Section 28ATransferor by delivery and transferee

s. 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”. (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 transferee, 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.]

1. 6. Sections 28A, 29A, 29B and 29C were inserted by section 19 of the Negotiable Instruments (Amendment) Ordinance, 1962 (Ordinance No. XLIX of 1962)