Negotiable Instruments Act, 1881 · Chapter IV: Of Negotiation
Section 46: Delivery
In plain words
Making, accepting or indorsing a note, bill or cheque is completed by delivery, actual or constructive.
- Between parties in immediate relation, delivery must be by the party concerned or someone they authorise.
- Against anyone other than a holder in due course, it can be shown that delivery was conditional or for a special purpose only.
- A bearer instrument is negotiated by delivery. An order instrument is negotiated by indorsement and delivery.
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
The making, acceptance or indorsement of a promissory note, bill of exchange or cheque is completed by delivery, actual or constructive.
As between parties standing in immediate relation, delivery to be effectual must be made by the party making, accepting or indorsing the instrument, or by a person authorised by him in that behalf.
As between such parties and any holder of the instrument other than a holder in due course, it may be shown that the instrument was delivered conditionally or for a special purpose only, and not for the purpose of transferring absolutely the property therein.
A promissory note, bill of exchange or cheque payable to bearer is negotiable by the delivery thereof.
A promissory note, bill of exchange or cheque payable to order is negotiable by the holder by indorsement and delivery thereof.
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.
Supreme Court judgments citing the section 46
No Supreme Court judgment in our database cites this section yet.