Historical philosophical, theoretical, and legal foundations of special and i...
Negotiable Instrument Act, 1881
1.
Adv. Sandip D. Yadav
Assistant Professor,
K.J.Somaiya college of Arts and Commerce,
Mumbai
Negotiable Instrument Act, 1881
2.
Negotiable -Transferable
Instrument – Written Document
Act come into force from 1st march, 1881
Applicable to whole of India…..
Gives right 1) Right to receive amount
2) Right to transfer
Negotiable Instrument Act,
1881
3.
Negotiable instrument includes promissory
note, bill of exchange or cheque payable either to
order or to bearer. (Section 13)
Promissory Note(Pro-note) (Section 4)
Bill of exchange (Bills) (Section 5)
Cheque (Section 6)
Meaning..
4. 1) Inland Instrument
2) Foreign Instrument
3) Bearer Instrument
4) Order Instrument
5) Demand Instrument
6) Time Instrument
7) Inchoate Instrument
8) Ambiguous Instrument
Classification of Negotiable Instruments
5. Promissory Note
I/ We promise to pay Mr. Amol Bhosale on demend
or order the sum of Rs. 10000(Ten Thousand only)
with interest at the rate of 12% per month for value
received in cash/cheque____________ Dated
_________ on 31st August, 2019
Signature
Full Address
6.
Promissory note‖.—A ―promissory note‖ is an instrument
in writing containing an unconditional undertaking
signed by the maker, to pay a certain sum of money
only to, or to the order of, a certain person, or to the bearer
of the instrument.
Promissory Note (Section 4)
7. 1) In writing
2) Express promise to pay
3) Unconditional promise
4) Maker’s Signature
5) Amount should be certain
6) Money only
7) Payee should be certain
8) Stamp duty
9) Certain Parties
10) Transferable
Essential Elements of Promissory Note
9.
A ―Bill of exchange‖ is an instrument in writing
containing an unconditional order signed by the maker,
directing a certain person, to pay a certain sum of money
only to, or to the order of, a certain person, or to the bearer
of the instrument.
Bill of Exchange(Section 5)
10. Mumbai
1st January, 2019
Three months after date pay to Mr. Aditya or order the
sum of rupees two thousand only for value received.
sd
Akash Sinha
To,
Nilesh Chopara,
F 501, D.N.Road
Mumbai
Bill of Exchange
Rs. 2000
11.
1) In writing
2) Express order to pay
3) Unconditional order
4) Drawer’s Signature
5) Amount should be certain
6) Money only
7) Payee should be certain
8) Stamp duty
9) Certain Parties
10) Transferable
Essential Elements of Bill of Exchange
12. Basis Bill of exchange Promissory Note
Drawn by Creditors Debtors
Contain An order to pay Promise to pay
Acceptance Required Not required
Payee Drawee and payee may be
same
Drawer and payee cannot
be same
No. of parties Three Two
Liability Secondary and conditional Primary and absolute
Difference Between Bill of Exchange
and Promissory Note
13.
“A cheque is a bill of exchange drawn on a specified
banker and expressed to be payable otherwise on
demand and it includes electronic image of a truncated
cheque and a cheque in the electronic form.”
CHEQUE (Sec.6)
14.
1) Open Cheque
i) Bearer Cheque
ii) Order Cheque
2) Crossed Cheque
3) Blank Cheque
4) Post dated Cheque
5) Stale Cheque
6) Self Cheque
7) Bankers Cheque
Classification of Cheque