigation Guidance:

When administering an estate or settling a deceased debtor's affairs, never sign a fresh promissory note in favor of creditors without explicit words of limitation. Otherwise, the representative becomes personally liable from their own personal wealth.

Section 28 All 148 Sections of Negotiable Instruments Act Section 30