Section 138 Of Negotiable Instrument Act In Bangladesh
- The Act went through a final amendment in the year 2000. Although 134 Years old, the rules under the Act are timeless. The previous chapter in the Negotiable Instrument Act 1881 (hereinafter N.I.ACT) dealt with ‘Notaries Public’ and s.138 had the title of ‘Power to appoint notaries public’.
- May 1, 2018 - Under Section 138 of the Negotiable Instruments Act 1881, if a cheque is dishonoured, an offence is committed. Such offences under the Act of 1881 are strict in nature. As a result, it is the desired weapon of choice for most banks in Bangladesh when giving loans to borrowers.
THE NEGOTIABLE INSTRUMENTS ACT, 1881 (ACT NO. XXVI OF 1881). Negotiable instrument made, etc., without consideration. Dishonour of cheque for.
Contents.History The history of the present Act is a long one. The Act was originally drafted in 1866 by the 3rd Indian Law Commission and introduced in December 1867 in the Council and it was referred to a Select Committee. Objections were raised by the mercantile community to the numerous deviations from the English Law in which it contained. The Bill had to be redrafted in 1877. After the lapse of a sufficient period for criticism by the Local Governments, the High Courts and the chambers of commerce, the Bill was revised by a Select Committee. In spite of this Bill could not reach the final stage. In 1880 by the Order of the Secretary of State, the Bill had to be referred to a new Law Commission.
On the recommendation of the new Law Commission, the Bill was re-drafted and again it was sent to a Select Committee which adopted most of the additions recommended by the new Law Commission. The draft thus prepared for the fourth time was introduced in the Council and was passed into law in 1881 being the Negotiable Instruments Act, 1881 (Act No.26 of 1881)The most important class of Credit Instruments that evolved in India were termed.
Their use was most widespread in the twelfth century and has continued till today. In a sense, they represent the oldest surviving form of credit instrument. These were used in trade and credit transactions; they were used as remittance instruments for the purpose of transfer of funds from one place to another. In Modern era served as.According to Section 13 of the Negotiable Instruments Act, 'A negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer.' But in Section 1, it is also described that Local extent, Saving of usage relating to hundis, etc., Commencement.It extends to the whole of India but nothing herein contained affects the Indian Paper Currency Act, 1871, Section 2, or affects any local usage relating to any instrument in an oriental language. Provided that such usages may be excluded by any words in the body of the instrument, which indicate an intention that the legal relations of the parties thereto shall be governed by this Act; and it shall comeMain Types of Negotiable Instruments are:. Inland Instruments.
Section 138 Of Negotiable Instrument Act In Bangladesh Form
Foreign Instruments. Bank.
Finance companies(listed) DraftModern day We prefer to carry a small piece of paper known as rather than carrying the currency worth the value of the. Before 1988 there being no provision to restrain the person issuing the without having sufficient funds in his account. Of course on there is a civil liability accrued.
First published onThe term ‘Negotiable’ means ‘transfer by endorsement or delivery’ and the term ‘Instrument’ means ‘any legal document in writing, which is created in favour of any person. Therefore, Negotiable Instruments are written statements implying payment of money, either on demand or within a particular time period with the drawer’s/payer’s name on it.History and backgroundIn India, ( “Act”) codifies the law governing transactions involving negotiable instruments. As can be seen, this is a law passed during the British Era which continues till date to govern economical transactions.There are various negotiable instruments; such as cheques, promissory notes, bills of exchange, bank notes, etc.