Negotiable Instruments- Sections

NEGOTIABLE INSTRUMENTS ACT 1881 SECTIONSREFERANCE 4Definition of promissory note. 5Definition of bills of exchange. 6Definition of Cheque. 8Definition of holder of bills of exchange. 9Holder in due course. 11Inland instruments. 12Foreign instruments. 14Negotiation of bills of exchange. 15Endorsement of bills of exchange. 13Definition of negotiable instruments. 17Ambiguous instrument. 20Incomplete or inchoate instruments. 22Maturity of negotiable instruments. 23Maturity of bill or note payable so smany months after date or sight. 24Maturity of bill or note payable so many days after date or sight. 5Deals with when day of maturity is a holiday. 28Liability of agent signing. 29Liability of legal representative. 30Liability of drawer of a bill of exchange or cheque. 31Liability on cheques. 32Liability of maker of note and acceptor of bill. 33&34who can be acceptors of bills of exchange. 35Liability of endorser. 37 & 38Liability of maker, drawer, and acceptor as principal debtors. 40Discharge of endorser’s liability. 41Effect of forged endorsement on acceptor’s liability. 42Fictitious bills. 43Liability under accommodation bills / without consideration. 6, Para3Escrow. {note1} 50Restrictive endorsement. 51Who may negotiate bills of exchange. NOTE1: ESCROW: A negotiable instrument which is delivered conditionally or for a special purpose as a collateral security or for a safe custody only and not for the purpose of transferring absolutely the property therein, is called ESCROW. 52Qualified endorsement. 54Endorsement in blank. 56Partial endorsement. 59Negotiation of dishonoured or overdue instruments. 60Period of negotiation. 61Presentment of bills for acceptance. 64Presentment of promissory note for sight/ instrument for payment. 5ADefinition of bank draft. 91Dishonour of bills of exchange by non acceptance. 76 & 92 Dishonour of bills of exchange by non payment. 99Noting. 100Protest. 101Content of protest. 102Notice of protest. 108Acceptance for honour. 113Payment for honour. 118Presumptions of negotiable instruments. 123General crossing of a cheque. 124Special crossing of a cheque. 125Who may cross a cheque. 126-129Payment of crossed cheque. 130 “NOT NEGOTIABLE” crossing of a cheque. 131Protection of collecting banker in case of cheque. 132 & 133Bills in sets. 138Dishonour of cheque, drawer’s liability.