Institute of

management studies
D.A.V.V.
Presentation on
Negotiable Instrument Act 1881
&
Indian Penal Code 1860

Submitted To:

Submitted By:

Nisha Siddiqui

Aakash kayat
Vikky khede
Yogesh chouhan

Introduction
The

law relating to negotiable

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

Types of Negotiable Instruments

Negotiable instruments are as follows:
Bills of exchange,
Cheque and promissory notes,
Bank notes,
Exchequer bills,
Share warrants,
Bearer debentures,
Dividend warrants,
Share certificate.

Promissory Note

Definition:
According to Section 4, A promissory

note is an instrument in writing (not

being a bank-note or a currencynote) containing an unconditional
undertaking, signed by the maker,
to pay a certain sum of money only
to, or to the order of, a certain
person, or to the bearer of the
instrument.

Specimen of a Promissory Note

Bill of Exchange

Definition:
Section 5 of the Negotiable Instruments Act defines a
Bill of Exchange as follows:
A bill of exchange is an instrument in writing
containing an unconditional order, signed by the
maker, directing a certain person to pay a
certain sum of money only to, or to the order of,
a certain person or to the bearer of the
instrument.

Specimen of Bill of Exchange

Cheque
A cheque is the means by which a person who
has fund in the hand of a bank withdraws
the same or some part of it.
A cheque is a kind of bill of exchange but it
has additional qualification namely1- It is always drawn on a specified banker
and
2-It is always payable on demand without any
days of grace.

Holder

Holder means any person entitled in his

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

Holder in due course

Holder in due course means any person

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

Discharge
Discharge means release from obligation.
By Payment
By express waiver
By cancellation
By material alteration or lapse of time.

Dishonor

It may be by non acceptance or non payment

A bill of exchange can be dishonored by non
acceptance in the following ways1-Does not accept 48 hours from the time of
presentment
2-drawee is fictitious person
3-Drawee has become insolvent or dead
4-Drawee is incompetent

Crossing of Cheque
Open cheque or bearer cheque
Crossed cheque

INDIAN PENAL CODE,1860

INDIAN PENAL CODE, 1860

Extends to whole of India except the state of J&K.

Every person shall be liable to punishment under this
Code and not otherwise for every act or omission
contrary to the provisions thereof, of which he shall be
guilty within India.
Even a foreigner who enters the Indian territory also
submits himself to the operation of Indian laws and he
cannot be allowed to plead in defence that he did not
know that he was doing wrong, as the act was not an
offence in his own country.
It is a cardinal principle of criminal law that all persons
should be treated equal in the eyes of law.

EXCEPTIONS

According to provisions of Art.361 of the Constitution of India.

High dignitaries of the State i.e the President of India and the Governors
of the States.
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
in the exercise and performance of those powers
No criminal proceedings whatsoever shall be instituted in any court
during the term of his office.
No process for arrest or imprisonment shall be issued from any court
during the terms of his office.

 No civil proceedings in which the relief is claimed

against the President or the Governor shall be
instituted during his term of office in any court in
respect of any act or purporting to be done by him in
his personal capacity.

Diplomats
Ambassadors and certain members of diplomatic
staff also enjoy immunity from the jurisdiction of
the courts of the country.

Alien enemy
Cannot be tried by the criminal courts of the country
in respect of their acts of war. They shall be dealt
with under martial law.

 Foreign army
If a foreign army, by consent of the Indian
Government, is stationed on Indian soil, it is exempt
from the jurisdiction of the state and consequently
from the jurisdiction of the criminal courts.

Warships
Foreign naval forces on board of warships of their
country in territorial waters of India are not subject
to the jurisdiction of the criminal courts of the
country.

Section 166:Public servant disobeying

law,with the indent to cause injury to any
person.
Punishable with simple imprisonment for a
term upto one year or with a fine or both.
Section 167: Public servant framing and
incorrect document with the intent to
cause injury.
Punishable with imprisonment upto three
year or with fine or with both.

Section 168-Public servant unlawfully

engaging in trade
Punishable with simple imprisonment upto
one year or with fine or with both.
Section 169-Public servant unlawfully
buying or bidding for properties.
Punishable with simple imprisonment with
two years or with fine both;and the
property, if purchased, shall be confiscated
Section 170-Personating a public servant.
Punishable for a term of two years or with a
fine or with both.

Section 171-Wearing garb or carrying

token used by public servant with
fraudulent intent.
Punishable with imprisonment with three
months or with fine upto Rs.200/- or both.