Chapter XV - Of Bills in Sets
Section 133
Section 133: Priority between holders of parts of one set
Section 133 determines priority between holders in due course who hold different parts of the same bill set.
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Need advice on Section 133?
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
As between holders in due course of different parts of the same set, he who first acquired title to his part is entitled to the other parts and the money represented by the bill.
Key rule and applicability
Between those qualifying holders, the person who first acquired title to their part is entitled to the other parts and the money represented by the bill. The relevant chronology is acquisition of title.
Limits and related provisions
Do not substitute the part number, first demand or first court filing for the statutory title-acquisition test. Both the same-set relationship and the holders’ holder-in-due-course status are part of the stated setting.
Hypothetical business example
Hypothetical: two financiers each hold a different part of the same set and claim holder-in-due-course status. They preserve the documents showing when each acquired title, because section 133 gives priority by that chronology.
Practical decision flow
Verify that the competing parts belong to the same set.
Assess each claimant’s holder-in-due-course status.
Compare reliable title-acquisition dates and identify the first qualifying acquisition.
Practical checklist
Do
- Verify that the competing parts belong to the same set.
- Assess each claimant’s holder-in-due-course status.
- Compare reliable title-acquisition dates and identify the first qualifying acquisition.
Avoid
- Do not substitute the part number, first demand or first court filing for the statutory title-acquisition test. Both the same-set relationship and the holders’ holder-in-due-course status are part of the stated setting.
Glossary
- Title acquisition
- The obtaining of legal entitlement to the relevant part.
- Priority
- The superior entitlement between the specified competing holders.
Frequently asked questions
Does the lowest numbered part automatically win?
No. The test is who first acquired title to their part.
Does this rule concern any two possessors?
The section specifies holders in due course of different parts of the same set.
What is the first qualifying holder entitled to?
The other parts and the money represented by the bill.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026