C.R. Venkatarama Ayyar v. B.S. Krishnaswami Chettiar

1. The question for our determination is whether a promissory note can be transferred otherwise than by endorsement. There is considerable clash of judicial opinion, the older case law inclining to the view that as provided by the Negotiable Instruments Act endorsement is necessary and the later case law to the view that a promissory note can be transferred like any other chose in action: c.f. A.I.R. 1930 Mad. 197. We see no reason to differ from the later course of decisions. It is strenuously argued that Section 137 T.P. Act, which exempts certain mercantile documents from the provisions of Section 130, T.P. Act, also denies to such documents the method of Section 130, T.P. Act. We see no reason to accept such an interpretation. Section 137 gives an extended privilege to mercantile documents, and in no way is restrictive. We agree with the lower appellate Court that the transfer in this case is effectively made by the deed. The suit must accordingly be decreed with costs throughout.