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Where can I get Test Series and Practice Sets on Negotiable Instruments Act 1881
tesTopper provides a remarkable plateform for practicing Negotiable Instruments Act 1881 for all state judicial services examinations and public prosecutors officers examinations such as Higher judicial services, additional district judge exam, judicial magistrate exams, civil judge junior division examination, Assistant prosecutors examination, central buearue of investigation public prosecutors, assistant district attorney, district prosecution officer exam, RJS,DJS, pcs j, cj, hjs, apo, ada, adpo, jm, and all other judicial services examination called with whatever name.
Practice Sets on Negotiable Instruments Act 1881 are important part of any judicial services examination. Atleast 5-10 questions from this sections were asked during the exam. tesTopper has good collection on questions based on Negotiable Instruments Act 1881 from previous year examinations and ffrom our Legal Experts Team at tesTopper.
Judicial Services aspirants can also see previous years questions papers , model papers on different subject such as Indian Penal Code, Indian Evidence Act, Indian Contract Act, Muslim law, Hindu law, Criminal Procedure Code , Negotiable Instruments Act 1881 and all central acts which come into thier competititive examination for different year such as 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022, 2023. The vacancies whenever notified by the various high court or state public service commission are also displayed on the site for user perusal so that they may fill thier examination form on time.
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What to Study in Negotiable Instruments Act 1881 for Judiciary Exams
Negotiable Instruments Act 1881 is an act in India dating from the British colonial rule, that is still in force largely unchanged. The Act was originally drafted in 1866 by the 3rd India Law Commission and introduced in December, 1867 in the Council and it was referred to a Select Committee.
Meaning and Definition
- A Negotiable Instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer.
- It must be freely transferable either by delivery (when it is payable to the bearer of the document) or by endorsement and delivery (when the document is payable to order).
- The transferee taking the instrument in good faith and for consideration gets a good title to the same even if the title of the transferor is defective.
- The party holding the instrument should be entitled to maintain a suit thereon in case the instrument gets dishonored while in his custody.
Characteristics of Negotiable Instruments
- Writing and Signed by Its Maker
- Unconditional
- Fixed Sum of Money
- Transferable
- Absolute And Good Title
- Right to Recovery
Relevant Provisions of RBI Act 1934
- A bill of exchange or hundi cannot originally be made payable to ‘bearer on demand’.
- A promissory note cannot be originally made payable to bearer.
Kinds of Negotiable Instruments
- Promissory note
- Bill of exchange
- Cheque
Important Sections of Negotiable Instruments Act:
There are total 147 sections in the Negotiable Instruments Act.
- Section 4 – Promissory note
- Section 5 – Bill of exchange
- Section 6 – Cheque
- Section 13 – Negotiable Instruments
- Section 92 – Dishonour by non-payment
- Section 118 – Presumptions as to Negotiable Instruments
Promissory Note
- An unconditional promise in writing made by one person (maker) to another person( payee)
- Signed by the maker
- Stamped
- Promise to pay
- On demand or at a fixed or determinable future time
- A sum certain in money
- Pay in terms of legal tender money only
- To, or to the order of, a specified person or to the bearer.
- The parties i.e. the maker and the payee must be certain.
Bill of Exchange
- An order in writing directing a person to pay a sum of money to a specified person.
- Duly signed by its drawer
- Accepted by its drawee
- Properly stamped
- Express order to pay
- Definite sum of money
- Definite and unconditional order
- Parties to a bill must be certain
Cheque
- A bill of exchange drawn on a specified banker, and not expressed to be payable otherwise than on demand
- Includes the electronic image of a truncated cheque
- Includes a cheque in electronic form
- issued on a specified banker only
- The amount specified is always certain, and must be clearly mentioned
- The payee is always certain.
- Must bear a date
- Types -Open cheque, Crossed cheque, Bearer cheque, Order cheque
Important Points in Negotiable Instruments Act 1881
Sections | Particulars |
Chapter I | Preliminary |
1 | Short title |
2 | Repeal of enactments |
3 | Interpretation clause |
Chapter II | Notes, Bills And Cheques |
4 | “Promissory note |
5 | “Bill of exchange” |
6 | “Cheque” |
7 | “Drawer”, “drawee” |
8 | Holder |
9 | “Holder in due course” |
10 | “Payment in due course” |
11 | “Inland instrument” |
12 | “Foreign instrument” |
13 | “Negotiable instrument” |
14 | Negotiation |
15 | Endorsement |
16 | Endorsement “in blank” and “in full”-“endorsee” |
17 | Ambiguous instruments |
18 | Where amount is stated differently in figures and words |
19 | Instruments payable on demand |
20 | Inchoate stamped instruments |
21 | At sight, On presentment, After sight |
22 | “Maturity” |
23 | Calculating maturity of bill or note payable so many months after date or sight |
24 | Calculating maturity of bill or note payable so many days after date or sight |
25 | When day of maturity is a holiday |
Chapter III | Parties To Notes, Bills And Cheques |
26 | Capacity to make, etc., promissory notes, etc. |
27 | Agency |
28 | Liability of agent signing |
29 | Liability of legal representative signing |
30 | Liability of drawer |
31 | Liability of drawee of cheque |
32 | Liability of maker of note and acceptor of bill |
33 | Only drawee can be acceptor except in need or for honor |
34 | Acceptance by several drawees not partners |
35 | Liability of endorser |
36 | Liability of prior parties to holder in due course |
37 | Maker, drawer and acceptor principals |
38 | Prior party a principal in respect of each subsequent party |
39 | Suretyship |
40 | Discharge of endorser’s liability |
41 | Acceptor bound, although endorsement forged |
42 | Acceptance of bill drawn in fictitious name |
43 | Negotiable instrument made, etc. without consideration |
44 | Partial absence or failure of money-consideration |
45 | Partial failure of consideration not consisting of money |
45A | Holder’s right to duplicate of lost bill |
Chapter IV | Negotiation |
46 | Delivery |
47 | Negotiation by delivery |
48 | Negotiation by endorsement |
49 | Conversion of endorsement in blank into endorsement in full |
50 | Effect of endorsement |
51 | Who may negotiate |
52 | Endorser who excludes his own liability or makes it conditional |
53 | Holder deriving title from holder in due course |
54 | Instrument endorsed in blank |
55 | Conversion of endorsement in blank into endorsement in full |
56 | Endorsement for part of sum due |
57 | Legal representative cannot by delivery only negotiate instrument endorsed by deceased |
58 | Instrument obtained by unlawful means or for unlawful consideration |
59 | Instrument acquired after dishonor or when overdue |
60 | Instrument negotiable till payment or satisfaction |
Chapter V | Presentment |
61 | Presentment for acceptance |
62 | Presentment of promissory note for sight |
63 | Drawee’s time for deliberation |
64 | Presentment for payment |
65 | Hours for presentment |
66 | Presentment for payment of instrument payable after date or sight |
67 | Presentment for payment of promissory note payable by installments |
68 | Presentment for payment of instrument payable at specified place and not elsewhere |
69 | Instrument payable at specified place |
70 | Presentment where no exclusive place specified |
71 | Presentment when maker, etc., has no known place of business or residence |
72 | Presentment of cheque to charge drawer |
73 | Presentment of cheque to charge any other person |
74 | Presentment of instrument payable at demand |
75 | Presentment by or to agent, representative of deceased, or assignee of insolvent |
76 | When presentment unnecessary |
77 | Liability of banker for negligently dealing with bill presented for payment |
Chapter VI | Payment And Interest |
78 | To whom payment should be made |
79 | Interest when rate specified |
80 | Interest when no rate specified |
81 | Delivery of instrument on payment or indemnity in case of loss |
Chapter VII | Discharge From Liability On Notes, Bills And Cheques |
82 | Discharge from liability |
83 | Discharge by allowing drawee more than forty-eight hours to accept |
84 | When cheque not duly presented and drawer damaged thereby |
85 | Cheque payable to order |
85A | Drafts drawn by one branch of a bank on another payable to order |
86 | Parties not consenting discharged by qualified or limited acceptance |
87 | Affect of material alteration |
88 | Acceptor or endorser bound notwithstanding previous alteration |
89 | Payment of instrument on which alteration is not apparent |
90 | Extinguishment of rights of action on bill in acceptor’s hands |
Chapter VIII | Notice Of Dishonour |
91 | Dishonor by non-acceptance |
92 | Dishonor by non-payment |
93 | By and to whom notice should be given |
94 | Mode in which notice may be given |
95 | Party receiving must transmit notice of dishonor |
96 | Agent for presentment |
97 | When party to whom notice given is dead |
98 | When, notice of dishonor is unnecessary |
Chapter IX | Noting And Protest |
99 | Noting |
100 | Protest |
101 | Contents of protest |
102 | Notice of protest |
103 | Protest for non-payment after dishonor by non-acceptance |
104 | Protest of foreign bills |
104A | When noting equivalent to protest |
Chapter X | Reasonable Time |
105 | Reasonable time |
106 | Reasonable time of giving notice of dishonor |
107 | Reasonable time for transmitting such notice |
Chapter XI | Acceptance And Payment For Honour And Reference In Case Of Need |
108 | Acceptance for honor |
109 | How acceptance for honor must be made |
110 | Acceptance not specifying for whose honor it is made |
111 | Liability of acceptor for honor |
112 | When acceptor for honor may be charged |
113 | Payment for honor |
114 | Right of payer for honor |
115 | Drawee in case of need |
116 | Acceptance and payment without protest |
Chapter XII | Compensation |
117 | Rules as to compensation |
Chapter XIII | Special Rules Of Evidence |
118 | Presumptions as to negotiable instruments Until the contrary is proved, the following presumption shall be made |
119 | Presumption on proof of protest |
120 | Estoppel against denying original validity of instrument |
121 | Estoppel against denying capacity of payee to endorse |
122 | Estoppel against denying signature or capacity of prior party |
Chapter XIV | Crossed Cheques |
123 | Cheque crossed generally |
124 | Cheque crossed specially |
125 | Crossing after issue |
126 | Payment of cheque crossed generally |
127 | Payment of cheque crossed specially more than once |
128 | Payment in due course of crossed cheque |
129 | Payment of crossed cheque out of due course |
130 | Cheque bearing not negotiable |
131 | Non-liability of banker receiving payment of cheque |
131A | Application of chapter to drafts |
Chapter XV | Bills In Sets |
132 | Set of bills |
133 | Holder of first acquired part entitled to all |
Chapter XVI | International Law |
134 | Law governing liability of maker, acceptor or endorser of foreign instrument |
135 | Law of place of payment governs dishonor |
136 | Instrument made, etc. out of India, but in accordance with the law of India |
137 | Presumption as to foreign law |
Chapter XVII | Penalties In Case Of Dishonour Of Certain Cheques For Insufficiency Of Funds In The Accounts |
138 | Dishonor of cheque for insufficiency, etc., of funds in the accounts |
Supreme Court 3762 | |
139 | Presumption in favor of holder |
140 | Defense which may not be allowed in any prosecution under section 138 |
141 | Offences by companies |
142 | Cognizance of offences |
Schedule | Enactment [Repealed] |
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Master Negotiable Instruments Act 1881, 2000+ MCQs, Questions
tesTopper provides a remarkable plateform for practicing Negotiable Instruments Act 1881 for all state judicial services examinations and public prosecutors officers examinations such as Higher judicial services, additional district judge exam, judicial magistrate exams, civil judge junior division examination, Assistant prosecutors examination, central buearue of investigation public prosecutors, assistant district attorney, district prosecution officer exam, RJS,DJS, pcs j, cj, hjs, apo, ada, adpo, jm, and all other judicial services examination called with whatever name.
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