Section 14 of NIA : Section 14: Negotiation

Explanation using Example

Imagine that Rita has a promissory note where she is due to receive $1,000 from John on a specific date. Rita needs cash immediately, so she transfers this promissory note to her friend Alex by endorsing it on the back and delivering it to him. Now, Alex becomes the holder of the note and has the right to receive the $1,000 from John on the due date. This transfer of the promissory note from Rita to Alex is an example of negotiation of the instrument under Section 14 of The Negotiable Instruments Act, 1881.