Section 42 of NIA : Section 42: Acceptance Of Bill Drawn In Fictitious Name

Explanation using Example

Imagine John Doe issues a bill of exchange to himself in the fictitious name "Richard Roe" and then endorses it over to Jane Smith, who is a holder in due course (meaning she has taken the bill for value, in good faith, and without notice of any defects). When Jane presents the bill for payment, the acceptor (the person who has agreed to pay the bill) cannot refuse to pay on the grounds that "Richard Roe" never really existed. The acceptor's liability to Jane remains intact because she is a legitimate holder of the bill despite the fictitious nature of the drawer's name.