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Flashcards in Endorsement Deck (13):


It means anything written or printed upon the back of a deed or writing



Definition: Section 15 of the Negotiable Instruments Act. 1881, defines "Indorsement" as under:

When the maker or holder of a negotiable instru­ment signs the same, for the purpose of negotiation. on the back or face thereof or on a slip of paper annexed thereto, or so signs for the same purpose a stamped paper intended to be completed as negotiable instrument. he is said to indorse the same, and is called the 'indorser’


‘In blank' & `In full' Indorsement

Section 16 of the Negotiable Instruments Act, 1881. reads: "If the indorser signs his name only, the indorsement is said to be ‘in blank‘, and if he adds a direction to pay the amount mentioned in the instrument to, or to the order of, a specified person, the indorsement is said to be in full', and the person so specified is called the 'indorsee' of the instrument“


'General Indorsement'.

'General Indorsement'. It consists of the bare signature of the indorser, and the instrument so indorsed becomes payable to bearer.


‘Special Indorsement‘,

‘Special Indorsement‘, It specifies, in addition to the signature of the indorser, the person to whom or to whose order the instrument is payable.


Restrictive Indorsement

Under Section 50 of the Negotiable Instruments Act, this is an indorsement which prohibits further negotia­tion of the instrument. For instance, if a cheque is in­dorsed; "pay X only" or "pay X for the account of Y" etc. the indorsee has no power to transfer this rights to any one further.


Partial Indorsement

Under Section 56 of the Negotiable instruments Act, 1881. this is an indorsement which purports to transfer to the indorsee only a part of the amount payable on a bill of exchange or promissory note.


Conditional Indorsement

Under Section 52 of the Negotiable Instruments Act, it is an indorsement which makes the transfer of the in­strument from the indorser to the indorsee after the fulfillment of stated conditions. For instance. the holder of the bill indorses: "Pay accounts or order without recourse to me" or "Pay or order at his own risk".


`Sans Recourse' Indorsement

When an indorser wants to exclude his liability to the indorsee or subsequent holder he indicates it clearly on the instrument by writing the words. 'SANS RFCOURSE. or 'Without Recourse'.



1. The name of the indorser must appear exactly in the same spelling as written in the instrument as the payee or the indorsee.
2. Indorsement in pencil is legally valid but it should be discouraged: bankers must insist on indorsements in ink.
3. Indorsement made by an imprest stamp or in any other form of facsimile signature should not be accepted.



4. Indorsement made in typewriting or printed form is not treated as valid unless the payee gives a satisfactory evidence or confirmation about its genuineness.
5. An indorsement made in a language not spoken in the area and which the paying banker also does not understand. should not be accepted without a certified translation. However. in the presence of a collecting banker's confirmation. certified translation is not necessary.
6. It is not essential that indorsements, if more khan one, should appear in the same serial order in which they were made.


How many classes of indorsement?

There are five main classes of indorsement: :


Name classes of indorsement?

‘In blank' (General) & `In full' Indorsement (Special)
Restrictive Indorsement
Partial Indorsement
Conditional Indorsement
`Sans Recourse' Indorsement