Professional Documents
Culture Documents
What is it
Negotiable= Transferable. Instruments= Documents. Documents= Records, papers which give some right.
Negotiable Instrument is transferred just like a currency money. It behaves like money. Person who gets the document in course of business gets a good title even when title of the person transferring is defective.
A buys wheat from B for Rs 25,000. He pays him by giving a promissory note of Rs 25,000. B transfers it to C for a car which is used for 5,000 Km. Actually car is used for 20,000 Km, Contract is voidable. But before B avoids the contract it C has transferred the promissory note to D for Steel bought from him. D gets good title.
2.
3.
Rs 5,000/25/02/2011
400025.
Date
Mumbai
I Promise to pay 3 months from the date, Anya Sharma or bearer , a sum of Rupees Five Thousand only.
Signed Deepak
Rs 5,000/25/02/2011
Date
Nanded
Pay 3 months after sight to Bank of Maharashtra , A/c Textile Corporation of Marathwada, or order , five thousand only. To Bharat Textiles & Co. Signed Deepak Shukla. Aurangabad. Nanded. Accepted
Negotiation
Negotiation may be :By Delivery or By delivery & endorsement. Instrument payable to a bearer. :- By delivery only. (instrument is written payable to person or bearer)
Instrument payable to a particular person or order:By delivery & endorsement( Holder will sign on the back)
Presentation.
1.
2.
Payable on demand:- YOU DEMAND MONEY & GET MONEY No question of first getting accepted . Promissory note & cheque are payable on demand, No acceptance required.
Some Bills are payable after sight:- SHOW ME THE BILL & THEN I PAY AFTER FEW DAYSthese require presentation. Maturity is to be fixed.
Maturity
Date of maturity= Period mentioned +3 days of grace. They should be presented within reasonable time & definitely before maturity if maturity is already mentioned.
This is required to demand payment. Should be presented within reasonable time. In case of bill:- Generally on day of maturity or next day.
Bill Dishonored
If acceptor does not pay bill gets dishonored. Payee to get it noted with notary.
Types of crossing
General Crossing:- Two parallel lines. Payment only thru bank & not at counter. Special Crossing:- Two lines & write banks name in between the lines. Cheque should be presented only through that bank.
Types of crossing
A/c Payee Crossing. Payment only to the payee. RBI instruction:- Bank should pay only to payee. If cheque is endorsed send the cheque to drawer & he should remove account payee crossing. Failing bank to attract penalty.
Cheque Dishonored.
Sec 138:- Penalty twice the amount +2 years imprisonment. Payee to give notice to drawer within 30 days. Drawer to pay payee within 15 days. Failing, payee to file complaint within 30 days in Court of Metropolitan Magistrate.
Thank you.
Presented bySonal Pose --- 95 Darshana Trivedi ---118