Chapter IV - Of Negotiation
Section 57
Section 57: Undelivered indorsement by a deceased person
Section 57 prevents a legal representative from completing negotiation merely by delivering an order instrument that the deceased indorsed but did not deliver.
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Need advice on Section 57?
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
The legal representative of a deceased person cannot negotiate by delivery only a promissory note, bill of exchange or cheque payable to order and indorsed by the deceased but not delivered.
Key rule and applicability
The instrument is payable to order, indorsed by the deceased and undelivered. In that setting, the legal representative cannot negotiate it by delivery only.
Limits and related provisions
Do not treat the deceased’s signature as proof that negotiation was already complete, or the representative’s possession as authority to bypass the delivery rule. The estate’s wider rights and any other lawful route need separate analysis.
Hypothetical business example
Hypothetical: an executor finds an order bill bearing the deceased’s indorsement but evidence shows it was never delivered. The executor checks section 57 rather than assuming that handing it over alone completes the intended negotiation.
Practical decision flow
Confirm the order-payment form and the deceased’s indorsement.
Establish whether delivery occurred before death.
Assess the representative’s proposed act without treating delivery alone as sufficient in this setting.
Practical checklist
Do
- Confirm the order-payment form and the deceased’s indorsement.
- Establish whether delivery occurred before death.
- Assess the representative’s proposed act without treating delivery alone as sufficient in this setting.
Avoid
- Do not treat the deceased’s signature as proof that negotiation was already complete, or the representative’s possession as authority to bypass the delivery rule. The estate’s wider rights and any other lawful route need separate analysis.
Glossary
- Undelivered indorsement
- The signed indorsement that was not followed by delivery in the described facts.
- Legal representative
- The deceased person’s representative addressed by this restriction.
Frequently asked questions
Does the provision concern an order instrument?
Yes. It expressly states payable to order.
Can the representative negotiate it by delivery only?
Not in the stated indorsed-but-undelivered setting.
Does it declare all estate rights extinguished?
No. It imposes the specific restriction described in the provision.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026