Can minor be a party to Negotiable instrument Act under 138?
vijay majithia (branch manager) 09 January 2011
minor can be a party to the negotiable instrument , however he can become beneficiary of ni
y haraharanathbabu (practing law) 09 January 2011
A contrct with minor is void, but if there is any beneficiary to the minor court will only beneficiary matter
sanket (Advocate) 09 January 2011
Minor can be only benificiary of negotiable Instruments but minor cannot be held liable on such Instruments
SACHIN AGARWAL (ADVOCATE) 09 January 2011
Minor can only be the benificiary of any Negotiable Instrument but the minor can never be held liable for any such Instrument.
malipeddi jaggarao (retired banker) 10 January 2011
Section 26 of NI Act defines the capacity of the minor. A minor can draw, endorse, deliver and negotiate the NI, so as to bind all parties except himself. Hence no action can be taken against the minor under the proivisons of Section 138 of NI Act.