BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -THE NEGOTIABLE INSTRUMENTS ACT, 1881. 13. ‘’ Negotiable instrument”.-1[ (1) A “negotiable instrument” means a promissory note, bill of exchange or cheque payable either to order or to bearer.

Detailed explanation-2: -31. The drawee of a cheque having sufficient funds of the drawer in his hands properly applicable to the payment of such cheque must pay the cheque when duly required so to do, and, in default of such payment, must compensate the drawer for any loss or damage caused by such default.

Detailed explanation-3: -Explanation (i)–A promissory note, bill of exchange or cheque is payable to order which is expressed to be so payable or which is expressed to be payable to a particular person, and does not contain words prohibiting transfer or indicating an intention that it shall not be transferable.

Detailed explanation-4: -Section 6 in The Negotiable Instruments Act, 1881. 1 [ 6 “Cheque”.-A “cheque” is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand and it includes the electronic image of a truncated cheque and a cheque in the electronic form.