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Bills of Exchange Act, 1964 (Act No. 34 of 1964)

Chapter I

Negotiation of bills

36. Rights and powers of the holder


The rights and powers of the holder of a bill are as follows, namely—

(a) he may sue on the bill in his own name;
(b) if he is a holder in due course, he holds the bill free from any defect in the title of prior parties, as well as from mere personal defences available to prior parties among themselves, and may enforce payment against all parties liable on the bill;
(c) if the title is defective and—
(i) he negotiates the bill to a holder in due course, that holder obtains a good and complete title to the bill; or
(ii) he obtains payment of the bill in due course the person who made such payment gets a valid discharge of the bill.