Negotiable Instrument Act
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What is a negotiable instrument as defined under the Negotiable Instruments Act, 1881?
A negotiable instrument is a written document that entitles a person to a sum of money and is transferable by delivery or by endorsement and delivery, conferring title on the holder in due course free from defects.
What is the minimum notice period required before filing a complaint under Section 138 of the NI Act?
15 days written notice to the drawer is mandatory
Which three instruments are expressly recognised as negotiable instruments under the NI Act, 1881?
The NI Act, 1881 expressly recognises promissory notes, bills of exchange, and cheques as negotiable instruments under Section 13.
What is the maximum punishment prescribed under Section 138 of the NI Act for cheque dishonour?
Imprisonment up to two years or fine up to twice the cheque amount
How does the NI Act, 1881 define a promissory note?
A promissory note is an instrument in writing (not being a bank note or currency note) containing an unconditional undertaking signed by the maker to pay a certain sum of money to a specified person or the bearer of the instrument.
What is a 'full endorsement' or special endorsement under the NI Act?
Endorsement specifying the name of the person to whom instrument is endorsed
What is a bill of exchange as defined under Section 5 of the NI Act, 1881?
A bill of exchange is an instrument in writing containing an unconditional order signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person or the bearer of the instrument.
Under which Section of the NI Act is a cheque defined?
Section 6 of the Negotiable Instruments Act, 1881
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