An instrument was lost or obtained through an offence, fraud or unlawful consideration, and neither the…
Section 58 of the Negotiable Instruments Act bars a person claiming through a finder or wrongdoer from recovering against the maker, acceptor, affected holder or parties…
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An instrument was lost or obtained through an offence, fraud or unlawful consideration, and neither the claimant nor anyone through whom the claimant derives title was a holder in due course. What follows under section 58 of the Negotiable Instruments Act, 1881?
Answer and explanation
Correct answer A
Section 58 of the Negotiable Instruments Act bars a person claiming through a finder or wrongdoer from recovering against the maker, acceptor, affected holder or parties prior to that holder, unless a holder in due course appears in the chain. Its phrase "any party prior to such holder" does not bar every possible claim against a later transferor, and mere notice does not cure defective title.
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