14

The Negotiable Instrument Act 1881

Learning Objectives

In this chapter, the students come to know

  • Negotiable instruments like promissory note, bill of exchange and cheque.

  • Types of negotiable instrument.

  • Maturity period of negotiable instrument.

  • Negotiation, assignment of instrument.

  • Crossing of cheque.

  • Dishonour of instrument.

  • Noting and protesting

  • Hundi

14.1 INTRODUCTION TO NEGOTIABLE INSTRUMENTS

In India, there is a reason to believe that instruments to exchange were in use from early times and we find that papers representing money were introduced into the country, by one of the Mohammedan sovereigns of Delhi in the early part of the fourteenth century.

The word ‘hundi’, a generic term used to denote instruments of exchange in vernacular ...

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