This document provides an overview of negotiable instruments under Indian law. It defines key terms like instrument, negotiable, negotiable instrument and discusses the three main types - promissory notes, bills of exchange, and cheques. It outlines the essential characteristics and parties involved in each type of instrument. The document also explains concepts like holder, holder in due course, negotiation, presentment, dishonour and privileges provided to a holder in due course under law.
Payment in due course is the content of the Negotiable Instrument Act. Payment at the right time to parties will help to the expansion of business units
Payment in due course is the content of the Negotiable Instrument Act. Payment at the right time to parties will help to the expansion of business units
The presentation TRANSFER OF PROPERTY ACT, 1882 includes the object of the Act, property, transfer, nature of transfer, kinds of transfer, the difference between movable and immovable property etc.
This explain object of Indian Limitation Act 1963. It define limitation. Explains how limitation is computed, what is effect of death, acknowledgement and prescription.
Features of a Negotiable Instrument
Elements of Negotiability
Presumptions as to negotiable instruments
Promissory Note
Bill of Exchange
Cheque
Holder and Holder in due course
Negotiation, Indorsement and Assignment
Dishonour of negotiable instrument
Liability of Banker
The presentation TRANSFER OF PROPERTY ACT, 1882 includes the object of the Act, property, transfer, nature of transfer, kinds of transfer, the difference between movable and immovable property etc.
This explain object of Indian Limitation Act 1963. It define limitation. Explains how limitation is computed, what is effect of death, acknowledgement and prescription.
Features of a Negotiable Instrument
Elements of Negotiability
Presumptions as to negotiable instruments
Promissory Note
Bill of Exchange
Cheque
Holder and Holder in due course
Negotiation, Indorsement and Assignment
Dishonour of negotiable instrument
Liability of Banker
This presentation covers all the topics defined in Negotiable Instruments Act. It focuses on all the instruments in detail and provide an in-depth understanding of the topic.
A document that promises payment to a specified person or the assignee. The payee (the person who receives the payment) must be named or otherwise indicated on the instrument. A check is considered a negotiable instrument. This type of instrument is a transferable, signed document that promises to pay the bearer a sum of money at a future date or on demand. Examples also include bills of exchange, promissory notes, drafts and certificates of deposit.
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The programme is designed to render the students with a holistic education and deeper understanding of business tactics of global magnitude. We stress on conducting interactive study sessions which give birth to rational ideas and develop innovative thinking, live cases, e-learning and positive influence of our renowned guest speakers facilitates students’ abilities and aspirations. http://www.unitedworld.in/school-of-business/
The programme is designed to render the students with a holistic education and deeper understanding of business tactics of global magnitude. We stress on conducting interactive study sessions which give birth to rational ideas and develop innovative thinking, live cases, e-learning and positive influence of our renowned guest speakers facilitates students’ abilities and aspirations. http://www.unitedworld.in/school-of-business/
UWSB offers Post Graduate courses at its Ahmedabad and Kolkata campuses. Ahmedabad campus, approved by AICTE, offers Post Graduate Diploma in Management (PGDM). Kolkata campus offers Post Graduate Programme in Management along with an option of AICTE approved Post Graduate Diploma in Management (PGDM) and/or MBA. Our programmes aim to create value-instilled potential leaders by incorporating higher-management functions. http://www.unitedworld.in/school-of-business/
UWSB offers Post Graduate courses at its Ahmedabad and Kolkata campuses. Ahmedabad campus, approved by AICTE, offers Post Graduate Diploma in Management (PGDM). Kolkata campus offers Post Graduate Programme in Management along with an option of AICTE approved Post Graduate Diploma in Management (PGDM) and/or MBA. Our programmes aim to create value-instilled potential leaders by incorporating higher-management functions. http://www.unitedworld.in/school-of-business/
UWSB offers Post Graduate courses at its Ahmedabad and Kolkata campuses. Ahmedabad campus, approved by AICTE, offers Post Graduate Diploma in Management (PGDM). Kolkata campus offers Post Graduate Programme in Management along with an option of AICTE approved Post Graduate Diploma in Management (PGDM) and/or MBA. Our programmes aim to create value-instilled potential leaders by incorporating higher-management functions. http://www.unitedworld.in/school-of-business/
UWSB offers Post Graduate courses at its Ahmedabad and Kolkata campuses. Ahmedabad campus, approved by AICTE, offers Post Graduate Diploma in Management (PGDM). Kolkata campus offers Post Graduate Programme in Management along with an option of AICTE approved Post Graduate Diploma in Management (PGDM) and/or MBA. Our programmes aim to create value-instilled potential leaders by incorporating higher-management functions. http://www.unitedworld.in/school-of-business/
UWSB offers Post Graduate courses at its Ahmedabad and Kolkata campuses. Ahmedabad campus, approved by AICTE, offers Post Graduate Diploma in Management (PGDM). Kolkata campus offers Post Graduate Programme in Management along with an option of AICTE approved Post Graduate Diploma in Management (PGDM) and/or MBA. Our programmes aim to create value-instilled potential leaders by incorporating higher-management functions. http://www.unitedworld.in/school-of-business/
UWSB offers Post Graduate courses at its Ahmedabad and Kolkata campuses. Ahmedabad campus, approved by AICTE, offers Post Graduate Diploma in Management (PGDM). Kolkata campus offers Post Graduate Programme in Management along with an option of AICTE approved Post Graduate Diploma in Management (PGDM) and/or MBA. Our programmes aim to create value-instilled potential leaders by incorporating higher-management functions. http://www.unitedworld.in/school-of-business/
UWSB offers Post Graduate courses at its Ahmedabad and Kolkata campuses. Ahmedabad campus, approved by AICTE, offers Post Graduate Diploma in Management (PGDM). Kolkata campus offers Post Graduate Programme in Management along with an option of AICTE approved Post Graduate Diploma in Management (PGDM) and/or MBA. Our programmes aim to create value-instilled potential leaders by incorporating higher-management functions. http://www.unitedworld.in/school-of-business/
UWSB offers Post Graduate courses at its Ahmedabad and Kolkata campuses. Ahmedabad campus, approved by AICTE, offers Post Graduate Diploma in Management (PGDM). Kolkata campus offers Post Graduate Programme in Management along with an option of AICTE approved Post Graduate Diploma in Management (PGDM) and/or MBA. Our programmes aim to create value-instilled potential leaders by incorporating higher-management functions. http://www.unitedworld.in/school-of-business/
UWSB offers Post Graduate courses at its Ahmedabad and Kolkata campuses. Ahmedabad campus, approved by AICTE, offers Post Graduate Diploma in Management (PGDM). Kolkata campus offers Post Graduate Programme in Management along with an option of AICTE approved Post Graduate Diploma in Management (PGDM) and/or MBA. Our programmes aim to create value-instilled potential leaders by incorporating higher-management functions. http://www.unitedworld.in/school-of-business/
UWSB offers Post Graduate courses at its Ahmedabad and Kolkata campuses. Ahmedabad campus, approved by AICTE, offers Post Graduate Diploma in Management (PGDM). Kolkata campus offers Post Graduate Programme in Management along with an option of AICTE approved Post Graduate Diploma in Management (PGDM) and/or MBA. Our programmes aim to create value-instilled potential leaders by incorporating higher-management functions. http://www.unitedworld.in/school-of-business/
UWSB offers Post Graduate courses at its Ahmedabad and Kolkata campuses. Ahmedabad campus, approved by AICTE, offers Post Graduate Diploma in Management (PGDM). Kolkata campus offers Post Graduate Programme in Management along with an option of AICTE approved Post Graduate Diploma in Management (PGDM) and/or MBA. Our programmes aim to create value-instilled potential leaders by incorporating higher-management functions. http://www.unitedworld.in/school-of-business/
UWSB offers Post Graduate courses at its Ahmedabad and Kolkata campuses. Ahmedabad campus, approved by AICTE, offers Post Graduate Diploma in Management (PGDM). Kolkata campus offers Post Graduate Programme in Management along with an option of AICTE approved Post Graduate Diploma in Management (PGDM) and/or MBA. Our programmes aim to create value-instilled potential leaders by incorporating higher-management functions. http://www.unitedworld.in/school-of-business/
UWSB offers Post Graduate courses at its Ahmedabad and Kolkata campuses. Ahmedabad campus, approved by AICTE, offers Post Graduate Diploma in Management (PGDM). Kolkata campus offers Post Graduate Programme in Management along with an option of AICTE approved Post Graduate Diploma in Management (PGDM) and/or MBA. Our programmes aim to create value-instilled potential leaders by incorporating higher-management functions. http://www.unitedworld.in/school-of-business/
UWSB offers Post Graduate courses at its Ahmedabad and Kolkata campuses. Ahmedabad campus, approved by AICTE, offers Post Graduate Diploma in Management (PGDM). Kolkata campus offers Post Graduate Programme in Management along with an option of AICTE approved Post Graduate Diploma in Management (PGDM) and/or MBA. Our programmes aim to create value-instilled potential leaders by incorporating higher-management functions. http://www.unitedworld.in/school-of-business/
UWSB offers Post Graduate courses at its Ahmedabad and Kolkata campuses. Ahmedabad campus, approved by AICTE, offers Post Graduate Diploma in Management (PGDM). Kolkata campus offers Post Graduate Programme in Management along with an option of AICTE approved Post Graduate Diploma in Management (PGDM) and/or MBA. Our programmes aim to create value-instilled potential leaders by incorporating higher-management functions. http://www.unitedworld.in/school-of-business/
UWSB offers Post Graduate courses at its Ahmedabad and Kolkata campuses. Ahmedabad campus, approved by AICTE, offers Post Graduate Diploma in Management (PGDM). Kolkata campus offers Post Graduate Programme in Management along with an option of AICTE approved Post Graduate Diploma in Management (PGDM) and/or MBA. Our programmes aim to create value-instilled potential leaders by incorporating higher-management functions. http://www.unitedworld.in/school-of-business/
UWSB offers Post Graduate courses at its Ahmedabad and Kolkata campuses. Ahmedabad campus, approved by AICTE, offers Post Graduate Diploma in Management (PGDM). Kolkata campus offers Post Graduate Programme in Management along with an option of AICTE approved Post Graduate Diploma in Management (PGDM) and/or MBA. Our programmes aim to create value-instilled potential leaders by incorporating higher-management functions. http://www.unitedworld.in/school-of-business/
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Negotiable instruments act
1.
2.
3. INTRODUCTION
„Instrument „ means any written document by
which a right is created in favour of some
person.
“negotiable” – means whereby rights in an
instrument can be transferred by one person
to another
4. CONTD-
Thus, a negotiable instrument is a document
by which rights vested in a person can be
transferred to another person in accordance
with the provisions of the Negotiable
instruments Act 1881
5. NEGOTIABLE INSTRUMENTS
ORIGIN : In the year 1881.
SCOPE : Applicable in entire India except the
State of Jammu & Kashmir.
Applicability: Deals with law relating to three
specific instruments, viz. Promissory note, Bill of
exchange and cheque.
6. MEANING
There are certain documents which are freely
used in commercial transactions and monetary
dealings. These documents, if they satisfy
certain conditions are known as “Negotiable
Instruments.”
A Negotiable instrument is a method of
transferring a debt from one person to another.
7. S 13
A negotiable instrument means a promissory
note, a bill of exchange or a cheque payable
either to order or to the bearer, whether the
words „order‟ or ‟bearer‟ appear on the
instrument or not
8. Kinds of negotiable instrument
Negotiable instrument Negotiable instrument
By STATUTE . By custom or usage
1) Promissory note. 1) Bank draft.
2) Bill of exchange. 2) Pay orders.
3) Cheque. 3) Hundies.
4) Delivery order
Not negotiable instruments: Share certificate, bill of
lading, postal order
9. CHARACTERISTICS OF A NEGOTIABLE INSTRUMENT
1) Freely transferable: The property in a negotiable, instrument
passes from one person to another by a simple process, i.e., by
mere delivery if it is payable to bearer, and by indorsement and
delivery if it is payable to order.
2) Holder‟s title free from all defects: The holder in due course (one
who acquires the instrument in good faith and for consideration) gets
it free from all defects.
10. CONTD -
Example S sells certain goods to B. B gives
a promissory note to S for the price. He
refuses to pay the promissory note,
claiming that the goods are not according
to order. If S sues B on the note , B‟s
defence is good. But if he negotiates the
note to H, a holder in due course, B‟s
defence will be of no avail.
11. CONTD -
Recovery: He can sue upon the instrument in his own
name.
The transferee of the instrument need not give notice
of transfer to the party liable to pay.
A negotiable instrument can be transferred infinitum,
ie, can be transferred any number of times till
maturity.
12. PRE- SUMPTION OF NEGOTIABLE INSTRUMENT
Until the contrary is proved, the following
presumptions shall be made. (sec 118 & 119).
N.I was made, drawn, accepted, indorsed or
transferred for consideration.
NI Bearing a date was made or drawn on that
particular date only.
B.O.E was accepted within a reasonable time after
its date & before its maturity.
13. CONTD -
Transfer of a N.I were made in order in which they
appear.
It is presumed that a lost negotiable instrument is
duly stamped.
Holder of a negotiable instrument is a holder in due
course except the case where the instrument has
been obtained by fraud
14. PROMISSORY NOTE
Sec.4
“ 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”.
.
15. PARTIES
MAKER : The person who makes the promissory note
and promises to pay is called the Maker.
PAYEE : The person to whom the payment is to be
made is called the Payee.
HOLDER: The holder is either the payee or someone
to whom he may have indorsed (transfer) the note is
known as Holder.
ENDORSER: The person who indorses the note to
another is called the Endorser .
ENDORSEE: The person to whose favour the note is
endorsed is called the Endorsee
16. ESSENTIALS OF THE PROMISSORY NOTES
1. It must be in writing .
2. It must contain a promise or undertaking to pay a definite
sum of money.
3. The promise to pay must be unconditional.
4. It must be signed by the maker.
5. The payee must be identified & must be certain.
6. The sum payable must be certain.
7. The amount payable must be in legal tender in money of
India.
8. Other formalities – like date, place ,& stamp must be
mentioned.
17. EXAMPLE
a) I promise to pay Ram or order Rs.2000{PN}
b) I acknowledge myself to be indebted to Shiva in
Rs.5000 to be paid on demand, for value
received.{pn}
c) I am liable to Arnold Rs.3000 {Not PN}
d) I have taken Rs.10000 from John to whom I am
accountable for the same with interest. {Not PN}
b) I promise to pay Rs.10000 to George seven days
after his marriage with Julie. {Not PN}
18. FORMAT OF PROMISSORY NOTE
Rs. 1,000 Delhi, February10,2009
Three months after date I promise to pay Shyam or
order the sum of one thousand rupees, for value received.
To,
Shyam
222, Ashok Vihar
Delhi-110052
Stamp
Sd/-Ram
19. BILL OF EXCHANGE
Sec.5 :
“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.”
20. PARTIES
DRAWER: The person who makes the bill of exchange is called
drawer.
DRAWEE: The person who is directed to pay is called drawee.
PAYEE: The person to whom the payment is to be made is called
payee.
ACCEPTOR: When the drawee accepts the bill is called acceptor.
21. FORMAT OF BILL OF EXCHANGE
Rs. 500 Greater Noida,21 Feb.2009
Three months after the date pay to Ram or order the sum of Five Hundred
rupees , for value received.
To,
Shyam
235,Subhash marg
delhi-110006.
In case of need with Accepted
Canara Bank, Delhi Shyam Sd/-
Stamp
Krishna
22. ESSENTIALS FEATURES OF BILL OF EXCHANGE:
1. It must be in writing.
2. It must contain an order to pay a definite sum of money.
3. The order to pay must be unconditional.
4. It must be signed by the drawer (who draw money).
5. The drawer, the drawee &the payee must be identified &
must be certain.
6. The sum payable must be certain.
7. The bill must contain an order to pay the money in legal
tender in India.
8. It must contain the formalities like date, place & stamp
etc.
23. CHEQUE
Sec.6 :
“ A cheque is a bill of exchange drawn on a specified
banker & not expense to be payable on a specified
banker & not expense to be payable otherwise than on
demand & it includes the electronic image of a
truncated cheque & a cheque in the electronic form.
25. PARTIES
DRAWER: The person who makes a cheque is called Drawer.
DRAWEE: The person who is directed to pay is called Drawee.
PAYEE: The person to whom the payment is to be made.
26. ESSENTIAL FEATURES OF CHEQUE:
1. It is always drawn by a bank & not by any other institutions.
2. It always payable on demand.
3. A cheque can be bearer, order or crossed.
4. The drawee, that is, the banker named must honour the cheque by
making payment to the payee when the cheque is presented for
payment to the banker at his office during the usual office hours,
provided the cheque is properly and validly drawn and the drawer
has sufficient funds to his credit.
5. The signature on the cheque must tally with the specimen
signature of the concerned drawer.
6. A cheque must be dated.
27. CROSSING OF CHEQUES
CHEQUE CROSSED GENERALLY - Where a cheque bears across
its face an addition of the words “and company” or any abbreviation
thereof, between two parallel transverse lines, or of two parallel
transverse lines simply, either with or without the words “not
negotiable”, that addition shall be deemed a crossing, and the
cheque shall be deemed to be crossed generally. [section 123]
CHEQUE CROSSED SPECIALLY - Where a cheque bears across
its face an addition of the name of a banker,either with or without the
words “not negotiable”, that addition shall be deemed a crossing, and
the cheque shall be deemed to be crossed specially, and to be
crossed to that banker. [section 124].
28. CONTD -
PAYMENT OF CHEQUE CROSSED GENERALLY OR SPECIALLY -
Where a cheque is crossed generally, the banker on whom it is drawn
shall not pay it otherwise than to a banker. Where a cheque is crossed
specially, the banker on whom it is drawn shall not pay it otherwise
than to the banker to whom it is crossed, or his agent for collection.
[section 126].
CHEQUE BEARING “NOT NEGOTIABLE” - A person taking a cheque
crossed generally or specially, bearing in either case the words “not
negotiable”, shall not have, and shall not be capable of giving, a better
title to the cheque than the person from whom he took it had. [section
130].
Thus, mere writing words „Not negotiable‟ does not mean that the
cheque is not transferable. It is still transferable, but the transferee
cannot get title better than what transferor had.
29. HOLDER
Sec.8
The Holder of a Promissory note, B.O.E or CHEQUE
means any person entitled in his own name to the
possession thereof, and to receive or recover the
amount due thereon from the parties thereto. Where
the note, bill or cheque is lost or destroyed, its holder is
the person so entitled at the time of such loss or
destruction.
30. HOLDER
1) The person must be entitled to receive payment or receive the
amount by filling a suit in his own name against other parties to
negotiate the instrument giving a valid discharge.
2) In case instrument is lost from the person who was entitled to
receive the payment, the subsequent finder does not become
it‟s owner. Only the person who was entitled to receive the
payment initially is the real owner.
3) The person must have a legal right to possess the instrument
in his own name.
31. HOLDER IN DUE COURSE
Sec.9
Any person who for consideration becomes the possessor of the
promissory note, B.O.E or Cheque before the amount mentioned
in it becomes payable & without having sufficient cause to
believe that any defect existed in the title of the person from
whom he derives his title.
32. WHEN DOES A PERSON BECOMES A
HOLDER IN DUE COURSE
Before the amount mentioned in the instrument becomes payable.
1) Without having sufficient cause to believe that any defect
exists in the title of the person from whom, he derives his title
2) He becomes a possessor of a promissory note, b.o.e or cheque
.
3) If it is payable to the bearer.
4) Consideration has passed from him.
Illustration:- A is a payee for a valuable consideration of a bill
payable to order. He gets this instrument from B without
knowledge of any defect in B‟s title & its maturity.
In this e g. A is a holder in due course.
33. CONTD -
A holder of a negotiable instrument will not be a holder in due
course if:-
a) he has obtained the instrument by gift or by illegal method.
b) he has obtained the instrument after its maturity.
34. PRIVILEGES OF HOLDER IN DUE COURSE
1)Inchoate stamped instrument: A person, who has
signed & delivered to another a stamped but otherwise
inchoate instrument , is precluded from asserting, as
against a holder in due course, that the instrument has
not been filled in accordance with the authority given by
him, the stamp being sufficient to cover the
amount(sec.20).
2) Liability of prior parties: Every prior party to a
negotiable instrument is liable thereon to a holder in
due course until the instrument is duly satisfied
(sec.36).
35. CONTD -
3) Fictitious payee: Where a bill is drawn payable to the
drawer‟s order in fictitious name & is indorsed in the same
hand as the drawer‟s signature, the acceptor is not relieved
from liability to any other holder in due course, on the plea
that the drawer is fictitious(sec.42).
4) Conditional delivery: If a bill or not is negotiated to a
holder in due course, the other parties to the instrument
cannot avoid liability on the ground that the delivery of the
instrument was conditional or for a special purpose only.
36. CONTD -
5) Instrument cleansed of all defects: Once a negotiable instrument
passes through the hands of a holder in due course, it gets
cleansed of its defects provided the holder was himself not a party
to the fraud or illegality which affected the instrument in some
stage of its journey. Thus any defect in the title of the transferor
will not affect the rights of the holder in due course even if he had
knowledge of the prior defect provided he himself is not a party to
the fraud.
Example: A, by fraud, induces B to make a promissory note in his
favour. He indorses the note to C, who take it as a holder in due
course. C subsequently indorses the note to A, for value. A cannot
sue B on the note as he himself is a party to the fraud .
37. DIFFERENCE BETWEEN HOLDER AND HOLDER
IN DUE COURSE
A holder can obtain an
instrument without
consideration
If an instrument is
inchoate, a holder of such
instrument cannot get
good title in the instrument
A holder need not bother
about the defect, if any in
the title of the instrument
Obtains an instrument with
consideration and for value.
Holder in due course
acquires a good title even if
the instrument is inchoate.
Holder in due course who
acquires an instrument
knowingly the defect of the
title.
38. NEGOTIATION
Method of transfer
An instrument is said to be negotiated
when a promissory note,BOE,cheque is
transferred to any person so as to
constitute that person the holder of the
instrument
Transfer with an intention to transfer the
title of the instrument.
Negotiation by delivery
Negotiation by endorsement and delivery
39. CONTD-
Meaning of endorsement – An endorsement
means signing the negotiable instrument on
the back of ,or face thereof or, or on a slip of
paper annexed thereto
40. PRESENTMENT
Presentment for Acceptance (required
only in case of BOE)
Presentment for payment
Presentment made to the drawee.
Must be made before the date of maturity
41. DISHONOUR (S 92)
A negotiable instrument is said to be
dishonoured by non-payment when the
maker, acceptor or drawee, as the case
maybe makes default in payment upon being
duly required to pay the same.
Dishonour by non payment
Dishonour by non acceptance
42. BOUNCING OF CHEQUES (S 138- S142)
A cheque is said to be bounced or dishonored by non-
payment when the drawer of the cheque makes default
in the payment upon being duly required by the same.
If a cheque is dishonoured even when presented before
expiry of 6 months, the payee or holder in due course
is required to give notice to drawer of cheque within 30
days from receiving information from bank..
The drawer should make payment within 15 days of
receipt of notice.
If he does not pay within 15 days, the payee has to
lodge a complaint with Metropolitan Magistrate or
Judicial Magistrate of First Class, against drawer within
one month from the last day on which drawer should
have paid the amount.
43. CONTD -
The penalty can be upto two years imprisonment or fine
upto twice the amount of cheque or both. The offence
can be tried summarily. Notice can be sent to drawer by
speed post or courier. Offence is compoundable.
It must be noted that even if penalty is imposed on
drawer, he is still liable to make payment of the cheque
which was dishonoured. Thus, the fine/imprisonment is
in addition to his liability to make payment of the cheque.
44. NOTING
When a cheque is dishonoured generally
the bank who refuses payment returns
back the cheque gives reasons in writing
for the dishonour of the cheque.
Noting
The holder cause such dishonour to be noted
by a notary public upon the instrument or upon
a paper attached thereto or partly upon each
Noting consists in recording the fact of
dishonour by notary public
45. PROTEST
Protest is a formal certificate issued by the
notary public certifying the dishonour of
the bill or note.
It has to be done within a reasonable
period of time.
46. DISCHARGE FROM LIABILITY
By payment
By cancellation
By release
By non-presentment for acceptance of a
bill of exchange
By material alteration
47. BANKER AND CUSTOMER
No statutory definition of banker
NI Act defines a banker as any person acting
as a banker
Customer – A person becomes a customer of
a bank when the latter agrees to open an
account with the former. Thus, a customer is
a person who has some sort of account with
the banker. The duration of relationship is
immaterial.
48. OBLIGATIONS OF A BANKER
To honour cheques.
To keep a proper record of the transactions.
To abide by the instructions given by the
customer
To not disclose the state of his customer‟s
account or affairs
To claim interest on money lent
49. PROTECTION GRANTED TO BANKER
Protection of paying banker –
where a cheque payable to order purports to be
indorsed by or on behalf of the payee, the
drawee is discharged by payment in due course.
Where a cheque is originally expressed to be
payable to a bearer, the drawee is discharged by
payment in due course to the bearer thereof
50. CONTD-
Protection of collecting banker – A banker
who has in good faith received payment for a
customer‟s crossed cheque ,does not incur
liability , later if it is found that the title is
defective
51. CAMPUS OVERVIEW
907/A Uvarshad,
Gandhinagar
Highway, Ahmedabad
– 382422.
Ahmedabad Kolkata
Infinity Benchmark,
10th Floor, Plot G1,
Block EP & GP,
Sector V, Salt-Lake,
Kolkata – 700091.
Mumbai
Goldline Business
Centre Linkway
Estate,
Next to Chincholi Fire
Brigade, Malad (West),
Mumbai – 400 064.