Negotiable Instrument-Promissory note-s-Negotiation by widow oj deceased
payee-Whether subsequent indorsee is holder in due course

The appelJant signed two promissory notes payable to Nazareth Kur-
kudjian who died before the notes were endorsed. Before letters of admin-
istration of his estate were taken out his widow endorsed the notes to
Karakand and Haddan who endorsed them to the respondents. The ap-
pellant resisted payment on the ground that the widow's endorsement was

.• Court: Owen C.I., Halford J. and Evans R.G.L

wrong and the notes were not legally negotiated and thus no title passed to
the endorsee.

Held: (i) A promissory note made to the order of the payee can only
be negotiated by the endorsement of the holder or his legal representative.
(ii) The endorsees, the respondents, are not holders in due course be-
cause the notes endorsed as they were, were not complete and regular.

Appeal

1934. Owen C.J.: The facts of this case are short and not in
dispute. On July 14, 1932 the appellant signed two promissory notes
of a total value of £E.1oo payable to the order of one Nazareth Kur-
kudjian. Nazareth Kurkudjian died while the notes were still in his
possession and unendorsed. His widow obtained possession of them
and endorsed them as follows:

"Payez a l'ordre de Messieurs Karakand
et Hadded.

Valeurs recu en complet.

Sgd. N.N. Kurkudjian
pour heritiers Nazareth Kurkudjian."

Karakand and Haddad endorsed them in tum to the order of
Tenawi Brothers, the present respondents.

At the time of the widow's endorsement, no letters of adminis-
tration of the estate of Nazareth Kurkudjian had been taken out. Let-
ters were ultimately granted to the Official Administrator.

The maker of the promissory notes resists payment on the ground
shortly that the widow's endorsement was wrong, and the notes have
therefore not been lawfully negotiated and no title has passed to the
endorsees.

He is clearly right. A promissory note made to the order of the
payee can only be negotiated by the endorsement of the holder, com-
pleted by delivery. The payee (the holder) never endorsed these
notes. On his death the only person who could endorse them was his
legal personal representative, i.e., the duly appointed executor or ad-
ministrator of his estate. Neither his heirs nor his widow bad the
right to endorse in such representative capacity, and the delivery of
the notes could not therefore invest the transferee with the right to sue
under them. They had no title to transfer.

It has been urged, and was actually held by the district judge
that the indorsee has open to bim all the rights of a holder in due