priyanka narale (PCC student) (407 Points)
20 January 2009Can anybody explain me the meaning
The holder in due course can sue upon a negotiable instrument in his own name for the recovery of the amount. further no need to give notice to the party liable on the instrument to pay.
M totally confused about the party to be sued.
Ashish M
(Chartered Accountant)
(2731 Points)
Replied 21 January 2009
Pls read every word written below vry carefully........i hope u will got ur answer.......
""a holder in due course is a person who, through a valid consideration, become the holder of instrument.....
e.g. 'A' signed an instrument to pay a certain sum of money to somebody.
Now 'B', by theft, got the negotiable instrument.............................. After that, he purchases something from a seller 'C' and in consideration gives him the instrument.
Now in this case, the seller 'C' has become holder in due course bcoz he got the instrument in good faith and through bonafide consideration (i.e. by selling something to 'B' in return of instruement, whereas B was not Holder in due course coz he got the instrument by theft).
Now here as per your query, the party referred to is the party who is liable to pay the money under the obligation of the instrument. i.e. in my example...'A' is the party in your query........
Now as per definition, the seller C not required to give notice to A (the party) and he can sue upon A if he doesn't pay to C the amt. he undertook by signing the instrument........""
hope i m able to wisp smoke from the issue.............
Prakash Popat
(3134 Points)
Replied 21 January 2009
But A got right of recovery from B who was not holder in due course,Nice Reply Ashish.
Ashish M
(Chartered Accountant)
(2731 Points)
Replied 21 January 2009
ya.....ya........A got that right of recovery...........dats right...!
priyanka narale
(PCC student)
(407 Points)
Replied 21 January 2009
Thanks I got it. I was affraid that will anyone answer, but thanks to you Ashish
Prakash Popat
(3134 Points)
Replied 23 January 2009
Priyanka Your Query as Yet not resolved,Y?think and move ahead very nice point U have raised to make it nicer.
Prakash Popat
(3134 Points)
Replied 23 January 2009
Priyanka You query as Yet not Resolved fully,Y?Think and Move ahead You have raised nice point,Let's make it nicer.
Prakash Popat
(3134 Points)
Replied 23 January 2009
Priyanka You query as Yet not Resolved fully,Y?Think and Move ahead You have raised nice point,Let's make it nicer.
Prakash Popat
(3134 Points)
Replied 23 January 2009
Priyanka You query as Yet not Resolved fully,Y?Think and Move ahead You have raised nice point,Let's make it nicer.
Prakash Popat
(3134 Points)
Replied 23 January 2009
Priyanka You query as Yet not Resolved fully,Y?Think and Move ahead You have raised nice point,Let's make it nicer.
Prakash Popat
(3134 Points)
Replied 23 January 2009
Priyanka You query as Yet not Resolved fully,Y?Think and Move ahead You have raised nice point,Let's make it nicer.
Prakash Popat
(3134 Points)
Replied 23 January 2009
Repeatedly posting on accounts of system malfuctioning as in the case of SATYAM Short Selling.
Prakash Popat
(3134 Points)
Replied 23 January 2009
Repeteadly posting is on account of system malfunctioningas in the case of SATYAM.
Prakash Popat
(3134 Points)
Replied 23 January 2009
Malfunctioning of systems posted so many times same matters,Like SATYAM.
Prakash Popat
(3134 Points)
Replied 23 January 2009
Malfunctioning of System posted repetedly same point,May be like short selling in SATYAM.
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