4. Anyone knows History?
The Act was Originally drafted in 1886 by 3rd India law
Commission and introduced in December,1867.
The Bill had to be redrafted in 1877 due to criticism by
local government
Again in 1880 by the order of secretory of state the bill
had be redrafted
Thus drafted Forth time was introduced in the council was
passed into 1881 being the Negotiable instrument act,1881
8. A Promissory Note is a legal financial instrument issued by
one party, promising to pay the debt owed to another party
What is Promissory Note ?
The limitation period for a promissory note to file a suit is 3 years from the
date of execution or from the date of acknowledgement
9. Parties to Promissory Note:
Maker
The Person to whom the
payment is made
Payee
The Person to who
Makes the note
Promisor Promisee
11. 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
• or to the order of, a certain person or to the bearer of the
instrument.
What is Bills of Exchange?
12. Requirement of a BOE:-
Parties should be certain
Every Bill of exchange must be stamped
It should be specifically mentioned date and Address/Place
Order to pay
Time of payment must be indicated in the bill with certainity
The amount payable must be certain
The consideration of BOE pay by money only
15. A “cheque” is:
• a bill of exchange
• drawn on a specified banker and
• not expressed to be payable otherwise than on demand and
• it includes the electronic image of a truncated cheque and a
cheque in the electronic form.
What is Cheque
16. Requirement of a Cheque:-
A cheque must be an order in writing.
It must contain an unconditional order
A cheque must be signed by the maker
The amount must be specifically mentioned in figures and words
A cheque may be drawn payable to order or bearer. There are two
kinds of cheques prevailing nowadays
They are: a) it may be a bearer or order cheque; and b) it may be a self
cheque
The cheque must contain the date.
17. • It should be in writing
• Freely Transferable
• Right of person to receive money and a corresponding
liability of person to pay money
• Transferability i.e., can be transferred any number of
times, till its present
Features of Negotiable Instrument
18. A Negotiable Instrument is subject to certain presumption
• Consideration
• Date
• Time of acceptance
• Transfer
• Order of endorsement
• Stamp
Presumption
Presumption
19. • Insufficient account Balance
• Overwriting
• Signature Mismatched
• Expired Cheque/Time
Barred cheque
• Damaged cheque
• Mismatched of amount or
digits
• Resubmission of the cheque
• Filling a complaint
• An alternative Civil
Complaint
• Demand Notice
Cases of cheque Dishonor?
When Cheque is Bounce, Rights and remedies:-
20. Section 138- Dishonor of Cheque
• These section were added to this act by an amendment dated
01.04.1989
• Section 138 – Cheque Dishonor /cheque bounce
• According to Sec 138 ,any person who has issued a cheque
which ultimately dishonor by Bank in any reason
21. Key things to remember in case of cheque Dishonor
Cheque has to be
presented within 3
month from date of
Drawn
Collect the Cheque
and Return Memo
from bank
Send Legal Notice
for demand of
Money within 30
days of date of
Cheque Bounce
If you don’t
received payment
within 15days file a
complaint.
The Court will
issue the summon
to the Drawer.
The drawer has to
present himself in
the court to settle
the issue.
Accused can be punished with imprisonment for 2 years
OR
fine twice the amount of Cheque
OR
Both
22. What is Negotiable ?
History
Types Of Negotiable Instrument
Promissory Note, Bills of Exchange, Cheque
Section 138-Dishonour of cheque
Features of Negotiable instrument
Presumption