# The Negotiable Instruments Act, 1881, Section 40: Discharge of indorser's liability

- Act: The Negotiable Instruments Act, 1881 (Act 26 of 1881)
- In force from: 1882-03-01
- Ministry: Ministry of Finance
- Source URL: https://indiacode.ecourtsindia.com/ni-act/section/40/

## Text

Where the holder of a negotiable instrument, without the consent of the indorser, destroys or impairs the indorser's remedy against a prior party, the indorser is discharged from liability to the holder to the same extent as if the instrument had been paid at maturity. Illustration A is the holder of a bill of exchange made payable to the order of B, which contains the following indorsements in blank:-- First indorsement, "B". Second indorsement, "Peter Williams". Third indorsement, "Wright & Co". Fourth indorsement. "John Rozario". This bill A puts in suit against John Rozario and strikes out, without John Rozario's consent, the indorsements by Peter Williams and Wright & Co. A is not entitled to recover anything from John Rozario.

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