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Section51
The Negotiable Instruments Act, 1881

Who may negotiate

In force From 01 Mar 1882 Act 26 of 1881 As on 15 Oct 2026

Act 26 of 1881 Ministry Finance Enacted 09 Dec 1881 In force 01 Mar 1882

Section 51 of the Negotiable Instruments Act, 1881 deals with who may negotiate. Every sole maker, drawer, payee or indorsee, or all of several joint makers, drawers, payees or indorsees, of a negotiable instrument may, if the negotiability of such instrument has not been restricted or excluded as mentioned in section 50, indorse and negotiate the same. The Act came into force on 01 Mar 1882.

Every sole maker, drawer, payee or indorsee, or all of several joint makers, drawers, payees or indorsees, of a negotiable instrument may, if the negotiability of such instrument has not been restricted or excluded as mentioned in section 50, indorse and negotiate the same.

Explanation.-- Nothing in this section enables a maker or drawer to indorse or negotiate an instrument, unless he is in lawful possession or is holder thereof; or enables a payee or indorsee to indorse or negotiate an instrument, unless he is holder thereof.

Illustration

A bill is drawn payable to A or order. A indorses it to B, the indorsement not containing the words "or order" or any equivalent words. B may negotiate the instrument.

Section 51, 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

  1. s. 50 Effect of indorsement

Questions about Section 51

What does Section 51 of the Negotiable Instruments Act deal with?

Section 51 of the Negotiable Instruments Act is headed "Who may negotiate". Every sole maker, drawer, payee or indorsee, or all of several joint makers, drawers, payees or indorsees, of a negotiable instrument may, if the negotiability of such instrument has not been restricted or excluded as mentioned in section 50, indorse and negotiate the same.

How do I find court cases under Section 51 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 51, section 51 NI Act, section 51 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 51 of the Negotiable Instruments Act, and has it changed?

Its own text turns on section 50 (Effect of indorsement), so none of them can safely be read on its own.

When did Section 51 of the Negotiable Instruments Act come into force?

Section 51 of the Negotiable Instruments Act, cited as NI Act 51, 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

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.