Present: Dalton J. and Jayewardene A.J.

UMMA   SALOOMAR   v.   HASSIM.

21-D. C. Colombo, 22,866.

    Promissory   note-Endorsement   in blank-Negotiation   by   delivery- Holder for value.

An endorsement in blank makes a note payable to bearer.

Such a note is negotiated by delivery and when value has been given for it, the holder is a holder for value against all parties except the person from whom he receives it.

The compromise of a claim may be a good consideration for a promissory note.

APPEAL from a judgment of the District Judge of Colombo.  The plaintiff sued the defendant on a promissory note for Rs. 5,000 made by the defendant in favour of one S. L. Naina Marikar Hadjiar and endorsed and delivered by the latter to her. The defendant denied that Naina Marikar had endorsed and delivered the note to the plaintiff for valuable consideration or that the plaintiff was the lawful holder thereof. The defendant further pleaded that he granted the note to Naina Marikar to be held by him as part security for the payment to a brother of the defendant, one Abdul Raheem, of a sum of Rs. 15,000, in con­sideration of the said Raheem havi