Section 121 of The Negotiable Instruments Act, 1881

121. Estoppel against denying capacity of payee to indorse.— No maker of a promissory note and no acceptor of a bill of exchange 1[payable to order] shall, in a suit thereon by a holder in due course, be permitted to deny the payee’s capacity, at the rate of the note or bill, to indorse the same.

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