The Negotiable Instruments Act, 1881
121. Estoppel against denying capacity of payee to endorse
No maker of a promissory note and no acceptor of a bill of exchange or cheque, and no acceptor of a bill of exchange 1[payable to order] shall, in suit thereon by a holder in due course, be permitted to deny the payee’s capacity, at the rate or the note or bill, to endorse the same.
1. Substituted by Act 8 of 1919, sec. 5 for “payable to, or to the order of, a specified person”.