Page 1 : Negotiable Instruments Act, , Negotiable instruments define as under:, , 1. The word negotiable means ‘transferable by delivery”, , 2. Thus word instrument means ‘a written document by which a right so created in favor of, some person’, , 3. The transfer should be unrestricted and in good faith., , + Therefore, a negotiable instrument is a document guaranteeing the payment of a specific, amount of money, either on demand, or at a set time, with the payer named on the, document, Its an indebtedness to pay an amount and the negotiable instrument is an, unconditional guarantee for the same., , + Some Examples of Negotiable instruments are Promissory notes, Cheques bounce case ,, Bills of Exchange, bearer bonds, bank notes etc., , + Thus Indian law on Negotiable instruments govern by the Negotiable Instruments Act of, 1881, , + Since, Negotiable Instrument Act 1881 was passed in 1882 and was amended in, 1989,2002 and 2015., , + Before 1988 there was no provision to restrain the person issuing the cheque without, having sufficient funds in his account, The only remedy against a Dishonored cheque a, civil liability accrue, , + With 2002 amendment, Act inserts five new sections from 143 to 147 touching various, limbs of the parent Act., , Important definition under Negotiable instruments act,1881:, , Negotiable instruments:, , (DA” negotiable instrument ” means a promissory note, bill of exchange or cheque payable, either to order or to bearer., , (2) Though negotiable instrument may make payable to two or more payees jointly, or it may be, made payable in the alternative to one of two, or one or some of several payees., , Promissory note:, , , , A” promissory note” is an instrument in writing (not being a bank-note or a currency-note), 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.