Section 121
Estoppel against denying capacity of payee to indorse.
The Negotiable Instruments Act, 1881
About this Act
An Act to define and amend the law relating to Promissory Notes, Bills of Exchange and Cheques.
No maker of a promissory note and
no acceptor of a bill of exchange 1[payable to order] shall, in a suit thereon by a holder in due course, be
permitted to deny the payee's capacity, at the date of the note or bill, to indorse the same.
Notes
1. Subs. by Act 8 of 1919, s. 5, for payable to, or to the orderof, a specified person.