Negotiable Instruments Act, 1881 · Chapter III: P A R T I E S T O N O T E S, B I L L S A N D C H E Q U E S .
Section 36: Liability of prior parties to holder in due course
In plain words
Every earlier party to a negotiable instrument is liable to a holder in due course until the instrument is duly satisfied.
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
Every prior party to a negotiable instrument is liable thereon to a holder in due course until the instrument is duly satisfied.
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 36
No Supreme Court judgment in our database cites this section yet.