Negotiation by delivery
Section 47 of the Negotiable Instruments Act, 1881 deals with negotiation by delivery. Subject to the provisions of section 58, a promissory note, bill of exchange or cheque payable to bearer is negotiable by delivery thereof. The Act came into force on 01 Mar 1882.
Subject to the provisions of section 58, a promissory note, bill of exchange or cheque payable to bearer is negotiable by delivery thereof.
Exception.-- A promissory note, bill of exchange or cheque delivered on condition that it is not to take effect except in a certain event is not negotiable (except in the hands of a holder for value without notice of the condition) unless such event happens.
Illustrations
(a) A, the holder of a negotiable instrument payable to bearer, delivers it to B's agent to keep for B. The instrument has been negotiated.
(b) A, the holder of a negotiable instrument payable to bearer, which is in the hands of A's banker, who is at the time the banker of B, directs the banker to transfer the instrument to B's credit in the banker's account with B. The banker does so, and accordingly now possesses the instrument as B's agent. The instrument has been negotiated, and B has become the holder of it.
Section 47, The Negotiable Instruments Act, 1881 (Act 26 of 1881).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… No doubt, learned counsel for the appellantplaintiff has placed reliance on the Division Bench decision of this Court as stated supra, wherein it has been held as under: "CIVIL PROCEDURE CODE, 1908, Order 26, Rule 10(2) – Indian Evidence Act, 1872, Sections 45, 47 and 73 – Negotiable Instruments Act, 1881, Section 4 – Promissory note – Dispute regarding execution of – Court appointing Commissioner who is handwriting expert and recording his report that signature of execution of promissory note is genuine – Omission to examine handwriting expert in spite of party's objection …
Questions about Section 47
What does Section 47 of the Negotiable Instruments Act deal with?
Section 47 of the Negotiable Instruments Act is headed "Negotiation by delivery". Subject to the provisions of section 58, a promissory note, bill of exchange or cheque payable to bearer is negotiable by delivery thereof.
How do I find court cases under Section 47 of the Negotiable Instruments Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: NI Act 47, section 47 NI Act, section 47 of the Negotiable Instruments Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Section 47 of the Negotiable Instruments Act, and has it changed?
Its own text turns on section 58 (Instrument obtained by unlawful means or for unlawful consideration), so none of them can safely be read on its own.
When did Section 47 of the Negotiable Instruments Act come into force?
Section 47 of the Negotiable Instruments Act, cited as NI Act 47, came into force on 01 Mar 1882, having been enacted on 09 Dec 1881. It is in force as at the date shown on this page.
Other sections of this Act
- 138. Dishonour of cheque for insufficiency, etc., of funds in the account312 words
- 142A. Validation for transfer of pending cases299 words
- 143. Power of Court to try cases summarily297 words
- 143A. Power to direct interim compensation291 words
- 142. Cognizance of offences290 words
- 141. Offences by companies287 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.