Report No. 11
17. Whether other types of negotiable instruments should be included.-
Another major suggestion made by some of the Chambers is that certain other types of instruments recognised in the mercantile world should also be brought within the ambit of the Act. These documents fall under two categories:
(1) Documents under which money is payable, such as (i) debentures, (ii) bonds issued by companies, (iii) bearer bonds, (iv) bearer scrips, (v) bearer debentures, (vi) treasury bills, (vii) postal orders, (viii) share certificates, (ix) insurance certificates, (x) deposit receipts, and (xi) pay warrants.
(2) Documents relating to delivery of goods known as mercantile documents of title to goods, which are described in section 137 of the Transfer of Property Act.
The second class of documents referred to above are obviously outside the purview of the Act as they relate to delivery of goods arid not payment of money.
As regards the other class of documents which are negotiable by usage or custom we feel that no specific purpose would be served by including them in the Act except to give statutory recognition to the usage or custom, if any, by which they are negotiable. They will not be subject to the other provisions of the Act, such as presentment for payment or acceptance, notice of dishonour, or the liability of parties. It is also not possible to make a complete and exhaustive list of such instruments without undertaking an elaborate inquiry. Some of them are governed by special laws such as the Companies Act and the Insurance Act. We, therefore, feel that it is neither useful nor practicable to bring them within the Act.