• Fri. Jun 9th, 2023

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Notes – Corporate Law ( Commercial Law)- Negotiable Instruments Act, 1881 An Introduction

Prepared by Assist. Professor Rekha Khandelwal

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Corporate Law ( Commerial Law)- Negotiable Instruments Act, 1881 An Introduction

Negotiable Instruments Act, 1881 is a law related to all negotiable instruments like promissory notes, bills of exchange and cheques. The word “negotiable instrument” means a document which is transferable from one person to another.

The Object of the Act is to define and amend the  law relating to “ Promisory Note”, “Bill of exchange” or “ Cheque”

Negotiable Instruments Act was enacted on 9th December, 1881.

According to Section – 1. It came into force on 15th March, 1882.The Act is known the name of the Negotiable Instruments Act, 1881.It extends to whole of India.  

There are 17 Chapters and 148 Sections in the Negotiable Instruments Act, 1881.

Flow Chart of the Negotiable Instruments Act, 1881.

Chapter No.Chapter NameSections
IPreliminarySections 1- 3
IIOf Notes, Bills And Cheques4 – 25
IIIParties To Notes, Bills And Cheques26 – 45A
Of Negotiation  
46 – 60
Of Presentment  
61 – 77
VIOf Payment And Interest78 – 81
VIIOf Discharge From Liability On Notes, Bills And Cheques82 – 90
VIIIOf Notice Of Dishonour91 – 98
IXOf Noting And Protest99 – 104A
XOf Reasonable Time105 – 107
XIOf Acceptance And Payment For Honour And Reference In Case Of Need108 – 116
XIIOf Compensation117
XIIISpecial Rules Of Evidence118 – 122
XIVOf Crossed Cheques123 – 131A
XVOf Bills In Sets132 – 133
XVIOf International Law134 – 137
XVIIOf Penalties In Case Of Dishonour Of Certain Cheques For Insufficiency Of Funds In The Accounts138 – 148