Under Section 9 of the Negotiable Instruments Act 1881, a 'holder in due course' is a person who, for consideration, obtained possession of a negotiable instrument -

Section 9 of the Negotiable Instruments Act 1881 defines a holder in due course as any person who for consideration became the possessor of a promissory note, bill of exchange or cheque payable to bearer, or the payee or indorsee of an instrument, before it became payable, and without having sufficient cause to believe that any defect existed in the title of the person from whom he derived his title. The three essential requirements are payment of consideration, possession before maturity and good faith. Acquisition at or after maturity, or by gift without consideration, disqualifies the holder, as does taking with notice of dishonour or of a defective title. Possession before maturity, for consideration and in good faith is the essence of the definition.