Which section of the Negotiable Instruments Act deals with cheque?
Section 13
Section 13 of the Negotiable Instruments Act states that a negotiable instrument is a promissory note, bill of exchange or a cheque payable either to order or to bearer.
What is bearer cheque under Negotiable Instrument Act 1881?
A cheque which is payable to a person whosoever bears, is called bearer cheque. The cheque sometimes can be made payable to “Cash” or bearer or made payable to a specific name, for example, “bujji sekhar or Bearer”. A Bearer cheque can be negotiated or pass to another person by mere delivery.
What is cheque according to Negotiable Instruments Act?
Central Government Act. Section 6 in The Negotiable Instruments Act, 1881. 1 [ 6 “Cheque”. — A “cheque” is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand and it includes the electronic image of a truncated cheque and a cheque in the electronic form.
Is cheque a negotiable instrument?
A cheque is a Negotiable Instrument, which can be further negotiated by means of endorsement and is payable on demand. A cheque payable to bearer is negotiable by the delivery thereof, and when it is payable to order is negotiable by the holder by endorsement and delivery thereof.
How can I get bail in section 138?
Section 138 of Negotiable Instruments Act, 1881 provides that where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank …
What is Section 138c?
Section 138 provides that when the cheque is dishonored for insufficiency of funds or for any of the prescribed reasons, the one who is at defaulter can be punished with imprisonment for a term which may extend to two years, or with fine which may extend to twice the amount of the cheque, or both.
What are the main features of negotiable instrument Act 1881?
Features of Negotiable Instruments
- Easily Transferable: A negotiable instrument is easily and freely transferable.
- Must be in Writing: All negotiable instruments must be in writing.
- Time of Payment must be Certain: If the order is to pay when convenient then such an order is not a negotiable instrument.
What are the types of cheque according to negotiable instrument act?
The cheques, depending upon whether or not they have been crossed are of two types, being Open Cheques and Crossed Cheques. An Open Cheque is a cheque which can be presented directly to the bank for payment over the counter of the bank.
What are the 3 parties of cheque?
Parties to regular cheques generally include a drawer, the depositor writing a cheque; a drawee, the financial institution where the cheque can be presented for payment; and a payee, the entity to whom the drawer issues the cheque.
What are the four types of negotiable instruments?
There are many types of negotiable instruments. The common ones include personal checks, traveler’s checks, promissory notes, certificates of deposit, and money orders.
How many types of cheque are there?
8 Different Types of Cheques Used in Organizations and Banking. A cheque is an official instrument or a document that orders a bank to pay a certain amount of money, which is mentioned on the cheque to the payee, whose name is also mentioned on the cheque, from the bank account of the payer who issues the cheque.
What did the Negotiable Instrument Act 1881 mean?
Negotiable Instrument Act, 1881 MCQs A negotiable instrument means a Promissory note, Bill of exchange, Cheque payable either to order or to bearer.
Who is authorized to cross a cheque under negotiable instrument act?
Kabir Jaiswal is a student of National University of Study and Research in Law, Ranchi (NUSRL) who writes about crossing cheque under the Negotiable Instrument Act. What is Crossing of Cheques? Why Cross a Cheque? Who is authorized to Cross a Cheque? General Crossing v. Special Crossing
Is the account payee mentioned in the Negotiable Instrument Act?
Although the words ‘ account payee’ is not mentioned in the Negotiable Instrument Act, they are still considered to be part of the law because of their widespread practice and use. It has often been observed that both non- negotiable crossing and crossing of accounts payee help to ensure that cheques are extremely secure.
What does section 130 of the Negotiable Instrument Act say?
Section 130 of the Negotiable Instrument Act which deals with Non-Negotiable crossing states that “a person taking a cheque crossed generally or especially, bearing in either case the words ‘not negotiable’ shall not have and shall not be capable of giving a better title to the cheque than that which person from whom he took it had.”
