Last week the union cabinet, chaired by the prime minister shri narendra modi, had given its. The negotiable instrument act, 1881 legislative department. New delhi, the 15th june, 2015 jyaistha 25, 1937 the negotiable instruments amendment ordinance, 2015 no. When the british entered india, the commercial activities increased to a larger extent. Now, after a gap of about 2 weeks, the government of india has again approved promulgation of negotiable instruments amendment ordinance, 2015. Negotiable instruments amendment ordinance, 2015, was promulgated by the president of india on june 15 2015. The president had promulgated the ordinance twice in june and september last year. Meaning, types and legal aspects by meherpuja mathur meaning of negotiable. The objective of the ordinance is to amend the provisions of negotiable instruments act, 1881, for speedy disposal of cases relating to dishonour of cheques.
Where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out. Negotiable instruments act, 1881ni act, a negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer. President has promulgated negotiable instruments amendment. Be it enacted by parliament in the sixtyninth year of the republic of india as follows. Section of the negotiable instruments act states that a negotiable instrument is a promissory note, bill of exchange or a cheque payable either to order or to bearer. Negotiable instruments the law relating to cheques the cheque is the most popular and common negotiable instrument known today. The demand for money increased to a large extent, and the growing demand could be met by mere supply of coins, and the instrument of credit took the function of money which they represented. A in case of a cheque delivered for collection through an account. President of india has promulgated negotiable instruments amendment ordinance, 2015 6 of 2015.
The apex court in this case held that the law merchant must be treated as negotiable instruments as instruments. A negotiable instrument is any transferable document which satisfies certain conditions. Commencement it extends to the whole of bangladesh. Mcqs on negotiable instruments act with answers speak hr. Sep 23, 2015 on 22 september 2015, the president of india has promulgated a new ordinance, namely, the negotiable instruments amendment second ordinance, 2015, which shall be deemed to have come into existence with effect from 15 june 2015, i. Jul 27, 2015 the negotiable instruments amendment bill, 2015 was introduced in the lok sabha, on july 27, 2015 by the minister of finance, mr. Sep 17, 2015 the union cabinet, chaired by the prime minister shri narendra modi, has given its approval for the proposal to promulgate the negotiable instruments amendment ordinance, 2015.
The negotiable instruments amendment ordinance, 2015. The act will replace negotiable instrument amendment ordinance which was repromulgated on 25 th september 2015. The amendments to the negotiable instruments act, 1881 the ni act are focused on clarifying the jurisdiction related issues for filing cases for offence committed us 8 of the ni act. Discuss the key benefits of this ordinance necessitating its passage.
Sep 16, 2015 i had mentioned in detail the consequences of lapsing of negotiable instruments amendment ordinance 2015 which led to uncertainty of territorial jurisdiction in cheque bounce cases. Negotiable instruments amendment act, 2015 to amend ni act. Negotiable instruments amendment second ordinance issued on. The union cabinet, chaired by the prime minister shri narendra modi, has given its approval for the proposal to promulgate the negotiable instruments amendment ordinance, 2015. Whereas it is expedient to define and amend the law relating to, promissory notes, bills of exchange and cheques.
Jun 17, 2015 president of india has promulgated negotiable instruments amendment ordinance, 2015 6 of 2015. The bill replaces the negotiable instruments amendment ordinance, 2015. Ordinance, 2015 and negotiable instruments amendment second ordinance, 2015. The bill seeks to amend the negotiable instruments act, 1881. Ni act, a negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer. Insertion of new section sia after section 81 of the principal act, the following section shall be inserted, namely. Updating and uploading of all central acts available on this web page is the proprietary of the legislative department in the ministry of law and justice. Negotiable instruments the law relating to cheques. These instruments pass freely from hand to hand and thus form an integral form part this modern businesses instruments. President assents negotiable instruments amendment.
Negotiable instruments by statue the act mentions only three types of negotiable instruments section. Last week union cabinet had approved to promulgate the negotiable instruments amendment ordinance 2015 which redefined the jurisdiction clause in the negotiable instrument act. Negotiable instruments amendment ordinance, 2015 6 of 2015 on 15th june 2015. Aug 31, 2016 the provisions of the negotiable instruments amendment act, 2015 shall be deemed to have come into force on the 15th day of june, 2015. I had mentioned in detail the consequences of lapsing of negotiable instruments amendment ordinance 2015 which led to uncertainty of territorial jurisdiction in cheque bounce cases. An ordinance further to amend the negotiable instruments act, 1881. Section 8 negotiable instruments act, 1881 an in depth. Benefits of negotiable instruments amendment ordinance 2015. New delhi, the 15 th june, 2015 jyaistha 25, 1937 saka the negotiable instruments amendment ordinance, 2015 no. It extends to the whole of india but nothing herein contained affects the indian paper currency act, 1871, 3 of 1871. Bill further to amend the negotiable instruments act, 1881. Whether handwritten notice would constitute a valid notice under the provisions of section 8 of the negotiable instruments act, 1881.
Definition and essentials of a cheque a cheque is a bill of excahge drawn on a banker payable on demand section 73 bills of exchange ordinance. A negotiable instrument means a promissory note bill of exchange or cheque payable either to order or to bearer only the above instruments are governed by ni act. Section 4 of the negotiable instruments amendment second ordinance, 2015 ordinance inserts section 142a in the negotiable instruments act, 1881 the act which provides for retrospective application of section 142. Be it enacted by parliament in the sixtyninth year of the republic of india as. The negotiable instruments amendment ordinance, 2015 on. The objective of the ordinance is to amend the provisions of negotiable instruments act, 1881, for speedy disposal of cases relating to dishonour of cheque. Instruments act, 1881, for at the most, section of the negotiable instruments act, 1881 states that, a negotiable instrument means a promissory note, bill of exchange or cheque payable either. Cabinet approves new negotiable instruments amendment. President has promulgated negotiable instruments amendment ordinance, 2015.
President assents negotiable instruments amendment ordinance, 2015 by chambers in cheque bounce us 8 the payee or holder of a cheque can file case, under section 8 of n. Whereas the negotiable instruments amendment bill, 2015 had been passed. It does not however specify the jurisdiction of courts where cheque bouncing cases may be filed. Be it enacted by parliament in the sixtysixth year of the republic of india as follows.
A bill further to amend the negotiable instruments act, 1881. Negotiable instruments amendment bill, 2017 a aims to amend the negotiable instruments act, 1881, asking the drawer of a cheque that has been dishonoured to pay interim compensation to the complainant. The word negotiable has a technical meaning whereby rights in an instrument can be transferred by one person to another. Whether demand of interest along with the cheque amount in the statutory notice under section 8 of the negotiable instruments act, 1881 would make the statutory notice faulty. The income tax department never asks for your pin numbers, passwords or similar access information for credit cards, banks or other financial accounts through email the income tax department appeals to taxpayers not to respond to such emails and not to share information relating to their credit card, bank and other financial accounts. Negotiable instruments recognized by negotiable instruments act 1881 are. A cheque was issued by inderpal singh respondent in favour of ms. The ordinance provides for determination of territorial jurisdiction of courts for trying cases relating to offence of dishonour of cheques under section 8 of the negotiable instruments act, 1881 ni act. Negotiable instrument amendment act 2015 comes in to force.
Avtar singh has presented the book in very simple, lucid and straight forward manner. Amendment ordinance, 2015, shall be deemed to have been transferred. Jan, 2016 the negotiable instruments act ordinance, 2015 is passed by the president on immediate basis whereas it has been passed by the lok sabha and is pending in the rajya sabha as the parliament is not yet in session. The basic reason as to why this amendment is brought in is to resolveclarify the jurisdiction issues. Negotiable instruments all negotiable instruments are governed by the provisions of our bills of exchange ordinance of 1927. The negotiable instrument act was originally drafted in 1866 by the 3rd indian law. Negotiable instruments amendment act, 2015 to amend ni. The president of india has promulgated the negotiable instruments amendment ordinance, 2015 6 of 2015 on 15 th june 2015. Effect of recent amendments in negotiable instruments act on the. The ordinance will be deemed to have been in force from june 15, 2015.
The president of india has promulgated the negotiable instruments amendment ordinance, 2015 no. Ministry of law and justice legislative department new delhi, the 15th june, 2015jyaistha 25, 1937 the negotiable instruments amendment ordinance, 2015 no. The cabinet on wednesday decided to bring in an ordinance to amend the negotiable instruments act, which provides for filing of cheque bounce cases in place where the cheque was issued a move. Oct 26, 2015 recently, an ordinance has been enacted, the negotiable instruments amendment ordinance, 2015 hereinafter referred to as the ordinance inter aliado away with the confusion on jurisdiction, wherein an amendment has been made to section 142 of the ni act, 1881. The word negotiable means transferable by delivery, and the word instrument means a written document by which a right is created in favour of some person. Government notifies new negotiable instruments act amendment bill. Whereas the negotiable instruments amendment bill, 2015 has been. The negotiable instruments amendment second ordinance, 2015. The negotiable instruments amendment bill, 2015 has been passed by the lok sabha, however it is still pending in the rajya sabha.
An act to define and amend the law relating to promissory notes, bills of exchange and cheques. Approval to promulgate the negotiable instruments amendment. The updating and uploading of rules, regulations, notifications, etc. Dec 30, 2015 lok sabha had passed the bill in august 2015. Dec 29, 2015 an act further to amend the negotiable instruments act, 1881. An ordinance further to amend the negotiable act, 1881. Negotiable instrument amendment act 2015 comes in to. The act defines promissory notes, cheques and specifies penalties for bouncing of cheques, and other violations.
On 22 september 2015, the president of india has promulgated a new ordinance, namely, the negotiable instruments amendment second ordinance, 2015, which shall be deemed to have come into existence with effect from 15 june 2015, i. Thus, a negotiable instrument is a document by which rights vested in a person can be transferred to another person in accordance with the provisions of the negotiable instruments act, 1881. It also has to be noted that in our country, the law relating to negotiable instruments, is governed by the negotiable instruments act 1881. According to negotiable instruments amendment ordinance, 2015, section 142 has. The proposed amendments to the negotiable instruments act, 1881 the n. The ordinance amends the negotiable instruments act, 1881.
The negotiable instrument act has been properly dealt with. Negotiable instruments amendment second ordinance issued. Promulgated by the president in the sixtysixth year of the republic of india. Unless the subject or context otherwise requires, in this. Here you can find the mcqs on negotiable instruments act with answers. Negotiable instruments act amendmentsection 8 jurisdiction. This ordinance is a verbatim reproduction of the english bills of exchange act of 1882 which is globally regarded as one of the best drafted statutes. The negotiable instruments amendment bill, 2015 prsindia. Proposed amendments to negotiable instruments, 1881 has focused on clarification of jurisdiction pertaining to issues for filing cases for offences committed under s8 of the ni act clarification of jurisdictional issues is ideal from the equity viewpoint. Every negotiable instrument shall be governed by the provisions of this act, and no usage or custom at variance with any such provision shall apply to any such instrument. Negotiable instruments amendment second ordinance, 2015 and the negotiable instruments amendment act, 2015. A perusal of the text of the ordinance clarifies the impetus for such promulgation and the urgency thereof. Free pdf download banking and negotiable instrument act table of contents.
A cheque bouncing case can be filed only in the court at the place where the bank in which the payee has account is located. An ordinance to amend the negotiable instruments act, 1881 ni act has been promulgated by the president of india on june 15, 2015. This act may be called the negotiable instruments act, 1881. Seeking to set out clarity on the points of law on relevant territorial jurisdiction for filing a complaint under section 8 various decisions of the courts are set out, finally concluding with the latest development in law, the negotiable instruments amendment ordinance, 2015. The amendments to the negotiable instruments act, 1881 the ni act are focused on clarifying the jurisdiction. What is negotiable instruments act 1881 and important sections. In view of the urgency to create a suitable legal framework for determination of the place of jurisdiction for trying cases of dishonour of cheques under section 8 of the ni act, the government has decided to amend the law through the negotiable instruments amendment ordinance, 2015. Whereas it is expedient to define and amend the law relating to promissory notes, bills of exchange and cheques. Whereas the negotiable instruments amendment bill, 2015 has been passed by the. Act, in the jurisdictional court where the branch of bank is situated and in which the cheque was presented for clearence w. This multiple questions on negotiable instruments act 1881 can be considered for mcqs on business law or mcqs on legal aspect of business for mba, bba, b. Dealing with the nature of sections 142 and 142a of the negotiable instrument act, 1881, the court held that section 1422a, amended through the negotiable instruments amendment second ordinance, 2015, vests jurisdiction for initiating proceedings for the offence under section 8 of the negotiable instruments act, inter alia in the territorial jurisdiction of. The law relating to negotiable instruments is contained in the negotiable instruments act, 1881 which applies and extends to the whole of india. Comment on the negotiable instruments amendment ordinance.
The negotiable instruments amendment second ordinance, 2015 was promulgated on september 22, 2015. According to negotiable instruments amendment ordinance, 2015, section 142 has been amended. The negotiable instruments act, 1881 xxvi of 1881 9th december, 1881 an act to define and amend the law relating to promissory notes, bills of exchange and cheques. The negotiable instruments amendment act, 2015 is focused on clarifying the jurisdiction related issues for filing cases for offence committed under section 8 of the negotiable instruments act, 1881. Negotiable instrument amendment second ordinance 2015. Proposal to promulgate the negotiable instruments amendment.
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