What do you mean by negotiable instrument Act 1881?
Negotiable Instruments Act, 1881 is a law relating to all negotiable instruments such as promissory notes, bills of exchange and cheques. The word “negotiable instrument” means a document which is transferable from one person to another. Such a person can sue upon the instrument in his own name.
What are the main features of negotiable instrument Act 1881?
Features of Negotiable Instruments
- Easily Transferable: A negotiable instrument is easily and freely transferable.
- Must be in Writing: All negotiable instruments must be in writing.
- Time of Payment must be Certain: If the order is to pay when convenient then such an order is not a negotiable instrument.
What are the negotiable instruments discussed in the act?
Section 13 of the Negotiable Instruments Act states that a negotiable instrument is a promissory note, bill of exchange or a cheque payable either to order or to bearer. Negotiable instruments recognised by statute are: (i) Promissory notes (ii) Bills of exchange (iii) Cheques.
How negotiable instruments are classified as per Negotiable Instruments Act, 1881?
The Negotiable Instruments Act, 1881 is responsible for governing such instruments in India. This law, however, deals only with cheques, bills of exchange and promissory notes. However, this does not mean that only negotiable instruments of these three types get recognition under the law.
Why was the Negotiable Instruments Act of 1881 re-drafted?
In 1880 by the Order of the Secretary of State, the Bill had to be referred to a new Law Commission. On the recommendation of the new Law Commission, the Bill was re-drafted and again it was sent to a Select Committee which adopted most of the additions recommended by the new Law Commission.
What was the Negotiable Instruments Act of 2002?
Parliament enacted the Negotiable Instruments (Amendment and Miscellaneous Provisions) Act, 2002 (55 of 2002), which is intended to plug the loopholes. This amendment Act inserts five new sections from 143 to 147 touching various limbs of the parent Act and Cheque truncation through digitally were also included and…
What is section 138 of Negotiable Instruments Act?
In June 2020, the Finance Ministry in the Government of India proposed the decriminalisation of a number of white-collar crimes, including cheque bouncing under Section 138 of the Negotiable Instruments Act, in order to improve the ease of doing business as well as to reduce imprisonment rates.
When was criminal remedy of penalty added to Negotiable Instruments Act?
Of course on Dishonoured cheque there is a civil liability accrued. In order to ensure promptitude and remedy against the defaulters of the Negotiable Instrument a criminal remedy of penalty was inserted in Negotiable Instruments Act, 1881 by amending it with Negotiable Instruments Act, 1988.