The endorsement of a negotiable instrument followed by delivery transfers the property therein with the right of further negotiation to the endorsee. The cause of action which the endorsee has by virtue of the endorsement is available to him notwithstanding the death of the endorser. The legal representatives of the endorsee can continue the suit.

JUDGEMENT :- The plaintiff was the petitioner in this Court. After filing the civil revision petition, he died on 22-1-1966 and on an application by his legal representatives, they were brought on record as the present petitioners in C.M.P. No. 4412 of 1966. It is significant that at the time when the legal representatives of the original petitioner desired to bring themselves on record, there was no opposition by the respondent.

2. The petitioners instituted the action against the defendant on the foot of a promissory note, of which he secured assignment from the original payee. The assignment, however, was for purposes of collection and that this is so, is not in dispute. The original payee died after such endorsement in favour of the petitioner. After the death of the original payee, the petitioner instituted this suit on the foot of such an assignment of the promissory note Ex. A-1 in his favour. The suit was resisted on the ground that since the original payee died, the endorsee has no further cause of action, as the agency which was expressly created by such an endorsement should be deemed to have been terminated by the death of the original payee.

3. The learned District Munsif accepted the contention of the defendant that on the death of the original payee, the endorsement made prior to his death by the original payee, which, according to him, created a power equivalent to that of an agent, terminated with the death of the original payee within the meaning of Sec. 201 of the Indian Contract Act. He, therefore, dismissed the suit mainly basing his reasoning on the ground that the relationship between the original payee and the endorsee is that of principal and agent and not (sic) agency having been terminated by the death of the principal, the agent can no longer institute an action on the strength of such an endorsement.

The original petitioner came up in revision before this Court attacking this reasoning of the learned District Munsif. As already stated during the pendency of the civil revision petition, the legal representatives of the original petitioner were brought on record and they are the contesting petitioners before me. I shall consider the question whether such contesting petitioners have a cause of action to continue and agitate the relief in this civil revision petition by themselves at a later stage. It is, however, necessary to dispose of the primary question, whether the relationship between the original payee and the endorsee is that of principal and agent and whether the reasoning of the learned District Munsif is correct.

4. I do not agree that a holder of a negotiable instrument, who secures the same by endorsement in a manner known to law loses his right of action by reason of the death of the original payee. In fact, by such an endorsement, he secures the title to the instrument, which title is enforceable by him in a manner ordinarily known to law. Such a title so vested in him, cannot be divested by reason only of the tact that the original payee died soon after such as endorsement and that the suit itself was brought in on the foot of such an endorsement by the endorsee after the death of the original payee. In fact, a case reported in Ramzan Ali v. Vallaswami Pillai, (1910) 8 Ind Cas 967 (LB), on all fours has been cited before me by Mr. T.R. Ramachandran, the learned counsel for the contesting petitioners. In that case a promissory note was drawn by one R in favour of M or to his order. M endorsed it and handed it over to V for collection. After M's death, V sued on the note.

It was contended in defence that as the note did not pass to V for consideration and V's authority ceased on M's death, he could not recover the money without having obtained Letters of Administration or a succession certificate. The learned Judge repelling such a contention, held, that the note being negotiable, its indorsement followed by delivery passed the property in it to V and he became holder of it and that, therefor

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