Institute of Institute of management studiesmanagement studies

D.A.V.V.D.A.V.V.Presentation onPresentation on

Negotiable Instrument Act 1881Negotiable Instrument Act 1881

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Indian Penal Code 1860Indian Penal Code 1860

Submitted By:

Aakash kayatVikky khedeYogesh chouhan

Submitted To:

Nisha Siddiqui

IntroductionIntroduction

The law relating to negotiable The law relating to negotiable instruments is contained in the instruments is contained in the Negotiable Instruments Act, Negotiable Instruments Act, 1881 which applies and extends 1881 which applies and extends to the whole of India.to the whole of India.

Types of Negotiable InstrumentsTypes of Negotiable Instruments

Negotiable instruments are as follows:Negotiable instruments are as follows:

Bills of exchange, Bills of exchange, Cheque and promissory notes,Cheque and promissory notes,Bank notes, Bank notes, Exchequer bills, Exchequer bills, Share warrants,Share warrants,Bearer debentures, Bearer debentures, Dividend warrants, Dividend warrants, Share certificate.Share certificate.

Promissory NotePromissory Note

DefinitionDefinition::

According to Section 4, “According to Section 4, “A promissory A promissory note is an instrument in writing note is an instrument in writing (not being a bank-note or a (not being a bank-note or a currency-note) containing an currency-note) containing an unconditional undertaking, signed unconditional undertaking, signed by the maker, to pay a certain sum by the maker, to pay a certain sum of money only to, or to the order of, of money only to, or to the order of, a certain person, or to the bearer a certain person, or to the bearer of the instrument.” of the instrument.”

Specimen of a Promissory NoteSpecimen of a Promissory Note

Bill of ExchangeBill of Exchange Definition:Definition:

Section 5 of the Negotiable Instruments Act defines a Section 5 of the Negotiable Instruments Act defines a Bill of Exchange as follows:Bill of Exchange as follows:

““A bill of exchange is an instrument in writing A bill of exchange is an instrument in writing containing an unconditional order, signed by the containing an unconditional order, signed by the maker, directing a certain person to pay a maker, directing a certain person to pay a certain sum of money only to, or to the order of, certain sum of money only to, or to the order of, a certain person or to the bearer of the a certain person or to the bearer of the instrument.”instrument.”

Specimen of Bill of ExchangeSpecimen of Bill of Exchange

ChequeCheque

A cheque is the means by which a person who A cheque is the means by which a person who has fund in the hand of a bank withdraws has fund in the hand of a bank withdraws the same or some part of it.the same or some part of it.

A cheque is a kind of bill of exchange but it A cheque is a kind of bill of exchange but it has additional qualification namely-has additional qualification namely-

1- It is always drawn on a specified banker 1- It is always drawn on a specified banker andand

2-It is always payable on demand without any 2-It is always payable on demand without any days of grace.days of grace.

Holder Holder

Holder means any person entitled in his Holder means any person entitled in his own name to the possession a promissory own name to the possession a promissory note, bill of exchange or cheque and to note, bill of exchange or cheque and to recover or receive the amount due there on recover or receive the amount due there on from the parties there on. A holder must from the parties there on. A holder must therefore have the possession of the therefore have the possession of the instrument and also the right to recover the instrument and also the right to recover the money in his own name.money in his own name.

Holder in due courseHolder in due course

““Holder in due course means any person Holder in due course means any person who for consideration became the possessor who for consideration became the possessor of a promissory note, bill of exchange or of a promissory note, bill of exchange or cheque, if payable to the bearer or the payee cheque, if payable to the bearer or the payee or indorse there of ,if payable to the order or indorse there of ,if payable to the order before the amount mentioned in it became before the amount mentioned in it became payable , and without having sufficient payable , and without having sufficient cause to believe that any defect existed in cause to believe that any defect existed in the title of the person from who he derived the title of the person from who he derived his title’his title’

DischargeDischarge

““Discharge means release from obligation”.Discharge means release from obligation”. By PaymentBy Payment By express waiverBy express waiver By cancellationBy cancellation By material alteration or lapse of time.By material alteration or lapse of time.

DishonorDishonor

It may be by non acceptance or non paymentIt may be by non acceptance or non payment A bill of exchange can be dishonored by non A bill of exchange can be dishonored by non

acceptance in the following ways-acceptance in the following ways- 1-Does not accept 48 hours from the time of 1-Does not accept 48 hours from the time of

presentmentpresentment 2-drawee is fictitious person2-drawee is fictitious person 3-Drawee has become insolvent or dead3-Drawee has become insolvent or dead 4-Drawee is incompetent4-Drawee is incompetent

Crossing of ChequeCrossing of Cheque

Open cheque or bearer chequeOpen cheque or bearer cheque Crossed chequeCrossed cheque

INDIAN PENAL CODE,1860INDIAN PENAL CODE,1860

INDIAN PENAL CODE, 1860INDIAN PENAL CODE, 1860 Extends to whole of India except the state of J&K.Extends to whole of India except the state of J&K. Every person shall be liable to punishment under this Every person shall be liable to punishment under this

Code and not otherwise for every act or omission Code and not otherwise for every act or omission contrary to the provisions thereof, of which he shall be contrary to the provisions thereof, of which he shall be guilty within India.guilty within India.

Even a foreigner who enters the Indian territory also Even a foreigner who enters the Indian territory also submits himself to the operation of Indian laws and he submits himself to the operation of Indian laws and he cannot be allowed to plead in defence that he did not cannot be allowed to plead in defence that he did not know that he was doing wrong, as the act was not an know that he was doing wrong, as the act was not an offence in his own country.offence in his own country.

It is a cardinal principle of criminal law that all persons It is a cardinal principle of criminal law that all persons should be treated equal in the eyes of law. should be treated equal in the eyes of law.

EXCEPTIONSEXCEPTIONS

According to provisions of Art.361 of the Constitution of India.According to provisions of Art.361 of the Constitution of India.– High dignitaries of the StateHigh dignitaries of the State i.e the President of India and the Governors i.e the President of India and the Governors

of the States.of the States.

» Not answerable to any court for the exercise and performance and Not answerable to any court for the exercise and performance and duties of his office or for any act done or purporting to be done by him duties of his office or for any act done or purporting to be done by him in the exercise and performance of those powersin the exercise and performance of those powers

» No criminal proceedings whatsoever shall be instituted in any court No criminal proceedings whatsoever shall be instituted in any court during the term of his office.during the term of his office.

» No process for arrest or imprisonment shall be issued from any court No process for arrest or imprisonment shall be issued from any court during the terms of his office.during the terms of his office.

» No civil proceedings in which the relief is claimed No civil proceedings in which the relief is claimed against the President or the Governor shall be against the President or the Governor shall be instituted during his term of office in any court in instituted during his term of office in any court in respect of any act or purporting to be done by him in respect of any act or purporting to be done by him in his personal capacity.his personal capacity.

– DiplomatsDiplomatsAmbassadors and certain members of Ambassadors and certain members of

diplomatic diplomatic staff also enjoy immunity from the staff also enjoy immunity from the jurisdiction of jurisdiction of the courts of the country.the courts of the country.

– Alien enemy Alien enemy » Cannot be tried by the criminal courts of the country Cannot be tried by the criminal courts of the country

in respect of their acts of war. They shall be dealt in respect of their acts of war. They shall be dealt with under martial law. with under martial law.

– Foreign armyForeign army» If a foreign army, by consent of the Indian If a foreign army, by consent of the Indian

Government, is stationed on Indian soil, it is exempt Government, is stationed on Indian soil, it is exempt from the jurisdiction of the state and consequently from the jurisdiction of the state and consequently from the jurisdiction of the criminal courts.from the jurisdiction of the criminal courts.

– WarshipsWarships» Foreign naval forces on board of warships of their Foreign naval forces on board of warships of their

country in territorial waters of India are not subject country in territorial waters of India are not subject to the jurisdiction of the criminal courts of the to the jurisdiction of the criminal courts of the country.country.

Section 166Section 166::Public servant disobeying Public servant disobeying law,with the indent to cause injury to any law,with the indent to cause injury to any person.person.

Punishable with simple imprisonment for a Punishable with simple imprisonment for a term upto one year or with a fine or both.term upto one year or with a fine or both.

Section 167Section 167: : Public servant framing and Public servant framing and incorrect document with the intent to incorrect document with the intent to cause injury.cause injury.

Punishable with imprisonment upto three Punishable with imprisonment upto three year or with fine or with both.year or with fine or with both.

Section 168Section 168--Public servant unlawfully Public servant unlawfully engaging in tradeengaging in tradePunishable with simple imprisonment upto Punishable with simple imprisonment upto one year or with fine or with both.one year or with fine or with both.

Section 169Section 169--Public servant unlawfully Public servant unlawfully buying or bidding for properties. buying or bidding for properties. Punishable with simple imprisonment with Punishable with simple imprisonment with two years or with fine both;and the two years or with fine both;and the property, if purchased, shall be confiscatedproperty, if purchased, shall be confiscated

Section 170Section 170--Personating a public servant.Personating a public servant.Punishable for a term of two years or with a Punishable for a term of two years or with a fine or with both. fine or with both.

Section 171Section 171--Wearing garb or carrying Wearing garb or carrying token used by public servant with token used by public servant with fraudulent intent.fraudulent intent.

Punishable with imprisonment with three Punishable with imprisonment with three months or with fine upto Rs.200/- or both.months or with fine upto Rs.200/- or both.