Whether a person who has obtained possession of an instrument by theft, or under a forged endorsement is a holder under the Negotiable Instrument Act, 1881? Discuss.

According to Section 8 of the Negotiable Instruments Act, 1881 a person is a holder of a negotiable instrument who is entitled in his own name to the possession of the instrument, and to recover or receive its amount from the parties thereto. It is not every person in possession of the instrument who is called a holder. To be a holder, the person must be named in the instrument as the payee, or the endorsee, or he must be the bearer thereof. A person who has obtained possession of an instrument by theft, or under a forged endorsement, is not a holder, as he is not entitled to recover the instrument in his own name. The holder implies de jure (holder in law) holder and not de facto (holder in fact) holder. An agent holding an instrument for his principal is not a holder although he may receive its payment.