Liability of Negotiable Instrument

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Presented By
Dr. Niraj C. Chaudahri
Assistant Professor,
BE(E &Tc), MBA (Operation & Supply Chain
Management , Material Management & Marketing
Management ) PhD ( Operation Management )
1
Sanjivani College of Engineering, Kopargaon
Department of MBA
www.sanjivanimba.org.in
111 ( Legal & Business Environment )

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Parties To Negotiable Instrument
• Promissory Notes :-
• Maker
• Payee
• Holder
• Endorser and endorsee

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Parties To Negotiable Instrument
• Parties to cheque :-
• Drawer
• Drawee
• The Payee
• Holder
• Endorser and endorsee

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Parties To Negotiable Instrument
• Parties to bill of exchange :-
• Drawer
• Drawee
• Acceptor
• Payee
• Holder
• Acceptor for honour
• Drawee in case of need

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Liability of Negotiable Instrument
• Agency ,Section 27
• Agent Signing ,Section 28
• Drawer ,Section 30
• Drawee of cheque ,Section 31
• Maker of promissory note & Acceptor of bill of
exchange, Section 32
• Indorser ,Section 35
• Prior parties to holder in due course, section 36

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Liability of Negotiable Instrument
• Acceptor ,section 41
• Acceptor for bill of exchange, section 42
• Without consideration ,section 43
• Partial absence or failure of money –
consideration ,section 44
• Partial failure of consideration not consisting
of money ,section 45
• Unlawful consideration ,section 58

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Dishonor of Negotiable Instrument
• Dishonor by Non-Acceptance
• Dishonor by Non-Payment.
• Notice of Dishonour.

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Notice of Dishonour
• Noting : Noting is the authentic and official
proof of presentment and dishonour of the
instrument. Section 99
• Noting : means recording of the fact of
dishonour of the instrument by notary public
within a reasonable time after dishonour.

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Notice of Dishonour
• Protest : is a formal certificate of dishonour
of an instrument issued by the notary public
,Section 100.

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Notice of Dishonour
Noting Protest
Section 99 Section 100
Nothing is required to be first Protest is issues only after
nothing
Nothing is an apparent proof
which make clear that the
instrument is dishonored
Protest is the documentary
evidence or proof which is
accepted by the court.
It is reason of dishonour It is detail document of
dishonour
It is provisionally serve the
purpose of dishonour
It is authentic and satisfactory
evidence of dishonour