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NEGOTIABLE INSTRUMENTS ACT, 1881

Part I - Introduction

(Part I of VI)

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THE NEGOTIABLE INSTRUMENTS ACT, 1881

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1. NEGOTIABLE INSTRUMENT (6):

1.1. Promissory Note

1.2. Essential Ingredients of a Valid Promissory Note1.3. Bill of Exchange

1.4. Essential Requirements of a Valid Bill of Exchange

1.5. Parties to a Bill of Exchange

1.6. Cheque

2. AMBIGUOUS INSTRUMENTS

3. ENDORSEMENT (4)

3.1. Persons who can Endorse3.2. Effect of endorsement

3.3. Kinds of endorsements

3.4. Liabilities of endorser

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4. PRESENTMENT (4)

4.1. Presentment for Acceptance

4.2. Presentment for Payment

4.3. Time of Presentment

4.4. Place of Presentment

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5. CROSSED CHEQUES (SECTIONS 123-130) - (8)

5.1. Crossed Cheques (Section 123)5.2. Payment of cheque cross generally (Section 126)

5.3. Cheque Crossed Specially (Section 124)

5.4. Payment of Cheque Crossed Specially (Section 126)

5.5. Payment of Cheque Crossed Specially more thanOne (Section 127)

5.6. Payment in due course of Crossed Cheque (Section128)

5.7. Payment of crossed cheques out of due course(Section 129)

5.8. Cheque bearing 'not negotiable' (Section 130)

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6. DISHONOUR OF CHEQUE, LIABILITY OF DRAWER

7. PRESUMPTIONS AS TO NEGOTIABLE INSTRUMENTS

8. NOTICE OF DISHONOUR (5)8.1. Notice must be given within reasonable time

8.2. Mode of giving Notice

8.3. When notice of dishonour is not necessary

8.4. Liability of a Company under Section 138

8.5. Cognizance of Offences under the NegotiableInstruments Act

9. EVIDENCES AND OFFENCES (3):9.1. bank's slip as evidence in court

9.2. cognizance of case for offence of dishonour of chequeunder section 147

9.3. offences under negotiable instrument act arecompoundable .

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End of Part I of VI

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We will catch you in the next lesson… 

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Negotiable Instrument Act

Part I Introduction

Part II Topics 1 to 3

Part III Topics 4 to 6

Part IV Topics 6 to 9

Part V Key Points 1Part VI Key Points 2 & Important Sections.

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1. NEGOTIABLE INSTRUMENT:

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1. NEGOTIABLE INSTRUMENT:

1.1. Promissory Note

1.2. Essential Ingredients of a Valid Promissory

Note

1.3. Bill of Exchange

1.4. Essential Requirements of a Valid Bill of

Exchange

1.5. Parties to a Bill of Exchange

1.6. Cheque

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Main Stream 9 Topics under NI ACT 

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1. NEGOTIABLE INSTRUMENT: - (6 sub-topics)

2. AMBIGUOUS INSTRUMENTS

3. ENDORSEMENT – ( 4 sub topics)

4. PRESENTMENT – (4 Sub Topics)

5. CROSSED CHEQUES (SECTIONS 123-130) - (8 Sub topics)

6. DISHONOUR OF CHEQUE, LIABILITY OF DRAWER

7. PRESUMPTIONS AS TO NEGOTIABLE INSTRUMENTS

8. NOTICE OF DISHONOUR 9 (5 Sub Topics)

9. EVIDENCES AND OFFENCES – (3 Sub Topics)

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Main Stream 9 Topics under NI ACT 

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1. NEGOTIABLE INSTRUMENT: - (6 sub-topics)

2. AMBIGUOUS INSTRUMENTS

3. ENDORSEMENT – ( 4 sub topics)

4. PRESENTMENT – (4 Sub Topics)

5. CROSSED CHEQUES (SECTIONS 123-130) - (8 Sub topics)

6. DISHONOUR OF CHEQUE, LIABILITY OF DRAWER

7. PRESUMPTIONS AS TO NEGOTIABLE INSTRUMENTS

8. NOTICE OF DISHONOUR 9 (5 Sub Topics)

9. EVIDENCES AND OFFENCES – (3 Sub Topics)

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 1. NEGOTIABLE INSTRUMENT:

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1.1. Promissory Note

1.2. Essential Ingredients of a Valid Promissory Note

1.3. Bill of Exchange

1.4. Essential Requirements of a Valid Bill of Exchange

1.5. Parties to a Bill of Exchange

1.6. Cheque

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2. AMBIGUOUS INSTRUMENTS

AMBIGUOUS INSTRUMENTS: As per the section 17Where an instrument may be construed either as a

promissory note or bill of exchange, the holder

may at his election treat it as either and theinstrument shall be thenceforward treated

accordingly..

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 3. ENDORSEMENT

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3.1. Persons who can Endorse

3.2. Effect of endorsement

3.3. Kinds of endorsements

3.4. Liabilities of endorser

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 4. PRESENTMENT

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4.1.Presentment

for

Acceptance

4.2.

Presentment

for Payment

4.3. Time of

Presentment

4.4. Place of

Presentment

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 5. CROSSED CHEQUES (SECTIONS 123-130)

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5.1. Crossed Cheques (Section 123)

5.2. Payment of cheque cross generally (Section 126)

5.3. Cheque Crossed Specially (Section 124)

5.4. Payment of Cheque Crossed Specially (Section 126)

5.5. Payment of Cheque Crossed Specially more than One (Section 127)

5.6. Payment in due course of Crossed Cheque (Section 128)

5.7. Payment of crossed cheques out of due course (Section 129)

5.8. Cheque bearing 'not negotiable' (Section 130)

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DISHONOUR OF CHEQUE

Section 138 of the Negotiable Instruments Act as

amended by Act 55 of 2002 w.e.f. 6 February, 2003

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7.0. PRESUMPTIONS AS TO NEGOTIABLE INSTRUMENTS: 

Sections 118 and 119 lays down certainpresumptions as to negotiable instruments. There

are 8 notable presumptions are nested under this

topic

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 8. NOTICE OF DISHONOUR

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 9. EVIDENCES AND OFFENCES

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9.1. bank's slip as evidence in court

9.2. cognizance of case for offence

of dishonour of cheque undersection 147

9.3. offences under negotiable

instrument act are compoundable

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Explanation in Three Parts

PART I1. Negotiable instrument:

2. Ambiguous instruments

3. Endorsement

PART II

4. Presentment

5. Crossed cheques (sections 123-130)

6. Dishonour of cheque, liability of drawer

Part III

7. Presumptions as to negotiable instruments

8. Notice of dishonour

9. Evidences and offences

C i h @ R Ed C P d f A d i P l