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The Negotiable Instruments Act, 1881

( ACT NO. XXVI OF 1881 )


Effect of indorsement
50.(1) Subject to the provisions of this Act relating to restrictive, conditional and qualified indorsement, the indorsement of a negotiable instrument followed by delivery transfers to the indorsee the property therein with the right of further negotiation.
(2) An indorsement is restrictive which either-
(a) restricts or excludes the right to further negotiate the instrument; or
(b) constitutes the indorsee an agent of the indorser to indorse the instrument or to receive its contents for the indorser or for some other specified person:
Provided that the mere absence of words implying right to negotiate does not make the indorsement restrictive.
B signs the following indorsements on different negotiable instruments payable to bearer:-
(a) "Pay the contents to C only."
(b) "Pay C for my use."
(c) “Pay C or order for the account of B.”
(d) “The within must be credited to C.”
These indorsements exclude the right of further negotiation by C.
(e) “Pay C.”
(f) “Pay C value in account with the Oriental Bank.”
(g) “Pay the contents to C, being part of the consideration in a certain deed of assignment executed by C to the indorser and others.”
These indorsements do not exclude the right of further negotiation by C.

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Ministry of Law, Justice and Parliamentary Affairs