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NI Act Part 2, Lien
What is a Negotiable Instrument as defined under the Negotiable Instruments Act, 1881?
A negotiable instrument is a written document that entitles the holder to a sum of money and is transferable by delivery or endorsement, conferring a good title on the transferee who takes it in good faith and for value.
What is a 'bearer instrument' under the Negotiable Instruments Act?
An instrument payable to the person who holds it.
Which sections of the NI Act deal with dishonour of cheques?
Sections 138 to 147 of the Negotiable Instruments Act deal with the offence and penalties related to dishonour of cheques due to insufficiency of funds or if it exceeds the amount arranged to be paid.
What is the period of validity of a cheque as per RBI guidelines?
Three months from the date of issue.
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