| Contents |
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History of the Legislation |
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Materials for revision |
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Suggestions of Chambers and Bankers' Associations considered |
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Suggestions that hundis and other negotiable instruments should be included |
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Hundis which conform to the Act |
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Language should not exclude an instrument if it comes within the definition of the Act |
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Whether other types of negotiable instruments should be included |
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Certification of cheques |
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Cheques marked Account payee |
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Scheme adopted for revision and major changes proposed |
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Conflict of laws |
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Section 1 |
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Section 3 |
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Banker |
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Notary public |
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Section 4 |
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Section 5, para 1 |
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Paras 2-4 |
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Sections 6-7 |
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Sections 8 |
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Sections 9 |
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Section 10 |
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Section 11-12 |
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Section 13 |
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Section 14 |
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Section 15 |
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Section 16 |
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Section 17 |
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Section 18 |
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Section 19 |
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Sections 20 |
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Section 21 |
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Section 22 |
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Days of grace |
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Sections 23-24 |
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Section 25 |
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Section 26 |
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Section 27 |
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Section 28 |
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Section 29 |
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Sections 30-32 and 41 |
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Sections 33-44 |
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Section 35 |
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Section 36 |
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Section 37-38 |
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Section 39 |
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Section 40-41 |
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Section 42 |
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Section 43-45 |
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Section 45A |
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Sections 46-48 |
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Section 49 |
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Section 50 |
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Section 51 |
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Section 52 |
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Section 53 |
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Section 54-55 |
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Section 56 |
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Section 57 |
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Section 58 |
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Section 59 |
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Section 60 |
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Section 61 |
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Section 62 |
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Section 63 |
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Section 64 |
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Section 65-67 |
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Section 70 |
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Section 71 |
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Section 72-74 |
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Section 75 |
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Section 76 |
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Section 77 |
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Section 79-80 |
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Section 81 |
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Sections 82 |
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Section 83 |
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Section 84 |
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Section 85-85A |
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Section 86 |
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Section 87 |
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Section 88 |
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Section 89 |
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Section 90 |
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Section 91 |
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Section 95 |
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Section 96 |
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Section 97 |
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Sections 98 |
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Sections 99-104A |
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Section 105 |
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Section 106 |
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Section 107 |
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Sections 108-113 |
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Section 114 |
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Sections 115-116 |
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Section 117 |
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Sections 118-120 |
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Sections 121-122 |
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Sections 123-127 |
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Section 128 |
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Section 129 |
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Section 130 |
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Section 131 |
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Sections 132-133 |
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Sections 134-136 |
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Section 137 |
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Sections 138-139 |
| Appendix I |
Proposals as Inserted in the body of The Existing Act (This is, However, not to be Treated as a Draft Bill) |
|
The Negotiable Instruments Act, 19 |
| Part I |
General |
| Chapter I |
Preliminary |
| 1. |
Short title, extent, and commencement |
| 2. |
Saving |
| 3. |
Operation of the Act on negotiable instruments |
| Part II |
Acquisition |
| 4. |
Definitions |
| Chapter II |
Form and Interpretation |
| 5. |
Applicability of the Contract Act |
| 6. |
Incapacity of minor |
| 7. |
Corporation's power |
| 8. |
Agent's authority |
| 9. |
Authority of partners |
| 10. |
Instrument made without consideration |
| 11. |
Partial absence or failure of money consideration |
| 12 |
Partial failure of consideration not consisting of money |
| 13 |
Certain sum, unconditional, certain person and fictitious payee |
| 14. |
Instruments payable on demand |
| 15. |
When instrument payable on demand overdue |
| 16. |
After sight |
| 17. |
Instrument payable at a determinable future time |
| 18. |
Effect of drawing or indorsing instrument payable to order |
| 19. |
Effect of ante-dating and post-dating |
| 20. |
Inchoate instrument |
| 21. |
Negotiable instrument when complete |
| 22. |
Immediate parties |
| 23. |
Difference in figures and words |
| 24. |
Ambiguous instruments |
| 25. |
Payees may be joint |
| 26. |
Signature in trade or assumed name |
| 27. |
Forged or unauthorised signature |
| 28. |
Defective title |
| 29. |
Maturity, how determined |
| Chapter III |
Negotiation |
| 30. |
Mode of negotiation |
| 31. |
Persons entitled to negotiate |
| 32. |
Requisites of indorsement |
| 33. |
Kinds of indorsements |
| 34. |
Indorsement in blank and in full |
| 35. |
Provisions for payee to apply to indorsee |
| 36. |
Conversion of indorsement in blank into indorsement in full |
| 37. |
Instruments indorsed blank |
| 38. |
Indorsement in blank followed by indorsement in full |
| 39. |
Restrictive indorsement |
| 40. |
Conditional indorsement |
| 41. |
Qualified indorsement |
| 42. |
Conditional delivery |
| 43. |
Negotiation by legal representatives |
| 44. |
Negotiation back before maturity |
| 45. |
Effect of negotiation |
| 46. |
When negotiability ceases |
| Chapter IV |
Rights of Holder and Holder in due Course |
| 47. |
Rights of holder |
| 48. |
Rights of holder of an instrument negotiated back to him |
| 49. |
Instrument acquired after dishonour or when overdue |
| 50. |
Accommodation note or bill |
| 51. |
Holder claiming through holder due in course |
| 52. |
Rights of holder in due course |
| 53. |
Holder s right to duplicate of lost instrument |
| Chapter V |
Liability of Parties |
| 54. |
Scope of Chapter |
| 55. |
Stranger signing instrument presumed to be indorser |
| 56. |
Liability of drawer or acceptor of a bill of exchange |
| 57. |
Liability of drawer or drawee of cheque |
| 58. |
Liability of a maker of a promissory note |
| 59. |
Liability of indorser of any instrument |
| 60. |
Extent of liability of parties |
| 61. |
Provision for contract to the contrary |
| 62. |
Liability of surety |
| 63. |
Duration of liability |
| 64. |
Liability of accommodation party and position of accommodated party |
| 65. |
Liability of a party inducing another to make etc., an instrument |
| 66. |
Liability of person signing as agent |
| 67. |
Liability of legal representative |
| 68. |
Transferor by delivery and transferee |
| 69. |
Presentment |
| 70. |
Notice of dishonour for non-payment when obligatory |
| 71. |
Necessity for noting and protest |
| Chapter VI |
Presentment for Payment |
| 72. |
Definition |
| 73. |
Rules governing presentment for payment |
| 74. |
What constitutes valid presentment and the mode of presentment |
| 75. |
When presentment unnecessary |
| Chapter VII |
Payment, Discharge and Interest |
| 76. |
Discharge by payment |
| 77. |
Instrument to be delivered on payment |
| 78. |
Other modes of discharge |
| 79. |
Discharge for non-presentment |
| 80. |
Discharge of parties not consenting to qualified or limited acceptance |
| 81. |
Discharge by material alteration |
| 82. |
Interest when rate specified and not specified |
| Chapter VIII |
Notice of Dishonour |
| 83. |
Dishonour |
| 84 |
Dishonour by non-payment |
| 85. |
Notice of dishonour by whom and to whom to be given |
| 86. |
Mode in which notice of dishonour should be given |
| 87. |
Time and place of notice |
| 88. |
Notice miscarried in post |
| 89. |
Party receiving must transmit notice of dishonour |
| 90. |
When party to whom notice given is dead |
| 91. |
When notice of dishonour is unnecessary |
| Chapter IX |
Noting and Protest |
| 92. |
Noting |
| 93. |
Protest |
| 94. |
Contents of protest |
| 95. |
Notice of protest |
| 96. |
Protest for non-payment after dishonour by non-acceptance |
| 97. |
When noting equivalent to protest |
| Chapter X |
Reasonable Time |
| 98. |
Reasonable time |
| 99. |
Reasonable time for giving notice of dishonour |
| 100. |
Reasonable time for transmitting such notice |
| Chapter XI |
Compensation |
| 101. |
Rule as to compensation |
| Chapter XII |
Special Rules of Evidence |
| 102. |
Presumptions as to negotiable instruments |
| 103. |
Presumption on proof of protest |
| 104. |
Estoppel against acceptor |
| 105. |
Estoppel against denying original validity of instrument |
| 106. |
Estoppel against denying capacity of payee to indorse |
| 107. |
Estoppel against denying signature or capacity of prior party |
| Chapter XIII |
Conflict of Laws |
| 108. |
Law governing liability of maker, acceptor or indorser of a foreign instrument |
| 109. |
Presumption as to foreign law |
| Part II |
Bills of Exchange |
| 110. |
Presentment |
| 111. |
Several drawees |
| 112. |
In whose favour a bill may be drawn |
| 113. |
Only drawee can be acceptor except in case of need or for honour |
| 114. |
Time for deliberation by drawee |
| 115. |
Acceptance by several drawees not partners |
| 116. |
Acceptance of bill drawn in fictitious name |
| 117. |
When presentment for acceptance is necessary |
| 118. |
Acceptance of overdue bill |
| 119. |
Time for presentment for acceptance of a bill payable after sight |
| 120. |
Rules as to presentment for acceptance and excuses for non-presentment |
| 121. |
Presentment by post |
| 122. |
Dishonour by non-acceptance and its consequences |
| 123. |
Qualified acceptance |
| 124. |
Non-presentment for payment in cases of qualified acceptance when does not discharge the acceptor |
| 125. |
Notice of dishonour for non-acceptance |
| 126. |
Liability of banker for negligently dealing with bill presented for payment |
| 127. |
Mode of giving notice of dishonour |
| 128. |
Drawee in case of need |
| 129. |
Acceptance and payment without protest |
| 130. |
Acceptance for honour |
| 131. |
How acceptance for honour must be made |
| 132. |
Acceptance not specifying for whose honour it is made |
| 133. |
Liability of acceptor for honour |
| 134. |
Payment for honour |
| 135. |
Two or more persons offering to pay for honour |
| 136. |
Rights and duties of payer for honour |
| 137. |
Calculation of maturity in case of a bill accepted for honour |
| 138. |
Set of Bills |
| 139. |
Holder of first acquired part entitled to all |
| Part III |
Promissory Notes |
| 140. |
Presentment of promissory note for sight |
| Part IV |
Cheques |
| 141. |
Cheque payable to order or bearer |
| 142. |
Revocation of banker's authority |
| 143. |
General and special crossing defined |
| 144. |
Cheque crossed "account payee" |
| 145. |
Crossing by drawer or after issue |
| 146. |
Crossing a material part of a cheque |
| 147. |
Payment of a cheque crossed generally or specially |
| 148. |
Duties of banker as to crossed cheques |
| 149. |
Liability of a banker paying crossed cheques otherwise than to a banker |
| 150. |
Protection to banker and drawer where cheque is crossed |
| 151. |
Cheque bearing words "not negotiable" |
| 152. |
Protection to collecting banker |
| 153. |
Protection to banker crediting cheque crossed "account payee" |
| 154. |
Cheque not operating as assignment of funds |
| 155. |
When cheque not duly presented and drawee damaged thereby |
| 156. |
Drafts |
| 157. |
Application of this chapter to drafts |
| Part V |
Miscellaneous |
| 158. |
Repeal |
| Appendix II |
Table A Showing the provisions in the existing Act and the corresponding provisions, if any, in Appendix I |
| Appendix III |
Table B Showing the provisions in Appendix I to the proposals and the corresponding provisions, if any, in the existing Act, the Bills of Exchange Act, 1882, and Uniform Negotiable Instruments Law |
| Appendix IV |
Showing the contents of the sections in Appendix I with the corresponding section in the existing Act |
| Appendix V |
Suggestions Regarding other Acts |
| Appendix VI |
Commercial Bodies & Associations whose Suggestions were Particularly Invited |
| Appendix VII |
Chambers of Commerce and Associations who Have Submitted Memorandum |
