Negotiable Instruments Act, 1881 · Chapter IV: Of Negotiation
Section 52: Indorser who excludes his own liability or makes it conditional
In plain words
An indorser can, by express words, exclude their own liability or make it, or the indorsee's right to payment, depend on a specified event, even one that may never happen.
- If such an indorser later becomes holder again, all the intermediate indorsers are liable to them.
Example: An indorser who signs "Without recourse" takes on no liability.
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 indorser of a negotiable instrument may, by express words in the indorsement, exclude his own liability thereon, or make such liability or the right of the indorsee to receive the amount due thereon depend upon the happening of a specified event, although such event may never happen.
Where an indorser so excludes his liability and afterwards becomes the holder of the instrument, all intermediate indorsers are liable to him.
Illustrations
(a) The indorser of a negotiable instrument sign; his name adding the words— "Without recourse".
Upon this indorsement he incurs no liability.
(b) A is the payee and holder of a negotiable instrument. Excluding personal liability by an indorsement "without recourse" he transfers the instrument to B, and B indorses it to C, who indorses it to A. A is not only reinstated in his former rights, but has the rights of an indorsee against B and C.
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 52
No Supreme Court judgment in our database cites this section yet.