PROFESSIONAL’S™

BARE ACT

With Short Comments

Price ` 110.00

PROFESSIONAL BOOK PUBLISHERS

The Negotiable Instruments Act, 1881 (26 of 1881) as amended by

The Negotiable Instruments (Amendment) Act, 2018 (20 of 2018) (w.e.f. 1-9-2018) alongwith

H Explanatory Notes on Dishonour of Cheques H Model Forms of Notice under Section 138 H RBI Circular Regarding Dishonour of Cheque for Scheduled Banks H Form of Complaint (to be Lodged) with the Banking Ombudsman H Address of the Office of Banking Ombudsman alongwith Area of Operation

PROFESSIONAL BOOK PUBLISHERS DELHI

WITH THE BLESSINGS OF “MATA VAISHNO DEVI” Published by PROFESSIONAL BOOK PUBLISHERS 3520/2, Chotani Manzil, Nicholson Road, Mori Gate, Delhi - 110 006 Phone: 011-40195701, 09313881451, 09868914519 E-Mail: [email protected], [email protected] Website: http://www.bareactsonline.com, www.professionalbooks.in

© Reserved Typesetting at Professional Book Publishers (Computer Division), Delhi Printed at Shree Rameshwar Printers, New Delhi Although every care has been taken in the publication of this book, the authors, the publishers, the distributors and the printers shall not be responsible for any loss or damage caused to any person on account of errors or omissions which might have crept in. It is suggested that to avoid any doubt the reader should cross-check all the facts, law and contents of the publication with the original Government publication or notification, etc. No part of this book may be reproduced or copied in any form or any manner whatsoever without the prior written permission of the publishers. For binding mistake, misprints or for missing pages, etc., the publisher’s liability is limited to replacement within thirty days of purchase by similar edition. All expenses in this connection are to be borne by the purchaser. All disputes are subject to Delhi jurisdiction only.

CONTENTS

THE NEGOTIABLE INSTRUMENTS ACT, 1881 Section Preamble

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CHAPTER I PRELIMINARY 1. Short title Local extent Saving of usages relating to hundis, etc. Commencement 2. [Repealed] 3. Interpretation clause “Banker” CHAPTER II OF NOTES, BILLS AND CHEQUES 4. 5. 6. 7.

8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21.

22. 23. 24. 25.

“Promissory note” “Bill of exchange” “Cheque” “Drawer”, “Drawee” “Drawee in case of need” “Acceptor” “Acceptor for honour” “Payee” “Holder” “Holder in due course” “Payment in due course” “Inland instrument” “Foreign instrument” “Negotiable instrument” Negotiation Indorsement Indorsement “in blank” and “in full” “Indorsee” Ambiguous instruments Where amount is stated differently in figures and words Instruments payable on demand Inchoate stamped instruments “At sight” “On presentment” “After sight” “Maturity” Days of grace Calculating maturity of bill or note payable so many months after date or sight Calculating maturity of bill or note payable so many days after date or sight When day of maturity is a holiday