The Negotiable Instruments Act, 1881, serves as a key pillar of India’s financial and commercial framework, ensuring the credibility and smooth functioning of monetary transactions through instruments such as promissory notes, bills of exchange, and cheques. It defines the rights, duties, and liabilities of parties involved, while provisions like Section 138 address cheque dishonour and promote accountability in financial dealings.
Legal Bites offers comprehensive study materials on the Negotiable Instruments Act to support students, legal practitioners, and researchers in understanding both the theoretical and practical aspects of the law.
With clear explanations, case summaries, and analytical insights, these materials serve as a one-stop resource for mastering the principles governing negotiable instruments and their continuing significance in modern business and banking practices.
Module 1: Introduction & Basic Concepts
- Negotiable Instruments Act MCQs for Law Aspirants: Solved High-Quality MCQs for Judiciary Prelims
- Historical Evolution & Background
- Essential Characteristics/Features
Module 2: Types of Negotiable Instruments
- Promissory Note: Meaning, Essentials, Parties
- Bill of Exchange: Meaning, Essentials, Parties
- Cheque: Definition, Features
- Other Negotiable Instruments by Usage (e.g. Hundi, Banker’s Drafts)
Module 3: Negotiation, Endorsement & Transfer
- Negotiation: Meaning, Modes
- Endorsement: Types
- Effect/Consequences of Endorsement
- Difference between Assignment and Negotiation
Module 4: Presentment, Dishonour & Notice
- Presentment Rules
- Dishonour Mechanisms
- Noting & Protest
Module 5: Discharge, Liability & Remedies
- Discharge Mechanisms
- Liability of Parties
- Remedies/Suits
Module 6: Presumptions under the Act
- Sections 118, 119 and key presumptions
Module 7: Cheque Bounce Offence
- Cheque Bounce: Concept, Rules, Notice, Procedure & Penalty
- Remedy to Initiate Criminal Proceedings
- Absolute Liability of Drawer (Section 139)
- Modes of Dishonour of Cheque
- Essentials for Criminal Proceedings in Case of Dishonour
Case Laws
- Sanjabij Tari v. Kishore S. Borcar & Anr. (2025) | Probation Benefit Available in Cheque Bounce Cases
- Kaveri Plastics v. Mahdoom Bawa Bahrudeen Noorul (2025) | Exact Cheque Amount in Demand Notice Mandatory under Section 138 NI Act
Important articles
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