Negotiable Instrument Act 1881
The Negotiable Instrument Act 1881
Compiled By Neelakshi Jaidka
OBJECTIVES After reading this lesson, you should be able to- • Understand meaning, essential characteristics and types of negotiable instruments; • Describe the meaning and marketing of cheques, crossing of cheques and cancellation of crossing of a cheque; • Explain capacity and liability parties to a negotiable instruments; and • Understand various provisions of negotiable instrument Act, 1881 regarding negotiation, assignment, endorsement, acceptance, etc. of negotiable instruments. INTRODUCTION * The Negotiable Instruments Bill was passed by the Council and received assent on December 9, 1881. The Act came into force from March 1, 1882. * Prior to its enactment, the provision of the English Negotiable Instrument were applicable in India, * It extends to the whole of India except the State of Jammu and Kashmir. * The Act operates subject to the provisions of Sections 31 and 32 of the Reserve Bank of India Act, 1934 * Premable "An Act to define and Law relating to Promissory Notes, Bills of Exchange and cheques"
MEANING: - a negotiable instrument means an instrument the property in which is acquired by any one who takes it bonafide and for the value notwithstanding any defect in the title of the prior party
.
DEFINITION [SEC 13] A negotiable instrument means - A promissory note; or
- Bill of exchange; or
- Cheque
- Payable either to order or Bearer.
CHARACTERISTICS OF NEGOTIABLE INSTRUMENT {SEC 13}
1 Freely transferable from one person to another person.
2 The holder in due course obtains good title of the instrument notwithstanding any defect in the previous holder.
3 HDC of a negotiable instrument can sue on the instrument in his own name.
4 Transferable infinite times till its maturity.
PRESUMPTIONS AS TO NEGOTIABLE INSTRUMENT {sec 118}
1. CONSIDERATION:-Every negotiable instrument was made,
Compiled By Neelakshi Jaidka
OBJECTIVES After reading this lesson, you should be able to- • Understand meaning, essential characteristics and types of negotiable instruments; • Describe the meaning and marketing of cheques, crossing of cheques and cancellation of crossing of a cheque; • Explain capacity and liability parties to a negotiable instruments; and • Understand various provisions of negotiable instrument Act, 1881 regarding negotiation, assignment, endorsement, acceptance, etc. of negotiable instruments. INTRODUCTION * The Negotiable Instruments Bill was passed by the Council and received assent on December 9, 1881. The Act came into force from March 1, 1882. * Prior to its enactment, the provision of the English Negotiable Instrument were applicable in India, * It extends to the whole of India except the State of Jammu and Kashmir. * The Act operates subject to the provisions of Sections 31 and 32 of the Reserve Bank of India Act, 1934 * Premable "An Act to define and Law relating to Promissory Notes, Bills of Exchange and cheques"
MEANING: - a negotiable instrument means an instrument the property in which is acquired by any one who takes it bonafide and for the value notwithstanding any defect in the title of the prior party
.
DEFINITION [SEC 13] A negotiable instrument means - A promissory note; or
- Bill of exchange; or
- Cheque
- Payable either to order or Bearer.
CHARACTERISTICS OF NEGOTIABLE INSTRUMENT {SEC 13}
1 Freely transferable from one person to another person.
2 The holder in due course obtains good title of the instrument notwithstanding any defect in the previous holder.
3 HDC of a negotiable instrument can sue on the instrument in his own name.
4 Transferable infinite times till its maturity.
PRESUMPTIONS AS TO NEGOTIABLE INSTRUMENT {sec 118}
1. CONSIDERATION:-Every negotiable instrument was made,