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Chapter IV - Of Negotiation

Section 55

Section 55: Claim against a subsequent indorser in full

Section 55 limits who may claim against an indorser in full where the instrument was earlier indorsed in blank.

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Need advice on Section 55?

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.

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Statutory text

Bare law

If a negotiable instrument, after having been indorsed in blank, is indorsed in full, the amount of it cannot be claimed from the indorser in full, except by the person to whom it has been indorsed in full, or by one who derives title through such person.

Key rule and applicability

The claim against that indorser in full belongs to the named full indorsee or someone deriving title through that person. The earlier blank indorsement does not remove this specific claimant restriction.

Limits and related provisions

The provision concerns a claim against the indorser in full; it should not be restated as eliminating every claim against every other instrument party. Identify the defendant and the claimant’s title route.

Hypothetical business example

Hypothetical: after a blank indorsement, a bill is indorsed in full to a named financier. A later claimant seeking recovery from that full indorser must establish that it is the named indorsee or derives title through that financier.

Practical decision flow

Locate the earlier blank indorsement and subsequent full indorsement.

Identify the full indorser being charged and the named indorsee.

Prove the claimant’s title through that named person where required.

Practical checklist

Do

  • Locate the earlier blank indorsement and subsequent full indorsement.
  • Identify the full indorser being charged and the named indorsee.
  • Prove the claimant’s title through that named person where required.

Avoid

  • The provision concerns a claim against the indorser in full; it should not be restated as eliminating every claim against every other instrument party. Identify the defendant and the claimant’s title route.

Glossary

Indorser in full
The person making the specified full indorsement.
Named indorsee
The recipient named in that full indorsement.

Frequently asked questions

Can any bearer necessarily claim against the full indorser?

The section restricts that claim to the named indorsee or a person deriving title through them.

Does it require an earlier blank indorsement?

That is the factual sequence described by the provision.

Does it settle every other party’s liability?

No. Its stated restriction targets the claim against the indorser in full.

Need help applying this provision to your situation?

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Last updated 10 October 2026