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c. 0ther Laws > The Negotiable Instruments Act, 1881 > Flashcards

The Negotiable Instruments Act, 1881 Flashcards

(59 cards)

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1
Q

138

A

Dishonor of cheque for insufficiency, etc. Of funds in the account.

Where any cheque drawn by a person on an account maintained by him with a banker’s payment is dishonored due to insufficiency of funds, he shall be punished with imprisonment for a term which may extend to two years or with fine which may extend to twice the amount of cheque or with both

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2
Q

139

A

Presumption in favor of holder

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3
Q

141

A

In case where a company committed an offense u/s 138, not only the company but also every person who at the time when the offense was committed, was in charge of and was responsible to the company shall be deemed to be guilty and was liable

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4
Q

142(c)

A

Right of the court.

The payee has only one opportunity to file a complaint for its dishonor

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5
Q

143

A

Power of the court for trial
- trial of offense
- speedy trial
- speedy and efficient disposal

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6
Q

11

A

Inland instrument

Drawn in India, payable in India

Or

Draw on person resident in india

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7
Q

12

A

Foreign instrument

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8
Q

13

A

Bearer instrument

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9
Q

17

A

Ambiguous instrument

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10
Q

42

A

Fictitious instrument

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11
Q

19

A

Demand instrument

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12
Q

21

A

Time instrument

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13
Q

22

A

Maturity of Bill & grace days

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14
Q

23

A

Period of termination ( due )

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15
Q

24

A

Time determined excluding the day from which the time begins to run

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16
Q

25

A

If last day of grace falls on a public holiday due is the next preceeding business day

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17
Q

9

A

Holder in due course

Means any person who for consideration becomes the possessor of a negotiable instrument

if payable to bearer or payee or indorsee thereof,

if payable to order, before the amount in it became payable and

without having sufficient cause to believe that any defect existed in the title of the person from whom he derived his title.

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18
Q

20

A

An inchoate instrument is an incomplete instrument in some respect

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19
Q

120

A

No drawer of a bill, shall in a suit thereon, by a holder in due course, be permitted to deny the validity of the instrument as originally drawn

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20
Q

58

A

When an instrument is obtained by fraud / offence/ for unlawful consideration, possessor/ endorsee cannot receive the amount of instrument if he is not a holder in due course

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21
Q

36

A

The liabilities of prior parties to the holder in due course. This section says that a holder in due course has a privilege to held every prior party to a Negotiable instrument liable on it until the instrument is duly satisfied

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22
Q

53

A

A holder who derives title from holder in due course has all rights of a holder in due course. Provided the holder was himself not a party to the fraud/ illegality which affected the instrument in some stage of its journey

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23
Q

40

A

Where the holder of Negotiable instrument, without the consent of the endorser, destroys/ impairs the endorsers remedy against the prior party , the endorser is discharged from liability to the holder same extent as if the instrument has been paid at maturity

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24
Q

42

Study These Flashcards
A

In case a bill of exchange is made payable to the drawers orders in fictitious name and is endorsed by the same hand as the drawers signature, it is not permissible for the acceptor to allege as against the holder in due course that such name is fictitious

25
78
Discharge by payment
26
82
Discharge by cancellation
27
83
Holder allowing more than 48 hrs to accept the bill
28
84
Drawer not duly presenting a cheque for payment
29
86
Holder agreeing to qualified or limited acceptance of bill. Acceptance must be general acceptance and therefore, the holder is at liberty to refuse to take a qualified acceptance. Where, he refused to take it , the bill shall be dishonored by non acceptance. But if he accepts the qualified acceptance, even then it binds only him and the acceptor and not other parties who do not consent thereto
30
87
Discharge by material attention
31
90
Bill coming to acceptors hand after maturity
32
84(3)
Cheque not presented by holder for payment within reasonable time of its issue and drawer suffers actual damage through the delay because of the failure of the bank, he is discharged from liability to the extent of such damage
33
49
Conversion of a blank endorsement into an endorsement in full
34
125
Crossing of cheque
35
89
Apparent alteration
36
91
Dishonor by non acceptance
37
92
Dishonor by non payment- party primarily liable making default in payment
38
76
Dishonor for non payment- when presentment for payment excused and when overdue, remains unpaid
39
87
Any material alteration of Negotiable instrument renders the same void as against anyone who is partly there to at the time of making such alteration and doesn't consent thereto. However, an alteration made in order to carry out the common intention of the original parties doesnot affect the validity of the instrument and the parties remain liable.
40
93
Notice of dishonor must be given by the holder to all parties other than the maker/ acceptor/ drawer whom the holder seeks to make liable
41
94
If the notice is duly directed and sent by post and miscarries, such miscarriage doesnot render the notice invalid
42
98
Exceptions for giving notice of dishonor
43
13
A bearer instrument which can change hands by mere delivery of the instrument. It should be expressed to be so payable or on which the last endorsement is blank
44
15
When the maker/holder of Negotiable instrument signs the same, otherwise than as such maker, for the purpose of negotiation, on the back or face therefore or on a slip of paper annexed thereto, or so signs for the same purpose a stamped paper intended to be completed as Negotiable instrument, he is said to endorse the same and is called the endorser
45
16
Blank indorsement Indorsor just puts his signature without specifying the name of indorsee . Indorsement is full, signature of indorser and name of endorsee specified
46
54
Sec 16 renders payable to the bearer eventhough originally payable to order
47
48
The purpose of an instrument gets fulfilled by its delivery
48
47,58
A promissory note , Bill of exchange/ cheque payable to bearer is negotiable by delivery thereof
49
46
The instrument payable to bearer is transferable merely by delivery I.e. without any further endorsement thereon.
50
52
Sans recourse & if the endorser Excludes his liability and afterwards becomes the holder of the instrument, all intermediate endorsers are liable to him, further negotiation is not prohibited
51
55
If an endorsement in blank is followed by an endorsement in full, the instrument still remains payable to bearer and negotiable by delivery as against all parties prior to the endorsement in full, though the endorser in full is only liable to a holder who made title directly through his endorsement and the person deriving title through such holder
52
56
Partial endorsement is invalid under law and invalid for negotiation
53
130
A person taking a cheque crossed 'not negotiable' can't get a better title than the transferor. If title of transferor is defective, so will be the transferee's
54
128 & 130
Both collection and paying bankers will be protected under this act, provided the payment & collection made in good faith and without negligence
55
85
Drawee banker discharged as soon as payment in due course was made
56
85(2)
The original character of the cheque is not altered so far as the paying bank is concerned, provided the payment is made in due course
57
47
If a negotiable instrument is delivered to a person ,upon condition I.e. it will be effective on the happening of a certain event , such negotiable instrument cannot be further negotiated unless such event happens. However, if it is transferred to a holder in due course, his rights will not be affected by such condition
58
59
The holder of a negotiable instrument who has acquired it after dishonor whether by non acceptance or non payment with notice thereof, or after maturity, has only, as against other parties, the rights thereon of his transferor
59
85
The banker cannot be held liable for forged endorse if they make payment in good faith & without negligence but the banker will not be protected where the payment of a cheque is made on which the drawers signature is forged

c. 0ther Laws (2 decks)

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