Professional Documents
Culture Documents
• Illustration
• (a) A, the holder of a negotiable instrument payable to
bearer, delivers it to B's agent to keep for B. The
instrument has been negotiated.
• (f) as to stamps-
– that a lost promissory note, bill of exchange or cheque
was duly stamped;
Presumptions as to negotiable instruments …
• Crossed specially
– Where a cheque is crossed specially, the banker on
whom it is drawn shall not pay it otherwise than to the
banker to whom it is crossed, or his agent for collection.
Payment in due course of
crossed cheque
• Where the banker on whom a crossed cheque is
drawn has paid the same in due course, the banker
paying the cheque, and (in case such cheque has
come to the hands of the payee) the drawer
thereof, shall respectively be entitled to the same
rights, and be placed in the same position in all
respects, as they would respectively be entitled to
and placed in if the amount of the cheque had
been paid to and received by the true owner
thereof.
Cheque bearing "not negotiable"
• (b) the payee or the holder in due course of the cheque, as the
case may be, makes a demand for the payment of the said
amount of money by giving a notice, in writing, to the drawer
of the cheque, within thirty days of the receipt of information
by him from the bank regarding the return of the cheque as
unpaid, and
• (c) the drawer of such cheque fails to make the payment of the
said amount of money to the payee or, as the case may be, to
the holder in due course of the cheque, within fifteen days of
the receipt of the said notice.