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-Group 10
Section -A
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d A law relating to negotiable instruments
d Deals with promissory notes, bills of
exchange & cheques
d Act extends to whole of India
d The Act came into existence on 1st March,
1882
d The latest amendment to the act was
made in 1988
12/8/2010 The Negotiable Instruments Act,1881 2
d Jhat is a negotiable Instrument?
d Negotiable by Statute
Promissory Note : -
Parties Involved: -
d Maker
d Payee
ÿ
d At drawer's instance
d At holderƞs instance
d At collecting Bankerƞs instance
Crossing of Cheques
d General crossing
d Special crossing
d Bill in sets
d Maturity & days of grace
d Payment in due course
d Interest on bills & notes
d Minors
d Persons of unsound mind
d Corporations
d Agents
d Partners
d Hindu Joint ½amily
d Legal Representatives
d Drawer
d Drawee
d Acceptor
d Payee
d Holder
d Indorser
d Indorsee
d Drawee in case of need
d Acceptor of honour
d 3)Parties to a cheque: -
Maker, Drawee, Payee, Holder,
Indorser, Indorsee
12/8/2010 The Negotiable Instruments Act,1881 18
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1)By Negotiation
d Negotiation by delivery
d Negotiation by indorsement & delivery
2)By Assignment
d ½orm of notice.
Contents of protest:
d The instrument or literal transcript of the instrument.
d The name of the person for whom and against whom the
instrument has been protested.
d The reason for dishonour.
d The place and time of dishonour.
d The signature of the Notary Public
d The date
d Sum Payable
d Time of payment
d Place of payment & addition of place of
payment
d Rate of interest
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12/8/2010 The Negotiable Instruments Act,1881 49
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1. Jhen a Cheque is post-
post-dated and presented
for payment before that date
2. Lack of sufficient funds
3. The funds are not available for the purpose
4. Cheque is of doubtful legality
5. Jhen the Cheque is not duly presented
6. Signature doesn't match
7. Cheque presented at a branch where the
customer has no account
8. Jhen the Cheque has become stale
12/8/2010 The Negotiable Instruments Act,1881 50
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