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        Indian Laws

        Section 85 - Cheque payable to order

        Negotiable Instruments Act, 1881
        Chapter VII
        Of Discharge from Liability on notes, Bills and Cheques

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        Discharge of drawee: payment in due course to indorsee or bearer absolves drawee despite endorsements or restrictions. A drawee is discharged by payment in due course when a cheque payable to order bears an endorsement by or on behalf of the payee. If a cheque is originally payable to bearer, the drawee is discharged by payment in due course to the bearer despite any endorsements, whether full or blank, and despite endorsements purporting to restrict or exclude further negotiation.
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                          Provisions expressly mentioned in the judgment/order text.

                              Discharge of drawee: payment in due course to indorsee or bearer absolves drawee despite endorsements or restrictions.

                              A drawee is discharged by payment in due course when a cheque payable to order bears an endorsement by or on behalf of the payee. If a cheque is originally payable to bearer, the drawee is discharged by payment in due course to the bearer despite any endorsements, whether full or blank, and despite endorsements purporting to restrict or exclude further negotiation.


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