Indorsement for part of sum due
Section 56 of the Negotiable Instruments Act, 1881 deals with indorsement for part of sum due. 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; The Act came into force on 01 Mar 1882.
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.
Section 56, The Negotiable Instruments Act, 1881 (Act 26 of 1881).
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Dharam Nath vs Krishan Kumar
Court's Decision & Legal Precedent
When a cheque has been duly signed and issued by the accused, and the holder of the cheque has established the existence of a legally enforceable debt through credible evidence (including testimony regarding possession of pronote and receipt), the accused cannot escape liability by simple denial. The presumption under Section 139 of the Negotiable Instruments Act favors the holder of the cheque, and to rebut this presumption, the accused must present cogent facts and circumstances making it plausible that no debt existed. Technical objections regarding non-production of original documents are not sustainable when the accused had opportunity to demand their production during cross-examination but failed to do so. The burden shifts to the accused to prove absence of debt, not merely to deny it.
On this section: Cited in context of endorsement requirements; establishes that part-payment of debt must be endorsed on cheque or in note appended to cheque
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Sri Chepuru Chiranjeevulu vs Sri Pentapati Satyanarayana Murthy
Court's Decision & Legal Precedent
The burden of proving complete discharge of a debt lies on the debtor, who must show active diligence in obtaining endorsements or receipts for payments made. However, where a creditor admits partial unrecorded payments and the evidence of total repayment remains highly vague, the court may partially decree the suit based on equity.
On this section: Referenced implicitly regarding endorsement of partial payments on a promissory note.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Questions about Section 56
What have the courts held on Section 56 of the Negotiable Instruments Act?
Dharam Nath vs Krishan Kumar (13 Jan 2025) is the leading judgment on this section among those set out below: Cited in context of endorsement requirements; establishes that part-payment of debt must be endorsed on cheque or in note appended to cheque. Another 1 judgment on this section is set out below. They run from 2012 to 2025.
How do I find court cases under Section 56 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 56, section 56 NI Act, section 56 of the Negotiable Instruments Act. People searching for it also type negotiable instrument act section 56. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 2 reported judgments on this section are set out on this page, beginning with Dharam Nath vs Krishan Kumar (13 Jan 2025).
When did Section 56 of the Negotiable Instruments Act come into force?
Section 56 of the Negotiable Instruments Act, cited as NI Act 56, 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 14 Oct 2026. This page is not a substitute for legal advice.