The document discusses negotiable instruments under the Negotiable Instruments Act of 1881. It defines negotiable instruments as those that can be transferred between parties, such as checks, drafts, bills of exchange, and some promissory notes. The key requirements for an instrument to be negotiable are that it must be in writing, signed, an unconditional promise to pay a fixed sum, freely transferable, and payable on demand or at a definite time. The main types of negotiable instruments are promissory notes, bills of exchange, and checks. Dishonor or bouncing of a check is a criminal offense, with punishments including fines and imprisonment.
KINDS OF DEBENTURES
CHARACTERISTICS OF DEBENTURES
Rules and Guidelines on Debentures
A debenture is the most important instrument and method of raising the loan capital by the company. A debenture is like a certificate of loan or a loan bond evidencing the fact that the company is liable to pay a specified amount with interest and although the money raised by the debentures becomes a part of the company’s capital structure, it does not become share capital.
KINDS OF DEBENTURES
CHARACTERISTICS OF DEBENTURES
Rules and Guidelines on Debentures
A debenture is the most important instrument and method of raising the loan capital by the company. A debenture is like a certificate of loan or a loan bond evidencing the fact that the company is liable to pay a specified amount with interest and although the money raised by the debentures becomes a part of the company’s capital structure, it does not become share capital.
Discharge of Contract "PART 1" (Chapter 12) - Business LawSandeep Sharma
PPT on "Discharge of Contract" for BBA & B.Com 1st year students, CA, CPT, CS & CMA Foundation.
Business Law PPT by Sandeep Sharma.
(Meaning with suitable example & explanation)
In this presentaion concept of negotiable instrument, types of negotiable instrument, holder and holder in due course, endorsement , how endorsement is done, kinds of endorsement insturment obtain by unlawful means and dishonor is included.
Negotiable Instruments Act 1881
Significance of negotiable instruments
Features of negotiable instruments
Cheque Meaning
Types of Cheque
MICR – Meaning
Crossing
Crossing of Cheque
Holder in due course
Payment in due course
Endorsement
Paying Banker
Dishonour of Cheque
Statutory protection to a paying Banker
Material Alteration
Statutory protection in case of a Materially altered Cheque
Collecting Banker
Duties and Liabilities of Collecting Banker
Protection of Collection Banker
Discharge of Contract "PART 1" (Chapter 12) - Business LawSandeep Sharma
PPT on "Discharge of Contract" for BBA & B.Com 1st year students, CA, CPT, CS & CMA Foundation.
Business Law PPT by Sandeep Sharma.
(Meaning with suitable example & explanation)
In this presentaion concept of negotiable instrument, types of negotiable instrument, holder and holder in due course, endorsement , how endorsement is done, kinds of endorsement insturment obtain by unlawful means and dishonor is included.
Negotiable Instruments Act 1881
Significance of negotiable instruments
Features of negotiable instruments
Cheque Meaning
Types of Cheque
MICR – Meaning
Crossing
Crossing of Cheque
Holder in due course
Payment in due course
Endorsement
Paying Banker
Dishonour of Cheque
Statutory protection to a paying Banker
Material Alteration
Statutory protection in case of a Materially altered Cheque
Collecting Banker
Duties and Liabilities of Collecting Banker
Protection of Collection Banker
According to Section 13 (a) of the Act, “Negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer, whether the word “order” or “ bearer” appear on the instrument or not.”
In 2020, the Ministry of Home Affairs established a committee led by Prof. (Dr.) Ranbir Singh, former Vice Chancellor of National Law University (NLU), Delhi. This committee was tasked with reviewing the three codes of criminal law. The primary objective of the committee was to propose comprehensive reforms to the country’s criminal laws in a manner that is both principled and effective.
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Guide on the use of Artificial Intelligence-based tools by lawyers and law fi...Massimo Talia
This guide aims to provide information on how lawyers will be able to use the opportunities provided by AI tools and how such tools could help the business processes of small firms. Its objective is to provide lawyers with some background to understand what they can and cannot realistically expect from these products. This guide aims to give a reference point for small law practices in the EU
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Lifting the Corporate Veil. Power Point Presentationseri bangash
"Lifting the Corporate Veil" is a legal concept that refers to the judicial act of disregarding the separate legal personality of a corporation or limited liability company (LLC). Normally, a corporation is considered a legal entity separate from its shareholders or members, meaning that the personal assets of shareholders or members are protected from the liabilities of the corporation. However, there are certain situations where courts may decide to "pierce" or "lift" the corporate veil, holding shareholders or members personally liable for the debts or actions of the corporation.
Here are some common scenarios in which courts might lift the corporate veil:
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Undercapitalization: If a corporation is formed with insufficient capital to conduct its intended business and meet its foreseeable liabilities, and this lack of capitalization results in harm to creditors or other parties, courts may lift the corporate veil to hold shareholders or members liable.
Failure to Observe Corporate Formalities: Corporations and LLCs are required to observe certain formalities, such as holding regular meetings, maintaining separate financial records, and avoiding commingling of personal and corporate assets. If these formalities are not observed and the corporate structure is used as a mere façade, courts may disregard the corporate entity.
Alter Ego: If there is such a unity of interest and ownership between the corporation and its shareholders or members that the separate personalities of the corporation and the individuals no longer exist, courts may treat the corporation as the alter ego of its owners and hold them personally liable.
Group Enterprises: In some cases, where multiple corporations are closely related or form part of a single economic unit, courts may pierce the corporate veil to achieve equity, particularly if one corporation's actions harm creditors or other stakeholders and the corporate structure is being used to shield culpable parties from liability.
1. Group Members:
Tasbeeh Fayaz Ali 17585
Hira Zainab 17084
Areeba Ahmed 17442
Saba Ishtiaq 18060
Mahrukh Rehman 17961
Abdullah Shaikhani 17107
Negotiable Instrument Act, 1881
Submitted to: Mansoor Ali Shahani
2. Negotiable means transferable.
The negotiation that goes on refers to the
transfer of the instrument between two
people, or from one bank to another or even
from one country to another.
Negotiable Instrument Act 1881
3. What is an instrument?
In the broadest sense, almost any agreed upon medium
of exchange could be considered a negotiable instrument.
In day to day banking, a negotiable instrument usually
refers to checks, drafts, bills of exchange, and some
types of promissory notes.
Definition and Meaning
4. •Be in writing
•Be signed by the maker or drawer
•Be an unconditional promise or order to pay
•State a fixed amount of money
•Be freely transferable from one to another person
•Be payable on demand or at a definite time
•Be payable to order or to bearer.
Nature of negotiable instrument
are:
5. Types of Negotiable
Instruments
There are 3 main types of negotiable
instruments. They are as follows:
1. Promissory Notes
2. Bill of Exchange
3. Cheque
6. Promissory Notes
Section 4 of the Act defines, “A promissory note is
an instrument in writing (note being a bank-note
or a currency note) containing an unconditional
undertaking, signed by the maker, to pay a
certain sum of money to or to the order of a
certain person, or to the bearer of the
instruments.” An instrument to be a promissory
note must possess the following elements.
It must be in writing
It must understand promise or clear
understanding to pay
Promise to pay must be unconditional
7. Bill of Exchange
Section 5 of the Act defines, “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”
(1) It must be in writing.
(2) It must be signed by the drawer.
(3) The drawer, drawee and payee must be certain.
(4) The sum payable must also be certain.
(5) It should be properly stamped.
(6) It must contain an express order to pay money
and money alone.
8. Classification of Bills
1. Inland and foreign bills.
(2) Time and demand bills.
(3) Trade and accommodation bills.
9. Cheque
Section 6 of the Act defines “A cheque is a bill of
exchange drawn on a specified banker, and not
expressed to be payable otherwise than on
demand”.
A cheque is bill of exchange with two more
qualifications, namely,
It is always drawn on a specified banker, and
It is always payable on demand
Distinction between Bills of Exchange and
Cheque
10. Dishonor of Cheque
What is a cheque?
A cheque is one form of a bill of exchange.
However, all bills of exchange are not cheques. A
cheque is always drawn on a bank or a banker.
What do we mean by dishonor of cheque?
11. CASES
Case number one: When any cheque, drawn by
a person for the discharge of any liability is
returned by the bank unpaid, because of
insufficiency of the amount of money, the cheque
is said to have been dishonored
Case number two: The cheque amount exceeds
the amount that can be paid by the bank under an
arrangement entered into between the bank and
the drawer of the cheque
12. Compensation payable in case of
dishonour.
Certain rules must be followed in case of dishonour
of promissory note, bill of exchange or cheque.
○The holder is entitled to the amount due upon the
instrument together with the expenses properly
incurred in presenting, noting and protesting it.
13. Continued…
○ Receive the sum at current rate of exchange
between the twomplaces.
○An endorser who has paid the amount is entitled
to that amount plus interest on that amount at a
particular percent per annum until realization is
made.
○ A bill by the party dishonoured might be drawn
on the party liable to compensate him inclusive of
all taxes and expenses incurred during the whole
process.
14. Punishment on Bouncing of Cheques
A dishonored cheque is one, which when presented is
refused payment by the bank because of insufficient
funds or because it is not in order, dishonestly issuing
a cheque is a criminal offence in Pakistan.
489-F Dishonestly issuing a cheque: Whoever
dishonestly issues a cheque towards re-payment of a
loan or fulfillment of an obligation which is dishonored
on presentation shall be punishable with
imprisonment which may extend to three years and
with fine unless he can establish, for which the burden
of proof shall rest on him, that he had made
arrangements with his bank to ensure that the cheque
would be honored and that the bank was at fault in
not honoring the cheque.
15. Types of Cheque Fraud
There are Four main types of cheque fraud:
Counterfeit – cheques not written or authorized by
legitimate account holder.
Forged – Stolen cheque not signed by account
holder.
Altered – an item that has been properly issued by
the account holder but has been intercepted and the
payee and/or the amount of the item have been
altered.
Dishonestly issuing a cheque. (Section 489F of
Pakistan Penal Code)– Whoever dishonestly issues a
cheque towards re-payment of a loan or fulfillment of
an obligation
which is dishonored on presentation, shall be
punishable with imprisonment which may extend
to three years, or with fine, or with both.
16. Continued...
The offence under this section is cognizable by
police, non-bailable and compoundable.
“ Whoever dishonestly issues a cheque towards
re-payment of a finance or fulfillment of an
obligation which is dishonored on presentation,
shall be punishable with imprisonment which may
extend to one year, or with fine or with both,
unless he can establish, for which the burden of
proof shall rest on him, that he had made
arrangements with his bank to ensure that the
cheque would be honored and that the bank was
at fault in not honoring the cheque”.
17. And…
Issuance of cheque dishonestly is an offence
under the statute both civil and criminal remedies
could be availed simultaneously in such matters.
You can lodge First Information Report against
the signatory and at the same time can also file a
civil suit, there is no legal bar if criminal and civil
proceedings continue simultaneously. Before
lodging F.I.R. notice of dishonur of cheque should
also be given.
18. Case Study
Case
By means of fall preference A has obtain from B a
cheque crossed “not negotiable” he took that
cheque to a bank (other than drawee bank) which
paid it. B sues the bank for conversion.
Has A committed any offence or irregularity.
Under the negotiable instrument act.
Is B entitled to get any relief?
How will you decide the case
19. Answer
The given case is under the chapter of negotiable
instrument which means promissory notes, bills of
exchange or cheque payable either to order or to
bearer.
In this set case because of fall preference A obtain a
cheque from B a crossed cheque saying not
negotiable. He took the cheque to bank (collecting
banker) which paid it. Here the not negotiable word
came on crossing because of this crossing the
cheque becomes made available to pay to bearer that
is to anyone who holds it therefore here A did a lawful
negotiation as he got a cheque and went to the
collecting banker who collects the cross checks on
behalf of their customer, Because of not negotiable
tittle bank paying in good faith and without negligence
to their regular customer to ensure the interest of
20. Judgement
Here the cheque is crossed with the the label “not
negotiable” which means the transferee cannot get a better
title than that of transferor. It also means that it can be paid
only to a certain person. A negotiable cheque is one which
is made payable to bearer that is to anyone who “holds it.
Here because of fall preference A has obtain a cheque
because of that “not negotiable” cross cheque gives
authority to receive the payment of check therefore A
followed the rules and regulations covered under
negotiable instrument hence A the did not committed
any offence or irregularity under the Negotiation
instrument.
Here because of fall preference A obtain a cheque from B
with the cross cheque “not negotiable” because of this
crossing the cheque becomes made available to pay to
bearer that is to anyone who holds it. Hence here B will
not get any relif as the transaction is lawful under the
negotiable instrument act, 1881.