Wakilii

Singh v Singh and Another (Civ. Case No. 152 of 1937)

East African Court of Appeal · [1938] EACA 210 · 1938 Judgment for Defendant AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for recovery on promissory note or alternatively on account stated or goods sold and delivered
Decision
Action dismissed with costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Where a promissory note payable to order is transferred by delivery without endorsement, the transferee cannot sue on the note in his own name. Mere possession is insufficient; the note must be endorsed to the transferee. The transferee's status is that of one in possession with the right to demand endorsement from the transferor. Additionally, where a promissory note is given in settlement of an account, the original causes of action for goods supplied, money lent, and account stated merge into the cause of action on the note.

Outcome

Action dismissed with costs

Facts

The plaintiffs claimed Sh. 18,15/30 on a promissory note dated 15 June 1933 drawn by the defendants in favour of the plaintiffs or order, or alternatively on an account stated and settled on the same date, or for goods sold and delivered and money lent. The plaintiffs had originally endorsed the note to one Maganlal Bhutt, who endorsed it to Barclays Bank. The bank subsequently endorsed the note back making it payable to the order of Maganlal Bhutt without recourse. Maganlal Bhutt then transferred the note by delivery to the plaintiffs without endorsing it. At the time the suit was instituted, the note was in the plaintiffs' possession but bore no endorsement in their favour. The note was payable to order, not to bearer.

Issues

  1. Whether a person in possession of a promissory note payable to order, which was delivered to him without endorsement, can sue on the note in his own name.
  2. Whether causes of action for goods supplied, money lent, and account stated merge into the cause of action on a promissory note given in settlement of those debts.

Orders

  • Action dismissed.
  • Costs awarded to the defendants.

Rules and key headnotes

Negotiable Instruments — Promissory Notes — Transfer Without Endorsement — Right to Sue
Where a promissory note payable to order is transferred by delivery without endorsement, the transferee cannot sue on the note in his own name because he is not a holder within the meaning of the Bills of Exchange Ordinance.
Negotiable Instruments — Definition of Holder — Bills of Exchange Ordinance
A holder of a bill or note under the Bills of Exchange Ordinance means the payee or endorsee who is in possession of it or the bearer thereof. A person who was the original payee but who negotiated the note and later received it back by delivery without endorsement does not regain the status of payee or become an endorsee.
Negotiable Instruments — Bearer versus Order — Requirements for Suit
A promissory note is payable to bearer only when it is expressed to be so payable. A note payable to order requires endorsement to the transferee before the transferee can sue on it; mere possession resulting from delivery is insufficient.
Merger of Causes of Action — Promissory Note Given in Settlement
Where a promissory note is given in settlement of an account for goods supplied and money lent, the original causes of action merge into the cause of action on the promissory note, and the creditor cannot sue on the original debts while the note remains in circulation.

Legislation cited (3)

  • Bills of Exchange Ordinance 1927 s.2
  • Bills of Exchange Ordinance 1927 s.8
  • Bills of Exchange Ordinance 1927 s.38

Cases cited (2)

  • Rehematullah Khan Kherdin v Shirkhan Punukhan (No. 297 of 1933)
  • Harrop v Fisher (142 E.R. 428)

Full judgment

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The original judgment as reported. Read the original PDF before relying on any passage.

Singh v Singh and Another (Civ. Case No. 152 of 1937) [1938] EACA 210 (1 January 1938)
Source: this page presents Wakilii’s issue analysis and metadata for a publicly reported Ugandan judgment. Any AI-generated summary is marked as such. Judgment text is sourced from the Uganda Legal Information Institute (ulii.org). Wakilii is not affiliated with ULII.