THE NEGOTIABLE INSTRUMENT ACT, 1881

 An act to define and amend the law relating to Promissory Notes, Bills of Exchange and Cheques.

 In 1866 the Indian Law Commission drafted the Negotiable Instrument Bill, which was introduced in the Council in December,1867. The Bill was referred to a select Committee. Objection was raised by the mercantile community to numerous deviations from the English law which it contained. The Bill had to be re-drafted in 1877. After a lapse of sufficient period for criticism by the Local Governments, the High Courts and chambers of commerce, the bill was revised by the select Committee. In spite of this the Bill had to be referred to a new law commission. On the recommendation of the new law Commission and the Bill was re-drafted and again it was sent to a selected committee which adopted most of the addition recommended by the new Law Commission. The draft thus prepared for the fourth time was introduced in the Council.

The Negotiable Instrument Bill having passed by the Council received its assent on 9^th December,1881. It came into force on the 1^st day of March,1882 as THE NEGOTIABLE INSTRUMENT ACT,1881.

 QUESTIONS: -

WHAT IS PROMISSIORY NOTES?

WHAT IS BILL OF EXCHANGE?

WHAT IS CHEQUE?

WHAT IS DRAWER AND DRAWEE?

WHAT IS HOLDER IN DUE COURSE (SECTION 9)?

WHAT IS PAYMENT IN DUE COURSE (SECTION 10)?