Negotiable Instruments Act, 1881 · Chapter XIII: S P E C I A L R U L E S O F E V I D E N C E
Section 121: Estoppel against denying capacity of payee to indorse
In plain words
In a suit by a holder in due course, the maker of a note or acceptor of an order bill cannot deny the payee's capacity to indorse it at its date.
A simplified explanation, prepared with AI assistance from the official text below and checked automatically against it for numbers and cross-references. The official text is the law and prevails over this summary. Not legal advice.
Official text
No maker of a promissory note and no acceptor of a bill of exchange [payable to order] shall, in a suit thereon by a holder in due course, be permitted to deny the payee's capacity, at the date of the note or bill, to indorse the same.
Source: India Code (indiacode.gov.in), the consolidated text published by the Legislative Department, Government of India. Text as updated on India Code on 15 October 2026. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.