Section 51 - Who may negotiate - Negotiable Instruments Act, 1881

Who may negotiate. 51. Every sole maker, drawer, payee or indorsee, or all of sever al joint makers, drawers, payees or indorsees, of a negotiable instrument may, if the negotiability of such instrument has not been restricted or excluded as mentioned in section 50, indorse and negotiate the same. Explanation : Nothing in this section enables a maker or drawer to indorse or negotiate an instrument, unless he is in lawful possession or is holder thereof; or enables a payee or indorsee to indorse or negotiate an instrument, unless he is holder there of. Illustration A bill is drawn payable to A or order. A indorses it to B, the indorsement not containing the words "or order" or any equivalent words, B may negotiate the instrument.