A PROJECT ON

COMPARATIVE ANALYSIS BETWEEN PROMISSORY

NOTE, BILL OF EXCHANGE AND CHEQUE
_________________________________________

SUBMITTED TO – MRS. KIRAN KORI

SUBJECT – BANKING LAW

___________________________________________________________

SUBMITTED BY: DEVANSHU JAIN

ROLL NO.: 51

SEMESTER: IX

DATE: 26TH OCTOBER, 2016

HIDAYATULLAH NATIONAL LAW UNIVERSITY

(CHHATTISGARH)
Acknowledgements

Thanks to the Almighty who gave me the strength to accomplish the project with sheer hard
work and honesty.

This research venture has been made possible due to the generous co-operation of various
persons. To list them all is not practicable, even to repay them in words is beyond the domain of
my lexicon.

May I observe the protocol to show my deep gratitude to the venerated Faculty-in-charge, for his
kind gesture in allotting me such a wonderful and elucidating research topic. Sir, your sincere
and honest approach have always inspired me and pulled me back on track whenever I went
astray.
Last, but by no means the least, I would like to thank all the members of HNLU family in
general and my blooming and charismatic friends in particular for their wholehearted co-
operation throughout the odyssey.

Devanshu Jain

1
 Table of Contents

Acknowledgements..........................................................................................................................1

Objectives........................................................................................................................................4

Research Methodology...................................................................................................................4

Introduction......................................................................................................................................5

Promissory Note..............................................................................................................................6

History of Promissory Notes...................................................................................6

Section 4 of the Negotiable Instruments Act, 1881.................................................7

Illustrations..............................................................................................................7

Secured & unsecured...............................................................................................8

Promissory notes vs IOU.........................................................................................9

Requisities of a promissory note..............................................................................9

Parties to a Promissory Note....................................................................................9

Bill of Exchange............................................................................................................................10

Features of Bill of Exchange.................................................................................11

Parties to a Bill of Exchange.................................................................................11

Inland Bill & Foreign Bill......................................................................................12

Cheques..........................................................................................................................................13

Cheque under Negotiable Instruments Act............................................................14

Parties to a Cheque................................................................................................14

Types of Cheque....................................................................................................14

Self cheque.............................................................................................................14

Bearer cheque........................................................................................................15

2
 Crossed cheque......................................................................................................15

Bill of Exchange and Promissory Note.........................................................................................15

Bill of Exchange and Cheque........................................................................................................16

Promissory Note and Cheque........................................................................................................17

Conclusion.....................................................................................................................................18

Bibliography..................................................................................................................................19

3
Objectives
 To discuss in detail promissory notes, bill of exchange and cheque.
 To do a comparative analysis between the three i.e. promissory notes, bill of exchange
and cheque and derive a conclusion based on it.

Research Methodology

The research is based on descriptive and analytical sources of information comprising of books,
articles, journals and the internet. The data in this project report is from secondary sources. The
topic has been extensively researched upon so as to accomplish the goal of completion of the
current project report. Books from the university’s library have been used. Computer from the
computer laboratory of the university has been used for the purpose of secondary research and is
the main source of project.

4
Introduction
In business there are several payments made in a single day and it is not possible to make use of
cash all the time. So to eliminate the risk of carrying cash for making or receiving payments of
goods & services businesses prefer to use negotiable instruments.

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. More specifically, it is
a document contemplated by or consisting of a contract, which promises the payment of money
without condition, which may be paid either on demand or at a future date. The term can have
different meanings, depending on what law is being applied and what country it is used in and
what context it is used in.

According to the Negotiable Instruments Act, 1881 in India there are just three types of
negotiable instruments i.e., promissory note, bill of exchange and cheque.

A Promissory Note is a written dated and signed two-party document in which a borrower agrees
(promises) to pay back money to a lender according to specified terms. A written promise to pay
a certain sum of money, at a future time, unconditionally.

A bill of exchange is a written agreement between two parties – the buyer and the seller – used
primarily in international trade. It is documentation that a purchasing party has agreed to pay a
selling party a set sum at a predetermined time for delivered goods. The buyer or seller typically
employs a bank to issue the bill of exchange due to the risks involved with international
transactions. For this reason, bills of exchange are sometimes also referred to as bank drafts.

A Cheque is a negotiable instrument in writing which instruct a financial institution to pay a

specific amount of money from a specific demand account held in the depositor’s name with that
institution. In other words Cheque is a simple payment instrument that people use to transfer
currency from one account to another. It is considered to be the most convenient mode of
payment that obliterates the need of cash in any business.

5
Promissory Note

The sum of money promised to be paid must be certain and definite amount. The law relating to
‘Negotiable Instruments’ in a Bills of Exchange Act, is codified in the commonwealth. Almost
all jurisdictions, including in New Zealand, UK, Mauritius, codified the law as to negotiable
Instruments. In India, The Negotiable Instrument Act, 1881 came into force. To understand the
meaning of negotiable instrument, it is suffice to say that it means a promissory note, bill of
exchange or cheque payable either to order or to bearer. During the Renaissance, Promissory
note was in use in Europe. Later, during 20th century, the instrument changed substantially both
in use and form and certain claused were added.

Promissory note is a written promise to pay a debt. It is a financial instrument, in which one
party (maker or issuer) promises in writing to pay a determinate sum of money to the other (the
payee), either at a fixed, determinable future time or on demand of the payee subject to specific
terms.

Thus, a promissory note generally means a signed document containing a written promise to pay
a stated sum to a specified person or the bearer at a specified date or on demand. A promissory
note can be either payable on demand or at a specific time. If the promissory note is
unconditional and readily salable, it is called a negotiable instrument.

The terms of a note usually include the principal amount, the interest rate (if any), the parties,
date, terms of repayment (which could include interest) and the maturity date. Sometimes,
provisions are included concerning the payee's rights in the event of a default, which may include
foreclosure of the maker's assets.

History of Promissory Notes

Common prototypes of bills of exchanges and promissory notes originated in China. Here, in the
8th century during the reign of the Tang Dynasty they used special instruments called feitsyan
for the safe transfer of money over long distances. 1 Later such document for money transfer used
by Arab merchants, who had used the prototypes of bills of exchange – suftadja and hawala in
10–13th centuries, then such prototypes had used by Italian merchants in the 12th century. In

1
Mohd. Jamal Saheb v. Munnar Begum, , which does not accord with the ruling of the Full Bench of the Madras
High Court in Perumal Chettiar v. Kamakshi Ammal, ILR ( 1938 ) Mad 933 ,( AIR 1938 Mad 785 ( FB ) ).

6
Italy in 13–15th centuries bill of exchange and promissory note obtain their main features and
further phases of its development have been associated with France (16–18th centuries, where
the endorsement had appeared) and Germany (19th century, formalization of Exchange Law). In
England (and later in the U.S.) Exchange Law was different from continental Europe because of
different legal systems

Section 4 of the Negotiable Instruments Act, 1881:

"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.

"Promissory note" means a promissory note as defined by the Negotiable Instruments Act, 1881;

"It also includes a note promissing the payment of any sum of money out of any particular fund
which may or may not be available, or upon any condition or contingency which may or may not
be performed or happen."

In the context of this definition of "promissory note" given in Section 2(22) of the Stamp Act, the
definition of the term as given in Negotiable Instruments Act, 1881 assumes importance. Section
4 of the latter act defines "promissory note" as follows:

"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.

Illustrations
A signs instruments in the following terms:

(a) "I promise to pay B or order Rs. 500."

(b) "I acknowledge myself to be indebted to B in Rs. 1,000, to be paid on demand, for value
received."

7
(c) "Mr. B, I.O.U. Rs. 1,000".

(d) "I promise to pay B Rs. 500, and all other sums which shall be due to him."

(e) "I promise to pay B Rs. 500, first deducting thereout any money which he may owe me."

(f) "I promise to pay B Rs. 500 seven days after my marriage with C."

(g) "I promise to pay B Rs. 500 on D's death, provided D leaves me enough to pay that sum."

(h) "I promise to pay B Rs. 500 and to deliver to him my black horse on 1st January next."

The instruments respectively marked (a) and (b) are promissory notes. The instruments
respectively marked (c), (d), (e), (f), (g) and (h) are not promissory notes."

This definition of promissory note itself indicates that there may be several types of promissory
notes. Out of these various categories of promissory notes, some may be treated as 'negotiable
instrument' within the meaning of Section 13 of the Negotiable Instruments Act and some others
may not be so treated, but by that very fact, the nature of the document will not change, if it is
otherwise a promissory note. In other words, if a document is a 'promissory note' within the
meaning of Section 4 of the Act, it will continue to be 'promissory note', whether it comes or
does not come within the meaning of the term 'negotiable instrument' as defined in Section 13 of
the Act. For this reason, were are of the view that Section 13 of the Negotiable Instruments Act,
or the definition of the term 'negotiable instrument' is wholly irrelevant when it comes to
deciding the nature of a particular document as a promissory note, or otherwise. Similarly and
for similar reasons, it is wholly irrelevant to refer to the provisions of Section 13 of the Act while
deciding the nature of any document as a 'bond' or otherwise. Accordingly anything to the
contrary held in any of the authorities referred to in the orders of reference is not a good law.’

Secured & unsecured

A promissory note is of two types secured and unsecured promissory note. An unsecured
promissory note is not attached to anything, the loan is made based on the maker's ability to
repay. A secured promissory note may also be made based on the maker's ability to repay, but it
is secured by a thing of value such as a car or a house.

8
If your home is used for security and you default on the promissory note, you could lose your
home. Most promissory notes attached to property are secured by either a trust deed, also known
as a deed of trust, a mortgage or a land contract, and those instruments are recorded in the public
records. Promissory notes are often unrecorded.

Promissory notes vs IOU

Promissory notes differ from IOUs in that they contain a specific promise to pay, rather than
simply acknowledging that a debt exists.

Terms, such as "loan", "loan agreement", and "loan contract" may be used interchangeably with
"promissory note" but these terms do not have the same legal meaning.

Promissory notes are evidence of a loan but they are not the same as loan agreements. In fact, the
loan agreement is legally distinct from any promissory notes associated therewith. The loan
agreement contains all of the terms and conditions of the loan contract.

Requisities of a promissory note:

a) the document must contain an unconditional undertaking to pay;

b) the undertaking must be to pay money only;
c) the money to be paid must be certain;
d) it must be payable to or to the order of a certain person or to bearer;
e) the document must be signed by the maker.

Parties to a Promissory Note

There are two parties to a promissory note.

• Maker or Drawer is the person who makes or draws the promissory note to pay a certain
amount as specified in the promissory note. He is also called the promisor.
• Drawee or Payee is the person in whose favour the promissory note is drawn. He is called
the promisee.

9
Generally, the drawee is also the payee, unless, it is otherwise mentioned in the promissory note.
In the specimen of promissory note, Ashok Kumar is the drawer or maker who promises to pay
Rs.30,000 and Harish Chander is the drawee or payee to whom payment is to made. If Harish
Chander endorses this promissory note in favour of Rohit then Rohit will become the payee.
Similarly, if Harish Chander gets this promissory note discounted from the bank then the bank
will become the payee.

Bill of Exchange
A bill of exchange or "draft" is a written order by the drawer to the drawee to pay money to the
payee. A common type of bill of exchange is the cheque (check in American English), defined as
a bill of exchange drawn on a banker and payable on demand. Bills of exchange are used
primarily in international trade, and are written orders by one person to his bank to pay the bearer
a specific sum on a specific date. Prior to the advent of paper currency, bills of exchange were a
common means of exchange. They are not used as often today.

bill of exchange is essentially an order made by one person to another to pay money to a third
person. A bill of exchange requires in its inception three parties—the drawer, the drawee, and the
payee. The person who draws the bill is called the drawer. He gives the order to pay money to
the third party. The party upon whom the bill is drawn is called the drawee. He is the person to
whom the bill is addressed and who is ordered to pay. He becomes an acceptor when he indicates
his willingness to pay the bill. The party in whose favor the bill is drawn or is payable is called
the payee. The parties need not all be distinct persons. Thus, the drawer may draw on himself
payable to his own order. A bill of exchange may be endorsed by the payee in favour of a third
party, who may in turn endorse it to a fourth, and so on indefinitely. The "holder in due course"
may claim the amount of the bill against the drawee and all previous endorsers, regardless of any
counterclaims that may have disabled the previous payee or endorser from doing so. This is what
is meant by saying that a bill is negotiable. In some cases a bill is marked "not negotiable" – see
crossing of cheques. In that case it can still be transferred to a third party, but the third party can
have no better right than the transferor.

10
According to the Negotiable Instruments Act 1881, a bill of exchange is defined as 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.

Features of Bill of Exchange

The following features of a bill of exchange emerge out of this definition.

• A bill of exchange must be in writing.

• It is an order to make payment.
• The order to make payment is unconditional.
• The maker of the bill of exchange must sign it.
• The payment to be made must be certain.
• The date on which payment is made must also be certain.
• The bill of exchange must be payable to a certain person.
• The amount mentioned in the bill of exchange is payable either on demand or on the
expiry of a fixed period of time.
• It must be stamped as per the requirement of law.

A bill of exchange is generally drawn by the creditor upon his debtor. It has to be accepted by the
drawee (debtor) or someone on his behalf. It is just a draft till its acceptance is made.

For example, Amit sold goods to Rohit on credit for Rs. 10,000 for three months. To ensure
payment on due date Amit draws a bill of exchange upon Rohit for Rs. 10,000 payable after
three months. Before it is accepted by Rohit it will be called a draft. It will become a bill of
exchange only when Rohit writes the word “accepted” on it and append his signature thereto
communicate his acceptance.

Parties to a Bill of Exchange

There are three parties to a bill of exchange:

11
 1) Drawer is the maker of the bill of exchange. A seller/creditor who is entitled to receive
money from the debtor can draw a bill of exchange upon the buyer/debtor. The drawer
after writing the bill of exchange has to sign it as maker of the bill of exchange.
2) Drawee is the person upon whom the bill of exchange is drawn. Drawee is the purchaser
or debtor of the goods upon whom the bill of exchange is drawn.
3) Payee is the person to whom the payment is to be made. The drawer of the bill himself
will be the payee if he keeps the bill with him till the date of its payment. The payee may
change in the following situations:
(a) In case the drawer has got the bill discounted, the person who has discounted
the bill will become the payee;
(b) In case the bill is endorsed in favour of a creditor of the drawer, the creditor
will become the payee.
Normally, the drawer and the payee is the same person. Similarly, the drawee and the acceptor is
normally the person. For example, Mamta sold goods worth Rs.10,000 to Jyoti and drew a bill of
exchange upon her for the same amount payable after three months. Here, Mamta is the drawer
of the bill and Jyoti is the drawee. If the bill is retained by Mamta for three months and the
amount of Rs. 10,000 is received by her on the due date then Mamta will be the payee. If Mamta
gives away this bill to her creditor Ruchi, then Ruchi will be the payee. If Mamta gets this bill
discounted from the bank then the bankers will become the payee.

In the above mentioned bill of exchange, Mamta is the drawer and Jyoti is the drawee. Since
Jyoti has accepted the bill, she is the acceptor. Suppose in place of Jyoti the bill is accepted by
Ashok then Ashok will become the acceptor.

Inland Bill & Foreign Bill

A bill that is drawn in India and paid in India or out of India to a person, who is in India, whether
Indian or Foreigner, is Inland Bill. Simply, a bill drawn in India and paid in India is a Inland Bill.

A bill which is NOT drawn in India but is payable in India to a person, who is in India and is
Indian or a foreigner is a Foreign Bill.

12
Cheques
A cheque (or check in American English) is a document that orders a bank to pay a specific
amount of money from a person's account to the person in whose name the cheque has been
issued. The person writing the cheque, the drawer, has a transaction banking account (often
called a current, cheque, chequing or checking account) where their money is held. The drawer
writes the various details including the monetary amount, date, and a payee on the cheque, and
signs it, ordering their bank, known as the drawee, to pay that person or company the amount of
money stated.

Cheques are a type of bill of exchange and were developed as a way to make payments without
the need to carry large amounts of money. Paper money evolved from promissory notes, another
form of negotiable instrument similar to cheques in that they were originally a written order to
pay the given amount to whomever had it in their possession (the "bearer").

Technically, a cheque is a negotiable instrument instructing a financial institution to pay a

specific amount of a specific currency from a specified transactional account held in the drawer's
name with that institution. Both the drawer and payee may be natural persons or legal entities.
Specifically, cheques are order instruments, and are not in general payable simply to the bearer
(as bearer instruments are) but must be paid to the payee. In some countries, such as the US, the
payee may endorse the cheque, allowing them to specify a third party to whom it should be paid.

Although forms of cheques have been in use since ancient times and at least since the 9th
century, it was during the 20th century that cheques became a highly popular non-cash method
for making payments and the usage of cheques peaked. By the second half of the 20th century, as
cheque processing became automated, billions of cheques were issued annually; these volumes
peaked in or around the early 1990s. Since then cheque usage has fallen, being partly replaced
by electronic payment systems. In an increasing number of countries cheques have either become
a marginal payment system or have been completely phased out.

13
Cheque under Negotiable Instruments Act

Section 6 of the Act defines “A cheque is a bill of exchange drawn on a specified banker, and not
expressed to be payable otherwise than on demand”.

A cheque is bill of exchange with two more qualifications, namely,

(i) it is always drawn on a specified banker, and

(ii) it is always payable on demand. Consequently, all cheque are bill of exchange, but all
bills are not cheque. A cheque must satisfy all the requirements of a bill of exchange;
that is, it must be signed by the drawer, and must contain an unconditional order on a
specified banker to pay a certain sum of money to or to the order of a certain person or
to the bearer of the cheque. It does not require acceptance

Parties to a Cheque
The following are the parties to a Cheque:

1. Drawer. He is the person who draws the cheque, i.e., the depositor of money in the
bank.
2. Drawee. It is the drawer’s banker on whom the cheque has been drawn.
3. Payee. He is the person who is entitled to receive the payment of the cheque.
4. The holder, indorser and indorsee (the same as in the case of a bill or note).
It should be noted that the issuer must have an account with the bank. There is a specified time
limit of 3 months, during which the cheque must be presented for payment. If a person presents
the cheque after the expiry of 3 months, then the cheque will be dishonored.

Types of Cheque

Self cheque
When you want to withdraw cash, you make out a cheque to ‘Self’. This is known as a self
cheque. This means that the cash will be paidto the account-holder. In practice, the bank will
give cash to the person who brings the cheque. The words ‘…or bearer’ should not be crossed
out. Also, you should put the NGO’s stamp and sign on the reverse of the cheque.

14
Bearer cheque
A bearer cheque can be paid to the person who brings the cheque to the bank. For example, the
cheque can be paid to Mr. X or to the person who ‘bears’ the cheque to the bank. The cheque can
now be paid to Mr. X was only. For this, he may have to go personally.

Or he can deposit the cheque in his own bank account. If he goes personally, the bank will
normally ask for some proof of identity (driving license, identity card, etc.).

Crossed cheque
A cheque with two small parallel lines is a crossed cheque. You cannot encash such a cheque
across the counter. It will only be credited to a bank account. Such a cheque has to go through
clearing.

Another way of classifying cheques is-

Electronic Cheque: A cheque in electronic form is known as electronic cheque.

Truncated Cheque: A cheque in paper form is known as truncated cheque.

Bill of Exchange and Promissory Note

Distinction Between Bill of Exchange and Promissory Note

1. Number of parties: In a promissory note there are only two parties – the maker (debtor) and
the payee (creditor). In a bill of exchange, there are three parties; drawer, drawee and payee;
although any two out of the three may be filled by one and the same person,

2. Payment to the maker: A promissory note cannot be made payable the maker himself, while
in a bill of exchange to the drawer and payee or drawee and payee may be same person.

3. Unconditional promise: A promissory note contains an unconditional promise by the maker

to pay to the payee or his order, whereas in a bill of exchange, there is an unconditional order to
the drawee to pay according to the direction of the drawer.

4. Prior acceptance: A note is presented for payment without any prior acceptance by the
maker. A bill of exchange is payable after sight must be accepted by the drawee or someone else
on his behalf, before it can be presented for payment.

15
5. Primary or absolute liability: The liability of the maker of a promissory note is primary and
absolute, but the liability of the drawer of a bill of exchange is secondary and conditional.

6. Relation: The maker of the promissory note stands in immediate relation with the payee,
while the maker or drawer of an accepted bill stands in immediate relations with the acceptor and
not the payee.

7. Protest for dishonour: Foreign bill of exchange must be protested for dishonour when such
protest is required to be made by the law of the country where they are drawn, but no such
protest is needed in the case of a promissory note.

8. Notice of dishonour: When a bill is dishonoured, due notice of dishonour is to be given by the
holder to the drawer and the intermediate indorsers, but no such notice need be given in the case
of a note.

Bill of Exchange and Cheque

Distinction Between Bills of Exchange and Cheque

1. A bill of exchange is usually drawn on some person or firm, while a cheque is always drawn
on a bank.

2. It is essential that a bill of exchange must be accepted before its payment can be claimed A
cheque does not require any such acceptance.

3. A cheque can only be drawn payable on demand, a bill may be also drawn payable on
demand, or on the expiry of a certain period after date or sight.

4. A grace of three days is allowed in the case of time bills while no grace is given in the case of
a cheque.

5. The drawer of the bill is discharged from his liability, if it is not presented for payment, but the
drawer of a cheque is discharged only if he suffers any damage by delay in presenting the cheque
for payment.

16
6. Notice of dishonour of a bill is necessary, but no such notice is necessary in the case of
cheque.

7. A cheque may be crossed, but not needed in the case of bill.

8. A bill of exchange must be properly stamped, while a cheque does not require any stamp.

9. A cheque drawn to bearer payable on demand shall be valid but a bill payable on demand can
never be drawn to bearer.

10. Unlike cheques, the payment of a bill cannot be countermanded by the drawer.

Promissory Note and Cheque

Difference Between Cheque And Promissory Note

1) Promissory Note is a written promise made by one person to pay certain sum of money
due to another person or any other legal holder of the document. Whereas A cheque is an
unconditional order, in writing addressed by a customer, with signature, to the bank
requiring it to pay on demand a certain sum of money to the order of a specified person or
to the bearer.
2) There are two parties in the promissory note – the Maker and the Payee. Whereas in case
of cheque, there are three parties – the drawer, drawee and payee.
3) In case of Promissory Note, acceptance is not necessary but in case of cheque, acceptance
is required before it is presented for payment
4) Promissory note can never be conditional but cheque can be conditional
5) The maker of Promissory Note cannot pay to himself but in case of cheque, drawer can
be payee.
6) While a cheque is a one time payment, a promissory note is a promise made to pay back a
loan; either in installments or in one go at a later date.
7) Cheque is drawn on a bank whereas promissory note can be made by any individual in
favour of another person.

17
Conclusion
To conclude it can be said that there are a lot of differences between the three promissory notes,
bill of exchange and cheques, however all of them are a type of negotiable instruments and
Instruments so that a person need not carry cash to transfer or exchange money. They have a lot
of other similarities.

For example both bill of exchange and cheque are-

• Addressing the drawee to make payment.

• Always in writing.
• Signed by the drawer of the instrument.
• Express order to pay a certain amount

Along with the differences between bill of exchange and promissory note, there are a few
similarities like both the two instruments are not payable to the bearer on demand as per RBI
Act, 1934. Moreover, treatment of Bill of Exchange or Promissory Note is as under:

• Bills Receivable: The payee of the bill and note.

• Bills Payable: The drawer of the note and drawee of the bill

18
Bibliography
Books Referred
1) Banking Theory and Practice (1998) UBS Publisher Distributors Ltd.New Delhi.
2) Basu, A. Review of Current Banking Theory and Practice (1998) Mac millan
3) C. Goodhart, The Central Bank and the Financial System (1995); Macmillan, London
4) Ellinger's Modern Banking Law(Fourth Edition) [E. P. ELLINGER, Professor of Law,
National University of Singapore, EVA LOMNICKA, Professor of Law,King's College,
London and a practising barrister, and RICHARD HOOLEY, Professor of Law, King's
CollegeLondon and Fellow of Fitzwilliam College, Cambridge].
5) Information Technology Act, 2000.
6) J.Dermine (ed.), European Banking in the 1990s’ (1993) Blackwell, Oxford.
7) Janakiraman Committee Report on Securities Operation of Banks and Financial
Institution (1993
8) K. Subrahmanyan, Banking Reforms ainIndia (1997) Tata Maigraw Hill, New Delhi.
9) L.C. Goyle, The Law of Banking and Bankers (1995) Eastern
10) M. Dassesse, S. Isaacs and G. Pen, E.C. Banking Law, (1994) Lloyds of London Press,
London
11) M. Hapgood (ed.),Pagets’ Law of Banking (1989) Butterworths, London
12) M.A. Mir, The Law Relating to Bank Guarantee in India (1992), Metropolitan Book,
New Delhi.

Websites Referred:-
 www.manupatra.com
 www.jstor.com
 www.ssrn.co.in

19