Bills of Exchange Act 1949 · 2020 Revised Edition · Part 2 · Bills of Exchange
38. Rights of holder
Feedback & supportThe rights and powers of the holder of a bill are as follows:
holder
“holder” means the payee or indorsee of a bill or note who is in possession of it, or the bearer thereof;
he may sue on the bill in his own name;
where he is a holder in due course, he holds the bill free from any defect of title of prior parties, as well as from mere personal defences available to prior parties among themselves, and may enforce payment against all parties liable on the bill.
Where a holder’s title is defective —
if he negotiates the bill to a holder in due course, that holder obtains a good and complete title to the bill; and
if he obtains payment of the bill, the person who pays him in due course gets a valid discharge for the bill.