Académique Documents
Professionnel Documents
Culture Documents
1881
PRESENTED BY:-
Adeeb Ahmed (01)
Nilanjana Dey (09)
Subarna Dey (10)
Dipanjana saha (29)
Dinesh Nikware (25)
Tushar Sonparote (36)
Contents:-
Dishonor of Cheque
Online Transactions
Negotiable instrument : Definition
Freely transferable
Defect free title to the Transferee
Recovery
Ceiling
Payable to order
Payable to Bearer
Payment
Presumptions of Negotiable Instruments
Consideration
Date
Time of acceptance
Time of Transfer
Order of endorsement
Stamp
Holder-in-due-course
Proof of protest
Promissory Note
According to section 4 of the Act, A promissory note is an
instrument(not being a bank note or currency note)
containing an unconditional undertaking, signed by the
maker to pay a certain sum of money only to, or the order of
a certain person, or only to bearer of the instrument.
1. Parties
2. Nature of payment
3. Acceptance
4. Liability
5. Notice
6. Maker as payee
7. Protest
8. Payable to bearer
9. Exemption
CHEQUE
A cheque is a bill of exchange drawn on a specified banker and
not expressed to be payable otherwise than on demand.
2. Crossed Cheques:
A crossed cheque cannot be cashed across
the counter but must be collected through a
banker. A crossing acts as a direction to the
drawee to pay the money to a specified
banker as desired by the payee.
CROSSING OF CHEQUES
Crossing of cheques is of three different types:
1. General Crossing:
2. Special Crossing.
3. Account payees crossing.
GENERAL CROSSING
Specimens of General
crossing
SPECIAL CROSSING
When the name of a banker is written across the face of a
cheque with or without the word
not negotiable, It is a special crossing.
Thus, in special crossing the paying banker will pay only to the
banker whose name appears across the cheque, or to his
collecting agent.
Specimens Of Special
Crossing
ACCOUNT PAYEES CROSSING
Specimens Of Account
Payees Crossing
LY E
Y EE N
O BL
A
P LY EE IA
C N AY OT
/
A O P EG
/C N
A T
O
N
DISHONOURING OF A CHEQUE
The cheque has to be presented to the drawee Bank within 6 months from
the date on which it is drawn or within the period of its validity, whichever is
earlier;
Demand has to be made for the payment of the said amount of money by
giving a 30 days written notice to the drawer of the cheque within 30 days from
the date of dishonor;
Failure to make the payment by the drawer within 30 days of the receipt of
the said notice (Clause c of the provision to Section 138). After the expiry of this
THE PROCEDURE FOR THE RECOVERY OF MONEY IN CASE
OF A DISHONOURED CHEQUE UNDER SEC 138 OF NI ACT
1881
When the cheque is dishonoured, drawee bank issues Cheque Return Memo
to the payee bank mentioning reasons for non-payment
The holder or payee can resubmit the cheque if he feels it will get honoured
for second time within 3 months of the date mentioned on the cheque
If failed again the payee has the right to prosecute the drawer of the cheque
The payee can prosecute only if the cheque drawn was to repay a debt of the
defaulter towards payee.(cheque drawn as gifts, loan, unlawful purpose
cannot be considered for prosecution)
PUNISHMENT FOR DISHONOUR OF
CHEQUE (SECTION 138):