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Report No. 11

108. Section 58.-

There is no definition of "defective title" though the expression is used in the definition of "holder in due course". We have already provided1 that a forged instrument conveys no title. If the title is acquired by means of an offence or fraud or for an unlawful consideration the title is only defective and the person holding such title may convey a better title to a holder in due course. This is provided in section 58. We have retained that section, subject to verbal changes.2

1. Para. 61, ante.

2. Section 28, App I.

Negotiable Instruments Act, 1881 Back

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