Section of the negotiable instruments act, 1881 does not define a negotiable instrument although it mentions only three kinds of negotiable instruments namely, bills, notes and cheques. It extends to the whole of india but nothing herein contained affects the indian paper currency act, 1871, 3 of 1871. Expected mcq on negotiable instruments act with answers. However, sec on of the act describes a nego able instrument to mean a promissory note or a bill of exchange or a cheque payable to order or to bearer. A negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or bearer. A ding to section 9 of the negotiable instrument act, 1881, holder in d ny person who becomes the. A negotiable instrument is any transferable document which satisfies certain conditions. Where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid, either because of the amount of money standing to the credit of that account is insufficient to. Negotiable instrument as defined under section of the negotiable instruments act. Banking public financial institutions and negotiable instruments clause amendment act. Effect of recent amendments in negotiable instruments act. Which section of negotiable instruments act deals with promissory note. Landmark supreme court judgment on sec 8 of negotiable.
The court observed that the act was enacted and section 8 thereof incorporated with a specified object of making a special provision by incorporating a strict liability so far as the cheque as a. Once the instrument is transferred, the holder obtains full legal title to the instrument. N i act, payment and collection of cheques a to z in banking. Inland instrument 12 foreign instrument negotiable instrument 14. Whether the payee or holder of a cheque can initiate prosecution for an offence under section 8 of the negotiable instruments act, 1881 for its. Negotiable instruments act 1881 section 8 citation.
The negotiable instruments amendment and miscellaneous. Noting when a promissory note or bill of exchange has been dishonoured by nonacceptance or nonpayment, the holder may cause such dishonour to be noted by a notary public upon the instrument, or upon a paper attached thereto, or partly upon each. Pdf negotiable instrument act and cheque used as collateral. A negotiable instrument can be transferred from one person to another. Negotiable instruments act ppt negotiable instrument. Negotiable instruments act 1881 section 31 year 2016. The negotiable instrument act, 1881 legislative department. The negotiable instruments act, 1881 destinationca. A negotiable instrument means a promissory note bill of exchange or cheque payable either to order or to bearer only the above instruments are governed by ni act. How to prepare a complaint under section 8 of negotiable. The negotiable instruments act, 1881 indian kanoon.
Effect of recent amendments in negotiable instruments act on the pending cases as well as appeals. Instrument obtained by unlawful means or for unlawful consideration. According to section of the negotiable instruments act, a negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer. Defence which may not be allowed in any prosecution under section 8. Hence, the negotiable instruments amendment and miscellaneous provisions act 2002 was passed. Mcq on negotiable instruments act with answers in pdf.
We provide all services of drafting and vetting of legal formats, legal documents. Negotiable instruments act, 1881 bare acts law library. Local extent, saving of usages relating to hundis, etc. The negotiable instrument act was originally drafted in 1866 by. Where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out. A draft is an instrument that orders a payment to be made.
Students taking ca ipcc exams or students preparing for ethics will find the file very useful. Procedure, 1973, the court trying an offence under section 8 may order the. The negotiable instruments act, 1881 hereinafter called n. The negotiable instruments act, xxvi of 1881 by mian ghulam hussain. It has no concern with dishonour of other negotiable instruments. Where any cheque dr awn by a person on an account maintained by hi m with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid, either because of the amount of money standing to the credit of that account is insufficient to honour the cheque or that it. It is a classic example where, as part of an attempt to evolve a healthy norm of commercial behavior, the principal of social engineering through the instrumentality of. But in section 1, it is also described that local extent, saving of usage relating to hundis, etc. Negotiable instruments amendment act, 2015 to amend ni. In the information technology act, 2000 21 of 2000 hereinafter referred to as the principal act, in section 1, in subsection 4, for clause a, the following clause shall be substituted, namely. Drafts and notes are the two categories of instruments.
The income tax department never asks for your pin numbers, passwords or similar access information for credit cards, banks or other financial accounts through email the income tax department appeals to taxpayers not to respond to such emails and not to share information relating to their credit card, bank and other financial accounts. How many total sections are there in the negotiable instruments act. Negotiable instruments act 1881 summary is available for download at the excellent download file is in the format of pdf. Every negotiable instrument shall be governed by the provisions of this act, and no usage or custom at variance with any such provision shall apply to any such instrument. Instrument negotiable till payment or satisfaction. Show all sections the negotiable instruments act, 1881. Legal notice under section 8 format download against return of cheque, to be served to the drawer before filing criminal complaint us 8 of of negotiable. In the information technology act, 2000 hereinafter in this chapter referred to as the principal act, in section l, in subsection for clause the be substituted, namely a negotiable instrument other than a cheque as defined in section of the negotiable instruments act, 1881 26 of. Legal representative cannot by delivery only negotiate instrument endorsed by deceased. Critical analysis of section8 of negotiable instruments act. An act to define and amend the law relating to promissory notes, bills of exchange and cheques. These instruments pass freely from hand to hand and thus form an integral form part this modern businesses instruments.
This act may be called the negotiable instruments act, 1881. Nothing herein contained affects the law relating to paper currency. Objective of section 8 of negotiable instrument act,1881. Definition of negotiable instrument according to section of the negotiable instruments act, 1881, a negotiable instrument means promissory note, bill of exchange, or cheque, payable either to order or to bearer. An act further to amend the negotiable instruments act, 1881. A promissory note, bill of exchange or cheque payable either to order or to bearer is called negotiable instrument. Section 8 in the negotiable instruments act, 1881 indian kanoon. An act to define and amend the law relating to promissory notes, bills of exchange and. The ingredients of the offence as contemplated under sec. Subject to the provisions of section 82, clause c, payment of the amount due on a promissory note, bill of exchange or cheque must, in order to discharge the maker or acceptor, be made to the holder of the instrument. Instrument acquired after dishonor or when overdue. Definitions of a promissory note a statutory definition section 4 of the negotiable instruments act, 1881 defines the promissory note as under.
Evolution of negotiable instrument act, 1881 with reference to amendments from 2002 to 2015. Section 8 of negotiable instruments act, reflects the anxiety of the legislature to usher in a new healthy commercial morality through the instrumentality of the penal law. Every negotiable instrument shall be governed by the provisions of this act, and no usage or custom at variance with any such provision. The negotiable instruments act, 1881 state bank of pakistan. Negotiable instruments act ppt free download as powerpoint presentation. Ca inter negotiable instruments act, 1881 ner ca study web. Introduction of negotiable instruments act 1881 summary. Ingredients 3 the ingredients of the offence as contemplated under. Ppt on section 8 negotiable instruments act download.
It also has to be noted that in our country, the law relating to negotiable instruments, is governed by the negotiable instruments act 1881. Notice format under section 8 negotiable instruments act. Where amount is stated differently in figures and words. The objective of sec 8 of ni act is to promote the efficiency of banking operations and to ensure credibility in transacting business through cheques is mentioned in the case law modi cements ltd. Beutelt from the time the negotiable instruments act was first recommended for adoption it has been the fashion among legal writers to advocate various amendments to and changes in the act. One respondent notes that an instrument show ing certain formal defects cannot, under the law of his country. Negotiable instrument is a promissory notes, bill of exchange, or cheques.
Negotiable instrument act free download as powerpoint presentation. But it does not necessarily follow that there can be no other negotiable instruments than those enumerated in the act. According to international norms, a cheque is a bill of exchange drawn on a bank and. An act to define and amend the law relating to promissory notes. The negotiable instruments act, 1881 a negotiable instrument is a written order to pay a fixed sum of money on demand or at a certain time. And this act was enacted and section 8 of ni act thereof. The supreme court referred to the object of section 8 of the act in present case. Negotiable instruments act, 1881 is an act in india dating from the british colonial rule, that is. Section 8 of negotiable instruments act legal helpline. Jaiib chapter on n i act, payment and collection of cheques jaiib chapter on kycaml cft norms pmla act users online.