Section 8 of NIA : Section 8: ''Holder''

Explanation using Example

Imagine Sarah has a cheque that she received from John as payment for her consultancy services. Sarah is the "holder" of the cheque according to the Negotiable Instruments Act, 1881, because she is entitled to possess the cheque in her own name and has the right to collect the amount from John. If Sarah accidentally loses the cheque or it gets destroyed, she still remains the holder and has the right to seek the payment that was due on the cheque from John at the time it was lost or destroyed.