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Negotiable Instruments Act, 1881 · Chapter XIII: S P E C I A L R U L E S O F E V I D E N C E

Section 122: Estoppel against denying signature or capacity of prior party

In plain words

In a suit by a later holder, an indorser cannot deny the signature or contractual capacity of any earlier party.

A simplified explanation, prepared with AI assistance from the official text below and checked automatically against it for numbers and cross-references. The official text is the law and prevails over this summary. Not legal advice.

Official text

No indorser of a negotiable instrument shall, in a suit thereon by a subsequent holder, be permitted to deny the signature or capacity to contract of any prior party to the instrument.

Source: India Code (indiacode.gov.in), the consolidated text published by the Legislative Department, Government of India. Text as updated on India Code on 15 October 2026. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.

Supreme Court judgments citing the section 122