The Negotiable Instruments Act, 1881
Every person capable of binding himself or of being bound, as mentioned in section 26, may so bind himself or be bound by a duly authorized agent acting in his name. A general authority to transact business and to receive and discharge debts does not confer upon an agent the power of accepting or indorsing bills of exchange so as to bind his principal. An authority to draw bills of exchange does not of itself import an authority to indorse.
Source & version
Official text: India Code (official) ↗
Official India Code text: The Negotiable Instruments Act, 1881 (26 of 1881), English PDF (bitstream 123456789/15327/1/negotiable_instruments_act,_1881.pdf, 681,124 bytes, sha256 50fe22a1…) fetched directly from indiacode.nic.in (Akamai edge, DNS via dns.google) on 2026-07-29. Extracted via pdftotext 26.07 -bbox and @nexlex/ingest gazette parser. Automated parse; footnotes/amendment history excluded; spot-verified (s. 138 cheque dishonour); full clause-level proofread pending.
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