As between E and B, B is the principal debtor, and A, C and D are his sureties. I promise to pay B rs. Namjog Hundi: A hundi payable to a specified person named in the hundi is known as Namjog Hundi. It will be for the accused to prove the contrary. Payment of cheque crossed generally Payment of cheque crossed specially 127. In such circumestences the N.
A notice of dishonour is required. All the three parties-drawer, drawee and payee must be mentioned. The bill not having been paid at maturity, the drawer sold the goods and retained the proceeds, but endorsed the bill to A. It is confirmed from the bank that the account no. Section 13 - Negotiable Instruments 1 Negotiable instrument. Article shared by : This article throws light upon the top seven credit instruments of a bank.
Dishonour: If this bill is dishonoured, payment can be taken with the help of court. Liability of accommodation party and position of accommodation party 39. Partial absence or failure of money-consideration 45. Most negotiable instruments fall under the following two categories; the Negotiable instrument by statute and Negotiable instruments by custom or usages. Explanation - For the purposes of this section, debt or other liability means a legally enforceable debt or other liability. Advent of cheques in the market have given a new dimension to the commercial and corporate world, its time when people have preferred to carry and execute a small piece of paper called Cheque than carrying the currency worth the value of cheque, which makes the study of this section very important. The presentation of cheque should be within its validity period.
What constitutes valid presentment and mode of presentment 72. Jurisdiction: Territorial jurisdiction - Dishonour of cheque - Complaint can be filed at any of the place: - 1. Negotiable instruments by custom or usages are mainly, the government promissory notes, delivery orders, and railway receipts have been held to be negotiable by usage or custom of the trade. Where drawer of cheque failed to make payment within 15 days of receipt of notice. They may be crossed like a cheque. Time and again this Act has been amended in order to make necessary and relevant changes in accordance with the changing circumstances as well as to curb the misuse of litigation process.
Acceptance: A cheque is not present them for acceptance even required to be presented for when it is not essential to do so. He may, therefore, without taking pre-emptory action in exercise of his right under clause b of Section 138, go on presenting the cheque so as to enable him to exercise such right at any point of time during the validity of the cheque. A bill drawn without any consideration is known as Accommodation Bill. For general crossing two transverse lines on the face of cheque are essential. The date of loan and issuanceof cheque is a fictuous date and the transaction was not real. Comment: As the signature in the cheque is admitted to be that of the accused, the presumption envisaged in Section 118 of the Act can legally be inferred that the cheque was made or drawn for consideration on the date which the cheque bears.
The delay condonation period with respect to paying this interim compensation amount is yet another 30 days, which depends upon the discretion of the Court. Where the drawee is incompetent to contract, or the acceptance is qualified the bill may be treated as dishonored. The person receiving the money has to send a Jawab answer to the remitter showing that he has received the money. Helps in Enhancing Business: Those persons who are not in a position to run their business due to scarcity of funds, can run their business by obtaining credit through bills or by discounting the bills from bank. The drawer in payment of a legal liability to discharge the existing debt should have drawn cheque.
It will be for the accused to prove the contrary. Of course on dishonour of cheques there is a civil liability accrued. Holder of an instrument is a person who holds the instrument a. Endorsement of a Cheque: Endorsement means signing at the back of instrument for the purpose of negotiation. Crossing after issue 125A Crossing a material part of a cheque 126. Every endorser after dishonor is liable as upon an instrument payable on demand.
For example, if a cheque is payable to Ram Lai or order and Ram Lai endorses the cheque by simply putting his signature, it is a general or blank endorsement, as: 2. It should always be in writing. Partial Endorsement: A partial endorsement is one where the endorsement is made for a part of the amount of instrument. It is a promise by debtor to pay. This is because of delay tactics of unscrupulous drawers of dishonoured cheques due to easy filing of appeals and obtaining stay on proceedings.
Explanation 3 : Where a promissory note, bill of exchange or cheque, either originally or by endorsement, is expressed to be payable to the order of a specified person, and not to him or his order, it is nevertheless payable to him or his order at his option. Such bill must be accompanied by the instrument dishonored and the protest thereof if any. Darshani Hundi: A darshani hundi is one which is payable at sight or on demand. Liability of agent signing 28A. Application of Chapter to drafts 131B. Firmanjog Hundi: A firmanjog hundi is one which is payable to order.
Instruments payable on demand A promissory note or bill of exchange, in which no time for payment is specified, and a cheque, are payable on demand. It must be for the entire negotiation instrument. Liability of prior parties to holder in due course 37. Where amount is stated differently in figures and words: If the amount undertaken or ordered to be paid is stated differently in figures and in words, the amount stated in words shall be the amount undertaken or ordered to be paid. Protest of foreign bills 104A. Any lapse in adhering to the schedule, shall take away a cause of action under Sec. Law governing liability of parties to a foreign instrument 135.