Chapter XIII - Special Rules of Evidence
Section 120
Section 120: Estoppel against denying original validity of instrument
Section 120 limits an original-validity defence by specified instrument parties in a suit brought by a holder in due course.
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Need advice on Section 120?
This article is for general information. Refer to the Negotiable Instruments Act, 1881 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
No maker of a promissory note, and no drawer of a bill of exchange or cheque, and no acceptor of a bill of exchange for the honour of the drawer shall, in a suit thereon by a holder in due course, be permitted to deny the validity of the instrument as originally made or drawn.
Applicability and limits
Identify both sides carefully: the protected claimant is a holder in due course, while the restricted defendants are the note maker, bill or cheque drawer, and an acceptor for the drawer’s honour.
The bar concerns validity as originally made or drawn. It does not say that every holder, every defendant or every later alteration is covered.
Hypothetical example
Hypothetical: a holder in due course sues the drawer of a cheque. The drawer cannot deny its validity as originally drawn merely to defeat that suit; any different defence needs separate assessment.
Evidence and decision flow
Check the claimant’s holder-in-due-course status under section 9.
Identify the defendant’s precise role on the instrument.
Distinguish an original-validity denial from a dispute about later events.
Practical checklist
Do
- Check the claimant’s holder-in-due-course status under section 9.
- Identify the defendant’s precise role on the instrument.
- Distinguish an original-validity denial from a dispute about later events.
Avoid
- The bar concerns validity as originally made or drawn. It does not say that every holder, every defendant or every later alteration is covered.
Glossary
- Estoppel
- A legal restriction on denying the specified fact or position.
- Original validity
- Validity of the instrument when originally made or drawn.
Frequently asked questions
Does every holder receive this protection?
The text specifies a suit by a holder in due course.
Does the section name an ordinary bill acceptor?
It names an acceptor for the honour of the drawer, alongside the maker and drawer categories.
Does it resolve later alterations?
Its wording addresses original validity; assess alteration questions under their applicable provisions.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026