Negotiable Instruments Act, 1881 — section 28A

28A. Transferor by delivery and transferee.—(1) Where the holder of a negotiable instrument payable to bearer negotiates it by delivery without indorsing it, he is called a “transferor by delivery”. 1 Subs. by Act 38, of 1997, s.2. 2 Subs. by the Negotiable Instruments (Amdt.) Ordinance, 1962 (49 of 1962), s. 14, for the original paragraph. 3 Subs. by the Negotiable Instruments (Amdt.) Ordinance, 1962 (49 of 1962), s. 15, for “as mentioned in section 26”. 4 Section 27A ins. ibid., s. 16. 5 Subs. ibid., s. 17, for the original section. 6 Section 28A, ins. ibid., s. 18.

(2)A transferor by delivery is not liable on the instrument.

(3)A transferor by delivery who negotiates a negotiable instrument thereby warrants to his immediate tarnsferee, being a holder for consideration, that the instrument is what it purports to be, that he has a right to transfer it, and that at the time of transfer he is not aware of any defect which renders it valueless.]