Partial Indorsement

Partial Indorsement

When a part of the amount of the instrument is endorsed, it is called partial indorsement. It is void:

Example: A holds a bill for Rs. 800     A endorses thus

“Pay Rs. 400 to B or order” (or)

“Pay B or order Rs. 400 and to C or order Rs. 400”

But if the part of the amount of the instrument is already paid, the unpaid balance may be endorsed thus. “Pay B or order Rs. 400, being unpaid residue of the bill”.