This document summarizes a presentation on negotiable instruments and related laws. It discusses key concepts like absolute title, freely transferable title, and essential elements of negotiable instruments. It defines promissory notes, bills of exchange, and cheques. It also covers concepts like hundis, reasons for dishonor or non-acceptance of cheques and bills of exchange, and measures to avoid fraud related to negotiable instruments. The document includes case studies and questions from attendees, and responses providing legal advice regarding cheque bouncing cases.

1. Law field study presentation
Presented by-
Palash goyal
1

2. AbsoluteTitle
A Negotiable instrument means promissory
note, bill of exchange, or cheque, payable either
to order or to bearer
FreelyTransferable
AbsoluteTitle
InWriting
Unconditional
Certain Sum
Payee must be a certain Person
Signature a must.
CertainTime
Delivery Essential
Stamping is Mandatory.
2

3. •In writing, signed, stamped
•Unconditional promise to pay
•Money only
•Certain party
•On demand or certain date
•Certain sum
•Parties – Drawer, Payee
Promissory Note
3

4. Bill of Exchange
•Writing, signed,
accepted, stampe
d
•Unconditional
order to pay
•Money only
•Certain party
•Certain sum
•Parties –
Drawer, Drawee
& Payee
4

5. Writing, signed
Unconditional
order
Issued by
specified
banker, certain
payee
On demand
Certain amount
Must bear a date
CHEQUES
5

6. HUNDIS
•Drawn in any local
language in accordance
with the custom of the
place.
•For transfer of money
without its actual
physical movement. 6

7. •Insufficient balance.
•Invalid Signature.
•Specific Reasons eg “a/c
closed, stopped payment”.
•Cancellation on cheques.
•Tampered cheques.
•When “payable at par” is not
mentioned for outstation
cheques.
Non-acceptance by Drawee.
•Drawee does not accept
within 24 hrs
•Drawee not entitled to
accept.
•Drawee is a fake person, or
disappears.
•Bill is conditional.
•Not signed by all drawees(in
case of partnership)
Non payment by Drawee at
maturity
CHEQUE BILLS OF EXCHANGE
7

8. Fraud
Intentional wrong doing
To cause loss or harm
To get personal benefit
Measures To Avoid Fraud.
oAfter online payment
make sure you call
customer care of your
bank.
oMake sure you keep
secrecy regarding your
negotiable instrument.
8

9. I am looking for advice regarding a cheque bouncing case against
my husband. his uncle has filed this case. My husband was owing
some money to his uncle for which he issued him two cheques, one
for dec 2010 n other for january 2011. In dec we gave him cash for
almost 70% of the amount we were suppose to give him as we got
the pr visa for canada and a have to soon fly for canada. At the time
when we gave him money, he said that he will give as the cheque
back as he was not having it at that moment. Then we came to
canada in a week. As per the verbal consent between my husband
and his uncle that my husband will pay the rest of the money in two
months and he will give back both the cheques. after coming here
when we called him regarding this he said that i will not give back ur
cheques and he totally refused that we havent given him any
money.
.
Case study
Simer
9

10. Then he started threatening on phone and
started abusing n then now after after a
year of all this things we found through
some relatives that he has filed a case
against my husband and also he has said
this to our relatives that court has issued
anon bale able warrant against my
husband. And to the main fact we havent
received any notice or any legal
documents regarding all this going on in
India.
So what should we do now. 10

11. Any cheque bouncing case can be won by the accused. All it
requires is some perseverance on the part of his lawyer. I say
this because the complainant has to prove many things before
he can drive home a conviction. He has to adduce evidence to
prove that there was a legal liability and the cheque was
issued to him by the accused in discharge of this legal liability.
Appear in the court and get hold of a really good lawyer
Regards,
Ashish Davessar
Advocate
Delhi, Chandigarh, Amritsar
08427414792
Ashish
11

12. Issue a stop payment order to your Banker...it can be done by
phone too. Ie. if your cheques have not been presented to the
bank and the same has not been actually honoured....by doing
this you could save yourself from a cheque bounce case...or
even if one has been then get saved from the 2nd case atleast....
prevention is better than cure. Especially since you are ot sure
on if there actually is a case.
1. Do you have any proof of the cash payment?
2. Any close trust worthy relatives who could co-ordinate with
you for the legal matters? If so do begin to speak to them to
know what the actual ground reality is - could begin with
enquiring in the local police station, your old neighbors of any
legal/court notices.
3. Approach the nearest Indian Embassy/High Commission -
they would be of big help to you.
Buzz
12

13. Thank for all the valuable advice. As we are in Canada
right now and my husband is not planning any trip for India
for another 2 years. So that anything we can do from here.
or if I go to India n do some proceeding for the case. And
also will there be any legal problem for me if I go to India. I
mean anything against me can be done by them.
Simmer
Do not go personally...handle from out of
India...U do not want to be stuck in India
when the rest of your family is in
canada...Learn to remote control
operation.
Buzz
Thanks for your advice. but the thing is I have my
parents n siblings there and I want to go n meet them
now. it means there can be some legal problems for me
too. what can I do from here
Simmer
13

14. Get them to cross check if there is a case against
you...if there is back off...else go!!
Buzz
THERE IS NO CASE AGAINST ME ITS AGAINST MY HUSBAND
FOR CHEQUE BOUNCING AND I DNT HAVE ANY CONCERN
WITH THIS CASE. WHICH WAS FILED AFTER WE LEFT INDIA.
EVEN THE CHEQUE WAS PRESENTED TWO MONTHS LATER TO
THE WRITTEN DATE. ANYWAYS MAIN CONCERN IS THAT IS
THERE ANY POSSIBILITIES IF HE CAN DRAG ME IN THIS CASE.
I AM PLANNING TO GO AND GET A LAWYER AS SOON AS I
REACH THERE FOR THE FOLLOWING CASE PROCEEDINGS.
WILL I BE ABLE TO PROCEED THE CASE ON HIS BEHALF.
Simmer
14

15. If the liability was incurred by your husband and he is the one who issued the
cheques, he alone can be made liable under the law. The complainant has no remedy
against you. The remedy under Section 138 NI Act is criminal in nature. Criminal
Liability does not fasten on to the relatives of the accused. Therefore, you cannot be
made liable unless and until you were a part of the entire transaction culminating in
the bouncing of the cheque/cheques. A cheque can be presented to the bank for
encashment anytime within its validity period or six months, whichever is larger. If
you have any documentary evidence which can vouch for the fact that your husband
paid off 70% of the debt, it will come to your aid. You can pursue the case on the
behalf of your husband.
Ashish Davessar
Advocate
no i am not apart of all this. N also we dont have any evidence because it was just
me n my husband who went to his uncle place to give the payment. Actualy he is
my husband's first uncle and we never even thought that he use this cheques for all
this things. I mean we thought that as we have paid some amount n we are wiling
to pay the other so everything is fine. its just after we left india some one
mistracked him of doing this. u know greed of money makes man to forget all
relations . Its just he wants as to pay him more money. Anyways as soon as i
reached there i will be hiring a lawyer for all this legal proceedings n see what
happens.
Simmer
15

16. Feel free to revert for anything more
Ashish Davessar
Advocate
If your relative informed you that a non bailable warrant has
been issued against your husband and have the copy of the
court summon, it would be best to knock the doors of court for
stay on execution of non bailable warrant. Once their is a
stay, their is no risk of coming to India for your husband. As far
as you are concerned their is no legal liablity upon you and
you are free to come and go.
lawyerscba
Thankx everyone for the advice.........
Simmer
Reference- legal service
India . com
Lnk-
http://legalservices.co.in/forum/top
ic/Advice-for-cheque-bouncing-
case.htm
16

17. THE INDIAN
CONTRACT
ACT 1872
17

18. A CONTRACT is an agreement creating and defining
obligations between the parties
According to HALSBURY, it is, “an agreement between
two or
more persons which is intended to be enforceable at law
& is
constituted by the acceptance by one party of an offer
made
to him by the other party to do or to abstain from doing
some
act.” 18

19. AGREEMENT = OFFER + ACCEPTANCE
According to Section 2(e) an agreement is
defined
as “ every promise and every set of
promises
forming the consideration for each other”.
A promise is defined as an accepted
proposal as
Section 2(b) says “ a proposal when
accepted
becomes a promise “ Therefore it can be
said that
an agreement is an accepted proposal.
CONTRACT = AGREEMENT+ENFORCEABILITY AT LAW
19

20. Essentials of a valid contract
•The agreement should be between two parties. An
•agreement is the result of a proposal or offer by
•one party followed by its acceptance by the other.
•The agreement should be between the parties
who are competent to contract.
•There should be a lawful consideration and
lawful object in respect of that agreement.
•There should be free consent of the parties,
when they enter into the agreement.
•The agreement must not be one, which has been
declared to be void.
20

21. Proposal of offer
The term proposal has been defined in section
2(a) as follows:
“ When one person signifies to another
his willingness to do or abstain from
doing anything with a view to obtaining
the assent of that other to such act or
abstinence, he is said to make a
proposal.”
21

22. The willingness to do or abstain from
doing something,
i.e. the proposal or offer must be
made with a view to obtain the assent of the
other party thereto.
For example, A’s
willingness to sell his radio set to B for Rs.
500 if B accepts to purchase the same,
amounts to proposal by A for the sale of the
radio set. But if a statement is made without
any intention to obtain the assent of the other
party thereto that cannot be termed as
proposal.
22

23. Intention to create legal relationship
In order that an offer, after acceptance, can result in a valid
contract it is necessary that the offer should be made with an
intention to create legal relationship. Promise in the case of a
social engagements is generally without an intention to create
legal relationship, such an agreement cannot be considered to
be a contract. Thus an agreement to go for a walk, to go to
movie, to play some game, or entertain another person with a
dinner, cannot be enforced in a court of law. Sometimes the
party may expressly mention that it is not a formal or legal
agreement, whereas in some other cases such an intention could
be presumed from their agreement.
The test to know the intention of the parties is objective and not
subjective. Merely because the promisor contends that there
was no intention to create obligation would not exempt him from
liability
23

24. In the case of Meritt Vs. Meritt, (1970) the
husband and wife were the joint owners of a
building which was subject to a mortgage to a
building society.
The husband left the
matrimonial home to live with another
woman. At that time, at the insistence of the
wife, the husband signed a note saying that
the wife will pay all outstanding amounts in
respect of the house and in return “I will
agree to transfer the property into your
sole ownership”. It was held that in this
case it was clear that the parties intended to
create legal relationship and, therefore, the
husband was bound by the contract
24

25. Communication of offer
An offer when accepted results in a
contract. An offer can be accepted only
after the same has come to the knowledge
of the offeree. It means that the offer has to
be communicated to the offeree in order that
the offeree can accept it. According to
section 4,
“ the communication of a proposal is
complete when it comes to the knowledge
of the person to whom it is made.”
25

26. an offer has not yet been communicated, even if somebody
acts according to the terms of the offer, he cannot be deemed to
be the acceptor of the offer. Acting in ignorance of an offer does
not amount to the acceptance of the same. This point may be
explained by referring to the case of Lalman Shukla Vs. Gauri
Dutt. (1913)
In this case the defendant’s nephew absconded from home. The
plaintiff, who was defendant’s servant, was sent to search the
missing boy. After the plaintiff had left in search of the boy, the
defendant issued handbills announcing a reward of Rs. 501 /- to
anyone who might find the boy. The plaintiff who was ignorant of
this reward, was successful in searching the boy. When he
came to know of the reward, which had been announced in his
absence, he brought an action against the defendant to claim this
reward. It was held that since the plaintiff was ignorant of the
offer of reward, his act of bringing the lost boy did not amount to
the acceptance of the offer, and therefore, he was not entitled to
claim the reward. 26

27. 27