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What does section 8 call a person entitled in their own name to possess a negotiable instrument and recover the amount due?

Question and options

What does section 8 call a person entitled in their own name to possess a negotiable instrument and recover the amount due?

  1. Owner

  2. Receiver

  3. Holder

  4. Maker

Answer and explanation

Correct answer: C - Holder

Section 8 of the Negotiable Instruments Act, 1881 defines the holder as the person entitled in his own name to the possession of the instrument and to receive or recover the amount due on it from the parties. The Act does not use 'owner' for this; a person may be in possession, or even the true owner, without being a holder entitled in his own name, as with a finder or an agent.

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