Section 53: Holder deriving title from holder in due course

In plain words

A holder who gets title from a holder in due course has the same rights as that holder in due course.

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

A holder of a negotiable instrument who derives title from a holder in due course has the rights thereon of that holder in due course.

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 53

No Supreme Court judgment in our database cites this section yet.