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Section 57: Legal representative cannot by delivery only negotiate instrument endorsed by deceased

Negotiable Instruments Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1881
Section 56 All 148 Sections of Negotiable Instruments Act Section 58

Legal Commentary & Landmark Judgments: Section 57

Section 57 enacts that the legal representative of a deceased person cannot negotiate by delivery only a promissory note, bill of exchange, or cheque payable to order and indorsed by the deceased but not delivered.

  • Incomplete Negotiation at Death: If the deceased indorsed an order instrument but died before physical delivery, the indorsement is legally dead.
  • No Negotiation by Mere Delivery: The executor or administrator cannot complete the deceased's indorsement by handing over the paper; they must execute a fresh indorsement in their own name.
  • Estate Protection: Prevents unauthorized distribution of estate assets without formal probate, administration, or succession certificate authority.
Key Landmark Precedents:
  • Lachhmi Narain v. Mst. Nand Kuer: Held that an indorsement without delivery by the deceased is inchoate and confers no title; an heir delivering such paper transfers no rights under Section 57.
  • Subramanian v. Kuttalam Pillai: Affirmed that the legal representative must indorse the instrument afresh in their representative capacity to effectuate a valid negotiation.
Courtroom Practice & Strategic Litigation Guidance:

In inheritance and succession disputes involving negotiable instruments, inspect the deceased's endorsements. If an instrument was found in the deceased's locker signed by them, an heir cannot simply hand it over to a creditor; a new indorsement under succession authority is mandatory.

Section 56 All 148 Sections of Negotiable Instruments Act Section 58