Wednesday, March 22, 2006
"Holder in due course" is a concept that varies a bit from legal system to legal system. In a new paper, Holder and Holder in Due Course -- A Comparative Analysis of the Bills of Exchange Act (U.K.) and the Negotiable Instruments Act (India), forthcoming in the Company Law Review, Bhupender Singh of the National Law University, Jodhpur, takes a comparative look at Indian and British rules, and suggests some changes to the former. Here's the abstract:
Present paper is based on the Comparative Analysis of the Bills of Exchange Act (U.K.) and the Negotiable Instruments Act (India). The author has tried to enumerate the various anomalies which the Negotiable Instruments Act contains and which should be removed as per the Bills of
Exchange Act. Even the Law Commission of India has said in its 11th Report that it would be better if India adopts the concept of Holder and Holder in Due Course as it exists in U.K. since any divergence from the Bills of Exchange Act would lead to various legal hazards. At the same time this paper talks about the rights and privileges of the Holder in Due Course as in the Negotiable Instruments Act and the Bills of Exchange Act.