Course Overview
2h 35m | 21 Videos | 80915 Views | 
All Levels The course on the “Negotiable Instruments Act” deals with complete details of enactment of the various acts with its amendments in conjunction with other laws under Indian Contract Act, Indian Stamps Act, Transfer of Property Act, Partnership Act, Indian Companies Act etc.
What are Negotiable Instruments, its definition under Section 13, and the essential features of a Negotiable Instrument are discussed with suitable examples, wherever necessary. How a Promissory note is defined under Section 4, a Bill of Exchange under Section 5 and a cheque under Section 6 are explained in a lucid manner for understanding the subject, for the beginners. Along with the technological developments in all other sectors, the banking sector also has undergone vast changes with the introduction of Core Banking Solutions and Internet based banking / Mobile banking services. The introduction of the computers and MICR cheques in 1980s were the early off-shooters in the banking sector, which have entirely changed the banking scenario in the country. The distinctions between a Promissory Note, Bill of Exchange and a Cheque are specifically narrated and discussed which will help the readers / listeners to fully understand them.
Classification of bills into Inland bills and Foreign bills, its individual features, dishonour of a bill, the rights available to the drawer and its endorsees on dishonour, the necessity for noting and protesting of a foreign bill, the process involved in the same, are explained in detail.
Who is a “Holder in due course” as defined under Section 9, what are the rights and privileges to him, are narrated clearly. The definition of “Payment in due course” under Section 10 and how it will protect a paying banker while making payment of an instrument are also discussed.
What is “negotiation” and what is the difference between “negotiation” and “assignment” are also discussed for a better understanding.
“Once a bearer, always a bearer” is the accepted norm under the banking circles which gives protection to a Collecting banker under Sections 131 and 85. Various other stipulations, such as the collecting banker should collect the instrument for his customer only, the instrument should be crossed and the banks should act in good faith and without negligence are the prime conditions to be met, for getting protection under Section 131, for a Collecting banker. This has been clearly explained here.
Definition of Endorsement, its different types and various provisions with regard to each, have been discussed in this lecture.
Different types of crossings such as general crossing, special crossing, Non-negotiable crossing, what are the implications of each crossing and the liability of the paying banker under Section 126, are briefed with illustrations. What does not constitute a crossing, like a “single line” or and mark “X” are also discussed for getting a clearer picture.
The responsibilities of a Paying banker and a Collecting banker are also explained in a nice manner.
