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Report No. 11

27. Forged or unauthorised signature.-

Subject to the provisions of this Act, where a signature on an instrument is forged or placed thereon without the authority of the person whose signature it purports to be, it is wholly inoperative, and no right to retain the instrument or to give a discharge therefor or to enforce payment thereof against any party thereto can be acquired through or under such signature, unless the party against whom it is sought to retain or enforce payment of the instrument is precluded from setting up the forgery or want of authority:

Provided that nothing in this section shall affect the ratification of an unauthorised signature not amounting to a forgery.1

1. See section 24, BEA.

Negotiable Instruments Act, 1881 Back

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