Chapter II - Of Notes, Bills and Cheques
Section 15
Section 15: indorsement
Section 15 defines indorsement by a maker or holder’s signature for negotiation, including a signature on an annexed slip.
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Need advice on Section 15?
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
When the maker or holder of a negotiable instrument signs the same, otherwise than as such maker, for the purpose of negotiation, on the back or face thereof or on a slip of paper annexed thereto, or so signs for the same purpose a stamped paper intended to be completed as a negotiable instrument, he is said to indorse the same, and is called the “indorser”.
Applicability and limits
An indorsement is a maker’s or holder’s signature on the instrument or attached slip, other than as maker, for the purpose of negotiation.
The signature’s purpose matters; a signature in another capacity is not automatically an indorsement.
Hypothetical example
Hypothetical: a payee signs the back of an order bill before delivering it to a supplier. The signature’s position and transfer purpose support the indorsement analysis.
Evidence and decision flow
Identify who signed and in what capacity.
Inspect the instrument or annexed slip.
Connect the signature to negotiation and preserve the transfer record.
Practical checklist
Do
- Inspect the signature and whether it was made to negotiate the instrument.
- Preserve any annexed slip with the instrument.
- Check whether the indorsement is blank, full or restrictive under the related provisions.
Avoid
- Do not rely on the label of an instrument alone; read its wording and the related Act provisions.
Glossary
- Indorsement
- Signature placed for negotiation in the manner described by Section 15.
- Annexed slip
- Paper attached to the instrument on which an indorsement may be written.
Frequently asked questions
Is the maker’s original signature an indorsement?
No. Section 15 excludes a signature by the maker merely in that capacity.
Can the signature be on attached paper?
Yes. Section 15 includes a slip annexed to the instrument.
Does every signature on the back qualify?
No. Its maker or holder and purpose of negotiation need to be established.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026