NI Act 51Chapter IV · Of Negotiation
Section 51 · Who may negotiate
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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.
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.
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