Negotiable Instruments Act, 1881 · Chapter IV: Of Negotiation
Section 56: Indorsement for part of sum due
In plain words
An indorsement that tries to transfer only part of the amount due is not valid for negotiation. But if the amount has been partly paid, that can be noted on the instrument and it can then be negotiated for the balance.
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 writing on a negotiable instrument is valid for the purpose of negotiation if such writing purports to transfer only a part of the amount appearing to be due on the instrument; but where such amount has been partly paid, a note to that effect may be indorsed on the instrument, which may then be negotiated for the balance.
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 56
No Supreme Court judgment in our database cites this section yet.