When a negotiable instrument has been lost, or has been obtained from any maker, acceptor or holder thereof by means of an offence or fraud, or for an unlawful consideration, no possessor or indorsee who claims through the person who found or so obtained the instrument is entitled to receive the amount due thereon from such maker, acceptor or holder, or from any party prior to such holder, unless such possessor or indorsee is, or some person through whom he claims was, a holder thereof in due course.
CHAPTER IV OF NEGOTIATION
Section 58: Instrument obtained by unlawful means or for unlawful consideration
The Negotiable Instruments Act, 1881
Questions on this section
1 question in 5 of our papers cite Section 58. Try these from the free papers:
1. A promissory note payable to bearer three months after date is stolen from its holder P by T. Before maturity, T delivers it to U, who takes it for value, in good faith and without any cause to believe that T's title is defective. Under Section 58 of the Negotiable Instruments Act, 1881, can U recover the amount from the maker?