Holder in due course is one who:
AReceives the instrument with notice of any defect in title
BIs the original payee under all circumstances
CAcquires the instrument for consideration, before maturity, in good faith, and without notice of any defect in the transferor's title
DIs the drawer
Answer & Solution
Correct answer: C. Acquires the instrument for consideration, before maturity, in good faith, and without notice of any defect in the transferor's title
1. Section 9 — a holder in due course (HDC) takes for consideration, before maturity, in good faith and without notice of any defect of title.
2. HDC enjoys special protections (Section 58).
3. Hence (B).
_Source: ICAI BoS CA Inter Paper 2 — Negotiable Instruments Act 1881_