Section 3. The Explanation III, ins. by s. 2, ibid , (w.e.f. 15-6-2015)

4. Subs. by Act 2 of 1885, s. 2, for "When acceptance is refused and the bill is protested for non -acceptance." " Payee " 3. The Explanation III, ins. by s. 2, ibid , (w.e.f. 15-6-2015). 4. Subs. by Act 2 of 1885, s. 2, for "When acceptance is refused and the bill is protested for non -acceptance." " Payee ".—The person named in the instrument, to whom or to whose order the money is by the instrument directed to be paid, is called the "Payee". 8. " Holder ".—The "holder" of a promissory note, bill of exchange or cheque means any person entitled in his own name to the possession thereof and to receive or recover the amount due thereon from the parties thereto. Where the note, bill or cheque is lost or destroyed, its holder is the person so entitled at the time of such loss or destruction. 9 . " Holder in due course ".—"Holder in due course" means any person who for consideration became the possessor of a promissory note, bill of exchange or cheque if payable to bearer, or the payee or indorsee thereof, if[1] [payable to order,] before the amount mentioned in 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. 10. " Payment in due course ".—"Payment in due course" means payment in accordance with the apparent tenor of the instrument in good faith and without negligence to any person in possession thereof under circumstances which do not afford a reasonable ground for believing that he is not entitled to receive payment of the amount therein mentioned.