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THE NEGOTIABLE INSTRUMENTS ACT, 1881

What is the short subject matter of the Negotiable Instruments Act, 1881?	It is an Act to define and amend the law relating to Promissory Notes, Bills of Exchange and Cheques.
What is the Act number of the Negotiable Instruments Act, 1881?	It is Act No. 26 of 1881.
On what date was the Negotiable Instruments Act, 1881 enacted?	It was enacted on 9th December, 1881.
What is the object of the Negotiable Instruments Act, 1881 as stated in the long title?	It is to define and amend the law relating to Promissory Notes, Bills of Exchange and Cheques.
What does the preamble state regarding the expediency of the Negotiable Instruments Act, 1881?	It states that it is expedient to define and amend the law relating to promissory notes, bills of exchange and cheques.

CHAPTER-I
PRELIMINARY
What is the subject matter of Section 1 of the Negotiable Instruments Act, 1881?	Section 1 deals with the short title, local extent, saving of usages relating to hundis, and commencement of the Act.
What may this Act be called under Section 1 of the Negotiable Instruments Act, 1881?	This Act may be called the Negotiable Instruments Act, 1881.
To what extent does the Negotiable Instruments Act, 1881 extend?	It extends to the whole of India.
What does the Negotiable Instruments Act, 1881 not affect notwithstanding its extension?	Nothing herein contained affects the Indian Paper Currency Act, 1871, section 21.
What local usages are saved under Section 1 of the Negotiable Instruments Act, 1881?	Any local usage relating to any instrument in an oriental language is saved.
What is the effect of the proviso to the saving of local usages relating to instruments in an oriental language?	Such usages may be excluded by any words in the body of the instrument indicating an intention that the legal relations of the parties shall be governed by this Act.
How may local usages relating to instruments in an oriental language be excluded under Section 1?	They may be excluded by words in the body of the instrument indicating an intention that the legal relations of the parties shall be governed by this Act.
What must the words in the body of the instrument indicate to exclude local usage under Section 1?	They must indicate an intention that the legal relations of the parties thereto shall be governed by this Act.
When did the Negotiable Instruments Act, 1881 come into force?	It came into force on the first day of March, 1882.
What is the subject matter of Section 2 of the Negotiable Instruments Act, 1881?	Section 2 dealt with repeal of enactments.
What is the present status of Section 2 of the Negotiable Instruments Act, 1881?	Section 2 has been repealed by the Repealing and Amending Act, 1891 (12 of 1891), section 2 and Schedule I.
What is the subject matter of Section 3 of the Negotiable Instruments Act, 1881?	Section 3 is the interpretation clause.
What does the term “banker” include under Section 3 of the Negotiable Instruments Act, 1881?	“Banker” includes any person acting as a banker and any post office savings bank.

CHAPTER-II
OF NOTES, BILLS AND CHEQUES
What is the subject matter of Section 4 of the Negotiable Instruments Act, 1881?	Section 4 defines a promissory note.
What is a “promissory note” under Section 4 of the Negotiable Instruments Act, 1881?	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.
Is a promissory note required to be in writing under Section 4?	Yes, a promissory note must be an instrument in writing.
Can a bank-note or currency-note be a promissory note under Section 4?	No, a bank-note or a currency-note is not a promissory note.
What type of undertaking must a promissory note contain under Section 4?	It must contain an unconditional undertaking.
Who must sign a promissory note under Section 4?	The maker must sign the promissory note.
What must be the subject matter of payment in a promissory note under Section 4?	It must be a certain sum of money only.
To whom may payment be directed in a promissory note under Section 4?	It may be directed to, or to the order of, a certain person, or to the bearer of the instrument.
Must a promissory note be payable in money only under Section 4?	Yes, it must be payable in a certain sum of money only.
Is the instrument “I promise to pay B or order Rs. 500” a promissory note?	Yes, the instrument marked (a) is a promissory note.
Is the instrument “I acknowledge myself to be indebted to B in Rs. 1,000, to be paid on demand, for value received” a promissory note?	Yes, the instrument marked (b) is a promissory note.
Is the instrument “Mr. B, I O U Rs. 1,000” a promissory note?	No, the instrument marked (c) is not a promissory note.
Is the instrument “I promise to pay B Rs. 500 and all other sums which shall be due to him” a promissory note?	No, the instrument marked (d) is not a promissory note.
Is the instrument “I promise to pay B Rs. 500, first deducting thereout any money which he may owe me” a promissory note?	No, the instrument marked (e) is not a promissory note.
Is the instrument “I promise to pay B Rs. 500 seven days after my marriage with C” a promissory note?	No, the instrument marked (f) is not a promissory note.
Is the instrument “I promise to pay B Rs. 500 on D's death, provided D leaves me enough to pay that sum” a promissory note?	No, the instrument marked (g) is not a promissory note.
Is the instrument “I promise to pay B Rs. 500 and to deliver to him my black horse on 1st January next” a promissory note?	No, the instrument marked (h) is not a promissory note.
What is the subject matter of Section 5 of the Negotiable Instruments Act, 1881?	Section 5 defines a bill of exchange.
What is a “bill of exchange” under Section 5 of the Negotiable Instruments Act, 1881?	A bill of exchange is 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.
Is a bill of exchange required to be in writing under Section 5?	Yes, a bill of exchange must be an instrument in writing.
What type of order must a bill of exchange contain under Section 5?	It must contain an unconditional order.
Who must sign a bill of exchange under Section 5?	The maker must sign the bill of exchange.
Whom does the maker direct in a bill of exchange under Section 5?	The maker directs a certain person to pay.
What must be the subject matter of payment in a bill of exchange under Section 5?	It must be a certain sum of money only.
To whom may payment be made under a bill of exchange under Section 5?	Payment may be made to, or to the order of, a certain person or to the bearer of the instrument.
When is a promise or order to pay not regarded as “conditional” under Sections 4 and 5?	It is not conditional merely because the time for payment of the amount or any instalment is expressed to be on the lapse of a certain period after the occurrence of a specified event which, according to the ordinary expectation of mankind, is certain to happen, though the time of its happening may be uncertain.
Does uncertainty as to the time of happening of a specified event make a promise or order conditional under Sections 4 and 5 if the event is certain to happen?	No, if the event is certain to happen according to the ordinary expectation of mankind, the promise or order is not conditional though the time of happening may be uncertain.
Can payment after the lapse of a certain period from a specified event still be unconditional under Sections 4 and 5?	Yes, if the specified event is certain to happen according to the ordinary expectation of mankind.
When may the sum payable be “certain” under Sections 4 and 5 despite future interest?	The sum payable may be certain although it includes future interest.
Can the sum payable be “certain” under Sections 4 and 5 if it is payable at an indicated rate of exchange?	Yes, the sum payable may be certain although it is payable at an indicated rate of exchange.
Can the sum payable be “certain” under Sections 4 and 5 if it is according to the course of exchange?	Yes, the sum payable may be certain although it is according to the course of exchange.
Can the sum payable be “certain” under Sections 4 and 5 if the instrument provides that on default of an instalment the balance unpaid shall become due?	Yes, the sum payable may be certain although the instrument so provides.
When may the payee be a “certain person” under Sections 4 and 5 despite misnaming?	The person may be a certain person although he is mis-named, if it is clear that the direction is given to him or that payment is to be made to him.
Can a person designated by description only be a “certain person” under Sections 4 and 5?	Yes, if it is clear that the direction is given or that payment is to be made to him, he may be a certain person though designated by description only.
What is the subject matter of Section 6 of the Negotiable Instruments Act, 1881?	Section 6 defines a cheque.
What is a “cheque” under Section 6 of the Negotiable Instruments Act, 1881?	A cheque is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand.
What are the essential requirements of a cheque under Section 6?	A cheque must be a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand.
Can a cheque be expressed to be payable otherwise than on demand under Section 6?	No, a cheque must not be expressed to be payable otherwise than on demand.
What is included within the definition of “cheque” under Section 6?	It includes the electronic image of a truncated cheque and a cheque in the electronic form.
Does the definition of cheque include the electronic image of a truncated cheque under Section 6?	Yes, it includes the electronic image of a truncated cheque.
Does the definition of cheque include a cheque in the electronic form under Section 6?	Yes, it includes a cheque in the electronic form.
What is the subject matter of Explanation I to Section 6 of the Negotiable Instruments Act, 1881?	Explanation I defines the expressions “a cheque in the electronic form” and “a truncated cheque”.
What does “a cheque in the electronic form” mean under Explanation I(a) to Section 6?	It means a cheque drawn in electronic form by using any computer resource and signed in a secure system with digital signature (with or without biometrics signature) and asymmetric crypto system or with electronic signature, as the case may be.
How is a cheque in the electronic form drawn under Explanation I(a) to Section 6?	It is drawn in electronic form by using any computer resource.
How must a cheque in the electronic form be signed under Explanation I(a) to Section 6?	It must be signed in a secure system with digital signature (with or without biometrics signature) and asymmetric crypto system or with electronic signature, as the case may be.
Can a cheque in the electronic form be signed with digital signature under Explanation I(a) to Section 6?	Yes, it may be signed with digital signature in a secure system.
Can a cheque in the electronic form be signed with biometrics signature under Explanation I(a) to Section 6?	Yes, it may be signed with digital signature with or without biometrics signature in a secure system.
Can a cheque in the electronic form be signed with electronic signature under Explanation I(a) to Section 6?	Yes, it may be signed with electronic signature, as the case may be.
What does “a truncated cheque” mean under Explanation I(b) to Section 6?	It means a cheque which is truncated during the course of a clearing cycle, either by the clearing house or by the bank whether paying or receiving payment, immediately on generation of an electronic image for transmission, substituting the further physical movement of the cheque in writing.
When is a cheque treated as a truncated cheque under Explanation I(b) to Section 6?	When it is truncated during the course of a clearing cycle immediately on generation of an electronic image for transmission, substituting the further physical movement of the cheque in writing.
Who may truncate a cheque under Explanation I(b) to Section 6?	The clearing house or the bank, whether paying or receiving payment, may truncate the cheque.
At what stage may a cheque be truncated under Explanation I(b) to Section 6?	It may be truncated during the course of a clearing cycle.
What substitutes the further physical movement of the cheque in writing in a truncated cheque under Explanation I(b) to Section 6?	The generation of an electronic image for transmission substitutes the further physical movement of the cheque in writing.
What is the subject matter of Explanation II to Section 6 of the Negotiable Instruments Act, 1881?	Explanation II defines the expression “clearing house”.
What does “clearing house” mean under Explanation II to Section 6?	It means the clearing house managed by the Reserve Bank of India or a clearing house recognised as such by the Reserve Bank of India.
Which clearing house is included under Explanation II to Section 6?	The clearing house managed by the Reserve Bank of India is included.
Can a clearing house recognised by the Reserve Bank of India be a “clearing house” under Explanation II to Section 6?	Yes, a clearing house recognised as such by the Reserve Bank of India is a clearing house.
What is the subject matter of Explanation III to Section 6 of the Negotiable Instruments Act, 1881?	Explanation III adopts the meanings of certain expressions from the Information Technology Act, 2000.
Which expressions under Explanation III to Section 6 have the same meanings as in the Information Technology Act, 2000?	“Asymmetric crypto system”, “computer resource”, “digital signature”, “electronic form” and “electronic signature”.
From which Act are the meanings of “asymmetric crypto system”, “computer resource”, “digital signature”, “electronic form” and “electronic signature” borrowed under Explanation III to Section 6?	They have the same meanings respectively assigned to them in the Information Technology Act, 2000 (21 of 2000).
What is the subject matter of Section 7 of the Negotiable Instruments Act, 1881?	Section 7 defines drawer, drawee, drawee in case of need, acceptor, acceptor for honour and payee.
Who is called the “drawer” under Section 7 of the Negotiable Instruments Act, 1881?	The maker of a bill of exchange or cheque is called the drawer.
Who is the “drawer” in relation to a cheque under Section 7?	The maker of the cheque is the drawer.
Who is called the “drawee” under Section 7 of the Negotiable Instruments Act, 1881?	The person thereby directed to pay is called the drawee.
Who is the “drawee” in a bill of exchange or cheque under Section 7?	The person directed by the instrument to pay is the drawee.
Who is called the “drawee in case of need” under Section 7?	When in the bill or in any indorsement thereon the name of any person is given in addition to the drawee to be resorted to in case of need, such person is called a drawee in case of need.
When does a person become a “drawee in case of need” under Section 7?	When his name is given in the bill or in any indorsement thereon in addition to the drawee to be resorted to in case of need.
Where may the name of a drawee in case of need appear under Section 7?	It may appear in the bill or in any indorsement thereon.
Who is called the “acceptor” under Section 7 of the Negotiable Instruments Act, 1881?	After the drawee of a bill has signed his assent upon the bill, or if there are more parts than one upon one of such parts, and delivered the same, or given notice of such signing to the holder or to some person on his behalf, he is called the acceptor.
When does the drawee of a bill become an “acceptor” under Section 7?	He becomes an acceptor after signing his assent upon the bill or one of its parts, and delivering the same, or giving notice of such signing to the holder or to some person on his behalf.
If a bill has more than one part, on how many parts must the drawee sign to become an acceptor under Section 7?	He must sign his assent upon one of such parts.
To whom may notice of signing be given for the drawee to become an acceptor under Section 7?	It may be given to the holder or to some person on his behalf.
Who is called the “acceptor for honour” under Section 7 of the Negotiable Instruments Act, 1881?	When a bill of exchange has been noted or protested for non-acceptance or for better security, and any person accepts it supra protest for honour of the drawer or of any one of the indorsers, such person is called an acceptor for honour.
What is the condition precedent for an “acceptor for honour” under Section 7?	The bill of exchange must have been noted or protested for non-acceptance or for better security.
For whose honour may a person accept a bill supra protest under Section 7?	He may accept it for honour of the drawer or of any one of the indorsers.
What does acceptance “supra protest” lead to under Section 7?	It makes the person accepting it an acceptor for honour.
Who is called the “payee” under Section 7 of the Negotiable Instruments Act, 1881?	The person named in the instrument, to whom or to whose order the money is by the instrument directed to be paid, is called the payee.
What are the essentials of a “payee” under Section 7?	The payee is the person named in the instrument to whom or to whose order the money is directed to be paid.
Must the payee be named in the instrument under Section 7?	Yes, the payee is the person named in the instrument.
What is the subject matter of Section 8 of the Negotiable Instruments Act, 1881?	Section 8 defines “holder”.
Who is a “holder” under Section 8 of the Negotiable Instruments Act, 1881?	The holder of a promissory note, bill of exchange or cheque means any person entitled in his own name to the possession thereof and to receive or recover the amount due thereon from the parties thereto.
What are the essential requirements of a “holder” under Section 8?	He must be entitled in his own name to the possession of the instrument and to receive or recover the amount due thereon from the parties thereto.
Must a holder be entitled in his own name under Section 8?	Yes, the holder must be entitled in his own name.
Must a holder be entitled to possession of the instrument under Section 8?	Yes, the holder must be entitled to the possession thereof.
Must a holder be entitled to receive or recover the amount due under Section 8?	Yes, the holder must be entitled to receive or recover the amount due thereon from the parties thereto.
Who is the holder when a note, bill or cheque is lost or destroyed under Section 8?	The holder is the person so entitled at the time of such loss or destruction.
What is the subject matter of Section 9 of the Negotiable Instruments Act, 1881?	Section 9 defines “holder in due course”.
Who is a “holder in due course” under Section 9 of the Negotiable Instruments Act, 1881?	A holder in due course means any person who for consideration became the possessor of a promissory note, bill of exchange or cheque if payable to bearer, or the payee or indorsee thereof if payable to order, before the amount mentioned in it became payable, and without having sufficient cause to believe that any defect existed in the title of the person from whom he derived his title.
What is the first essential of a “holder in due course” under Section 9?	He must have become the possessor or payee or indorsee for consideration.
Can a person be a holder in due course without consideration under Section 9?	No, he must become the possessor, payee or indorsee for consideration.
Who can be a holder in due course of a bearer instrument under Section 9?	Any person who for consideration became the possessor of a promissory note, bill of exchange or cheque payable to bearer.
Who can be a holder in due course of an order instrument under Section 9?	The payee or indorsee who for consideration became such if the instrument is payable to order.
At what time must a person acquire the instrument to become a holder in due course under Section 9?	He must acquire it before the amount mentioned in it became payable.
Can a person who acquires the instrument after maturity be a holder in due course under Section 9?	No, he must acquire it before the amount mentioned in it became payable.
What is the good faith requirement for a holder in due course under Section 9?	He must acquire the instrument without having sufficient cause to believe that any defect existed in the title of the person from whom he derived his title.
What defect-related condition disqualifies a person from being a holder in due course under Section 9?	Having sufficient cause to believe that any defect existed in the title of the transferor disqualifies him.
What is the subject matter of Section 10 of the Negotiable Instruments Act, 1881?	Section 10 defines “payment in due course”.
What is “payment in due course” under Section 10 of the Negotiable Instruments Act, 1881?	Payment in due course means payment in accordance with the apparent tenor of the instrument in good faith and without negligence to any person in possession thereof under circumstances which do not afford a reasonable ground for believing that he is not entitled to receive payment of the amount therein mentioned.
What is the first requirement of “payment in due course” under Section 10?	Payment must be in accordance with the apparent tenor of the instrument.
What is the good faith requirement for “payment in due course” under Section 10?	Payment must be made in good faith.
What is the negligence requirement for “payment in due course” under Section 10?	Payment must be made without negligence.
To whom must payment be made for “payment in due course” under Section 10?	It must be made to any person in possession thereof under circumstances which do not afford a reasonable ground for believing that he is not entitled to receive payment.
When is payment not “payment in due course” under Section 10?	When circumstances afford a reasonable ground for believing that the person in possession is not entitled to receive payment of the amount therein mentioned.
What is the subject matter of Section 11 of the Negotiable Instruments Act, 1881?	Section 11 defines an inland instrument.
When is a promissory note, bill of exchange or cheque deemed to be an inland instrument under Section 11?	When it is drawn or made in India and made payable in, or drawn upon any person resident in, India.
What is the first territorial requirement for an inland instrument under Section 11?	The promissory note, bill of exchange or cheque must be drawn or made in India.
What is the second territorial requirement for an inland instrument under Section 11?	It must be made payable in India or drawn upon any person resident in India.
Can an instrument be an inland instrument if drawn in India and drawn upon a person resident in India under Section 11?	Yes, it shall be deemed to be an inland instrument.
Can an instrument be an inland instrument if drawn in India and made payable in India under Section 11?	Yes, it shall be deemed to be an inland instrument.
What is the subject matter of Section 12 of the Negotiable Instruments Act, 1881?	Section 12 defines a foreign instrument.
When is an instrument deemed to be a foreign instrument under Section 12?	Any such instrument not so drawn, made or made payable shall be deemed to be a foreign instrument.
What is a foreign instrument under Section 12 in relation to Section 11?	Any promissory note, bill of exchange or cheque not fulfilling the conditions of an inland instrument is a foreign instrument.
What is the subject matter of Section 13 of the Negotiable Instruments Act, 1881?	Section 13 defines “negotiable instrument” and states modes of payability.
What is a “negotiable instrument” under Section 13(1) of the Negotiable Instruments Act, 1881?	A negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer.
Which instruments are negotiable instruments under Section 13(1)?	A promissory note, bill of exchange or cheque payable either to order or to bearer.
Can a promissory note, bill of exchange or cheque payable to order be a negotiable instrument under Section 13(1)?	Yes, if payable to order, it is a negotiable instrument.
Can a promissory note, bill of exchange or cheque payable to bearer be a negotiable instrument under Section 13(1)?	Yes, if payable to bearer, it is a negotiable instrument.
What is the subject matter of Explanation (i) to Section 13(1) of the Negotiable Instruments Act, 1881?	Explanation (i) defines when an instrument is payable to order.
When is a promissory note, bill of exchange or cheque payable to order under Explanation (i) to Section 13(1)?	It is payable to order when it is expressed to be so payable or 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.
Can an instrument expressed to be payable to a particular person be payable to order under Explanation (i) to Section 13(1)?	Yes, if it does not contain words prohibiting transfer or indicating an intention that it shall not be transferable.
When is an instrument not payable to order under Explanation (i) to Section 13(1)?	When it contains words prohibiting transfer or indicating an intention that it shall not be transferable.
What is the subject matter of Explanation (ii) to Section 13(1) of the Negotiable Instruments Act, 1881?	Explanation (ii) defines when an instrument is payable to bearer.
When is a promissory note, bill of exchange or cheque payable to bearer under Explanation (ii) to Section 13(1)?	It is payable to bearer when it is expressed to be so payable or when the only or last indorsement on it is an indorsement in blank.
Can an instrument become payable to bearer by indorsement under Explanation (ii) to Section 13(1)?	Yes, if the only or last indorsement is an indorsement in blank.
What is the subject matter of Explanation (iii) to Section 13(1) of the Negotiable Instruments Act, 1881?	Explanation (iii) deals with instruments expressed to be payable to the order of a specified person and not to him or his order.
What is the effect of Explanation (iii) to Section 13(1) when an instrument is expressed to be payable to the order of a specified person and not to him or his order?	It is nevertheless payable to him or his order at his option.
Does the omission of the words “or his order” after the name of a specified person prevent negotiability under Explanation (iii) to Section 13(1)?	No, it is nevertheless payable to him or his order at his option.
What is the subject matter of Section 13(2) of the Negotiable Instruments Act, 1881?	Section 13(2) deals with negotiable instruments payable to multiple payees.
Can a negotiable instrument be made payable to two or more payees jointly under Section 13(2)?	Yes, a negotiable instrument may be made payable to two or more payees jointly.
Can a negotiable instrument be made payable in the alternative under Section 13(2)?	Yes, it may be made payable in the alternative to one of two payees.
Can a negotiable instrument be made payable to one or some of several payees under Section 13(2)?	Yes, it may be made payable to one or some of several payees.
What is the subject matter of Section 14 of the Negotiable Instruments Act, 1881?	Section 14 defines negotiation.
When is a promissory note, bill of exchange or cheque said to be negotiated under Section 14?	When it is transferred to any person so as to constitute that person the holder thereof.
What is the essential requirement of negotiation under Section 14?	The instrument must be transferred so as to constitute the transferee the holder thereof.
Does mere transfer amount to negotiation under Section 14?	No, the transfer must be such as to constitute the transferee the holder thereof.
What is the subject matter of Section 15 of the Negotiable Instruments Act, 1881?	Section 15 defines indorsement and indorser.
When is a person said to indorse a negotiable instrument under Section 15?	When the maker or holder signs the instrument, otherwise than as such maker, for the purpose of negotiation, on the back or face thereof or on a slip of paper annexed thereto, or so signs for the same purpose a stamped paper intended to be completed as a negotiable instrument.
Who can indorse a negotiable instrument under Section 15?	The maker or holder may indorse a negotiable instrument.
How must the maker or holder sign to constitute indorsement under Section 15?	He must sign the instrument otherwise than as such maker for the purpose of negotiation.
For what purpose must the signature be made under Section 15?	It must be made for the purpose of negotiation.
Where may a negotiable instrument be signed for indorsement under Section 15?	It may be signed on the back or face thereof or on a slip of paper annexed thereto.
Can signing on the face of the instrument amount to indorsement under Section 15?	Yes, signing on the face thereof for the purpose of negotiation amounts to indorsement.
Can signing on a slip of paper annexed to the instrument amount to indorsement under Section 15?	Yes, signing on a slip of paper annexed thereto for the purpose of negotiation amounts to indorsement.
Can a stamped paper intended to be completed as a negotiable instrument be indorsed under Section 15?	Yes, if signed for the purpose of negotiation, a stamped paper intended to be completed as a negotiable instrument may be indorsed.
Who is called the “indorser” under Section 15?	The person who so indorses the instrument is called the indorser.
What is the subject matter of Section 16 of the Negotiable Instruments Act, 1881?	Section 16 defines indorsement in blank, indorsement in full, indorsee, and applies provisions relating to payee to indorsee.
When is an indorsement said to be “in blank” under Section 16(1)?	If the indorser signs his name only, the indorsement is said to be in blank.
What is an indorsement “in blank” under Section 16(1)?	An indorsement in which the indorser signs his name only.
When is an indorsement said to be “in full” under Section 16(1)?	If the indorser adds a direction to pay the amount mentioned in the instrument to, or to the order of, a specified person, the indorsement is said to be in full.
What is an indorsement “in full” under Section 16(1)?	An indorsement in which the indorser adds a direction to pay the amount mentioned in the instrument to, or to the order of, a specified person.
Who is called the “indorsee” under Section 16(1)?	The person specified in an indorsement in full is called the indorsee of the instrument.
Who becomes the indorsee under an indorsement in full under Section 16(1)?	The specified person to whom or to whose order payment is directed becomes the indorsee.
What is the subject matter of Section 16(2) of the Negotiable Instruments Act, 1881?	Section 16(2) applies provisions relating to a payee to an indorsee with necessary modifications.
Do provisions relating to a payee apply to an indorsee under Section 16(2)?	Yes, they apply with the necessary modifications.
What is the subject matter of Section 17 of the Negotiable Instruments Act, 1881?	Section 17 deals with ambiguous instruments.
What is an ambiguous instrument under Section 17 of the Negotiable Instruments Act, 1881?	It is an instrument which may be construed either as a promissory note or bill of exchange.
What option does the holder have in case of an ambiguous instrument under Section 17?	The holder may at his election treat it as either a promissory note or a bill of exchange.
Who has the election in respect of an ambiguous instrument under Section 17?	The holder has the election.
What is the effect of the holder’s election under Section 17?	The instrument shall thenceforward be treated accordingly.
Once the holder elects to treat an ambiguous instrument as one class under Section 17, how is it treated thereafter?	It shall thenceforward be treated accordingly.
What is the subject matter of Section 18 of the Negotiable Instruments Act, 1881?	Section 18 deals with instruments where amount is stated differently in figures and words.
What is the rule when the amount is stated differently in figures and words under Section 18?	The amount stated in words shall be the amount undertaken or ordered to be paid.
Which amount prevails under Section 18 when figures and words differ?	The amount stated in words prevails.
Does the amount stated in figures control over words under Section 18?	No, the amount stated in words controls.
What is the subject matter of Section 19 of the Negotiable Instruments Act, 1881?	Section 19 deals with instruments payable on demand.
When is a promissory note payable on demand under Section 19?	A promissory note in which no time for payment is specified is payable on demand.
When is a bill of exchange payable on demand under Section 19?	A bill of exchange in which no time for payment is specified is payable on demand.
Are cheques payable on demand under Section 19?	Yes, a cheque is payable on demand.
What is the rule regarding time specification under Section 19 for promissory notes and bills of exchange?	If no time for payment is specified, they are payable on demand.
What is the subject matter of Section 20 of the Negotiable Instruments Act, 1881?	Section 20 deals with inchoate stamped instruments.
When does Section 20 apply to an inchoate stamped instrument?	When one person signs and delivers to another a paper stamped in accordance with the law relating to negotiable instruments then in force in India, and either wholly blank or having written thereon an incomplete negotiable instrument.
What are the conditions for an inchoate stamped instrument under Section 20?	The paper must be stamped in accordance with the law in force in India, signed and delivered by one person to another, and be either wholly blank or contain an incomplete negotiable instrument.
What authority is conferred by signing and delivering an inchoate stamped instrument under Section 20?	It gives prima facie authority to the holder to make or complete upon it a negotiable instrument for any amount specified therein and not exceeding the amount covered by the stamp.
To whom is prima facie authority given under Section 20?	It is given to the holder thereof.
What may the holder do under Section 20 with an inchoate stamped instrument?	The holder may make or complete, as the case may be, upon it a negotiable instrument.
For what amount may an inchoate stamped instrument be completed under Section 20?	For any amount specified therein and not exceeding the amount covered by the stamp.
Can the holder fill an amount exceeding the amount covered by the stamp under Section 20?	No, the amount must not exceed the amount covered by the stamp.
What is the liability of the person signing an inchoate stamped instrument under Section 20?	He shall be liable upon such instrument, in the capacity in which he signed the same, to any holder in due course for such amount.
In what capacity is the signer liable under Section 20?	He is liable in the capacity in which he signed the instrument.
To whom is the signer of an inchoate stamped instrument liable under Section 20?	He is liable to any holder in due course.
What is the proviso to Section 20 regarding persons other than a holder in due course?	No person other than a holder in due course shall recover from the person delivering the instrument anything in excess of the amount intended by him to be paid thereunder.
Can a person other than a holder in due course recover beyond the intended amount under Section 20?	No, he cannot recover anything in excess of the amount intended by the signer to be paid thereunder.
What is the subject matter of Section 21 of the Negotiable Instruments Act, 1881?	Section 21 defines the expressions “at sight”, “on presentment” and “after sight”.
What do the expressions “at sight” and “on presentment” mean in a promissory note or bill of exchange under Section 21?	They mean on demand.
What does the expression “after sight” mean in a promissory note under Section 21?	In a promissory note, it means after presentment for sight.
What does the expression “after sight” mean in a bill of exchange under Section 21?	In a bill of exchange, it means after acceptance, or noting for non-acceptance, or protest for non-acceptance.
What events may constitute “after sight” in a bill of exchange under Section 21?	Acceptance, noting for non-acceptance, or protest for non-acceptance.
What is the subject matter of Section 22 of the Negotiable Instruments Act, 1881?	Section 22 defines maturity and days of grace.
What is the “maturity” of a promissory note or bill of exchange under Section 22?	The maturity is the date at which it falls due.
What are “days of grace” under Section 22 in relation to promissory notes and bills of exchange?	Every promissory note or bill of exchange not expressed to be payable on demand, at sight or on presentment is at maturity on the third day after the day on which it is expressed to be payable.
Which instruments are entitled to days of grace under Section 22?	Every promissory note or bill of exchange not expressed to be payable on demand, at sight or on presentment.
Are instruments payable on demand entitled to days of grace under Section 22?	No, instruments payable on demand are not entitled to days of grace.
Are instruments payable at sight entitled to days of grace under Section 22?	No, instruments payable at sight are not entitled to days of grace.
Are instruments payable on presentment entitled to days of grace under Section 22?	No, instruments payable on presentment are not entitled to days of grace.
On which day does an instrument with days of grace mature under Section 22?	It matures on the third day after the day on which it is expressed to be payable.
What is the subject matter of Section 23 of the Negotiable Instruments Act, 1881?	Section 23 deals with calculating maturity of a bill or note payable so many months after date or sight.
How is the date of maturity calculated under Section 23 for a promissory note or bill of exchange payable a stated number of months after date, after sight, or after a certain event?	The period stated shall be held to terminate on the day of the month which corresponds with the day on which the instrument is dated, or presented for acceptance or sight, or noted for non-acceptance, or protested for non-acceptance, or the event happens, as the case may be.
To which instruments does Section 23 apply?	It applies to a promissory note or bill of exchange made payable a stated number of months after date or after sight or after a certain event.
What is the starting point for calculating maturity under Section 23 when the instrument is payable after date?	The period is reckoned with reference to the day on which the instrument is dated.
What is the starting point for calculating maturity under Section 23 when the instrument is payable after sight?	The period is reckoned with reference to the day on which the instrument is presented for acceptance or sight.
What is the starting point for calculating maturity under Section 23 when the bill is noted for non-acceptance?	The period is reckoned with reference to the day on which it is noted for non-acceptance.
What is the starting point for calculating maturity under Section 23 when the bill is protested for non-acceptance?	The period is reckoned with reference to the day on which it is protested for non-acceptance.
What is the starting point for calculating maturity under Section 23 when the instrument is payable after a certain event?	The period is reckoned with reference to the day on which the event happens.
What is the rule under Section 23 when a bill of exchange payable a stated number of months after sight has been accepted for honour?	The period shall be held to terminate with reference to the day on which it was so accepted.
In case of acceptance for honour, with which day is the period reckoned under Section 23?	It is reckoned with the day on which the bill was accepted for honour.
What is the rule under Section 23 if the month in which the period would terminate has no corresponding day?	The period shall be held to terminate on the last day of such month.
What happens under Section 23 if there is no corresponding day in the terminal month?	The period terminates on the last day of that month.
How is a negotiable instrument dated 29th January, 1878 and payable one month after date treated under Illustration (a) to Section 23?	It is at maturity on the third day after 28th February, 1878.
How is a negotiable instrument dated 30th August, 1878 and payable three months after date treated under Illustration (b) to Section 23?	It is at maturity on 3rd December, 1878.
How is a promissory note or bill of exchange dated 31st August, 1878 and payable three months after date treated under Illustration (c) to Section 23?	It is at maturity on 3rd December, 1878.
What is the subject matter of Section 24 of the Negotiable Instruments Act, 1881?	Section 24 deals with calculating maturity of a bill or note payable so many days after date or sight.
How is the date of maturity calculated under Section 24 for a promissory note or bill of exchange payable a certain number of days after date, after sight, or after a certain event?	The day of the date, or of presentment for acceptance or sight, or of protest for non-acceptance, or on which the event happens, shall be excluded.
To which instruments does Section 24 apply?	It applies to a promissory note or bill of exchange made payable a certain number of days after date or after sight or after a certain event.
Is the day of the date included in calculating maturity under Section 24?	No, the day of the date shall be excluded.
Is the day of presentment for acceptance or sight included in calculating maturity under Section 24?	No, the day of presentment for acceptance or sight shall be excluded.
Is the day of protest for non-acceptance included in calculating maturity under Section 24?	No, the day of protest for non-acceptance shall be excluded.
Is the day on which the event happens included in calculating maturity under Section 24?	No, the day on which the event happens shall be excluded.
What is the subject matter of Section 25 of the Negotiable Instruments Act, 1881?	Section 25 deals with the day of maturity falling on a holiday.
What is the rule under Section 25 when the day of maturity of a promissory note or bill of exchange is a public holiday?	The instrument shall be deemed to be due on the next preceding business day.
When is an instrument deemed due if its maturity falls on a public holiday under Section 25?	It is deemed to be due on the next preceding business day.
Does Section 25 apply to promissory notes and bills of exchange whose day of maturity is a public holiday?	Yes, such instruments are deemed due on the next preceding business day.
What is the subject matter of the Explanation to Section 25 of the Negotiable Instruments Act, 1881?	The Explanation defines the expression “public holiday”.
What does the expression “public holiday” include under the Explanation to Section 25?	It includes Sundays and any other day declared by the Central Government, by notification in the Official Gazette, to be a public holiday.
Are Sundays included within “public holiday” under Section 25?	Yes, Sundays are included.
Who may declare any other day to be a public holiday under the Explanation to Section 25?	The Central Government may declare it by notification in the Official Gazette.
How may the Central Government declare a public holiday under Section 25?	By notification in the Official Gazette.

CHAPTER-III
PARTIES TO NOTES, BILLS AND CHEQUES
What is the subject matter of Section 26 of the Negotiable Instruments Act, 1881?	Section 26 deals with capacity to make, draw, accept, indorse, deliver and negotiate promissory notes, bills of exchange and cheques.
Who may bind himself and be bound by a promissory note, bill of exchange or cheque under Section 26?	Every person capable of contracting according to the law to which he is subject may bind himself and be bound.
What is the test of capacity under Section 26?	Capacity is determined according to the law to which the person is subject.
Which acts relating to negotiable instruments may a competent person do under Section 26?	He may bind himself and be bound by the making, drawing, acceptance, indorsement, delivery and negotiation of a promissory note, bill of exchange or cheque.
Can a person incapable of contracting bind himself by a negotiable instrument under Section 26?	No, only a person capable of contracting according to the law to which he is subject may do so.
What is the rule regarding a minor under Section 26 of the Negotiable Instruments Act, 1881?	A minor may draw, indorse, deliver and negotiate such instrument so as to bind all parties except himself.
Can a minor draw a promissory note, bill of exchange or cheque under Section 26?	Yes, a minor may draw such instrument so as to bind all parties except himself.
Can a minor indorse a negotiable instrument under Section 26?	Yes, a minor may indorse such instrument so as to bind all parties except himself.
Can a minor deliver and negotiate a negotiable instrument under Section 26?	Yes, a minor may deliver and negotiate such instrument so as to bind all parties except himself.
Is a minor personally bound by a negotiable instrument under Section 26?	No, a minor binds all parties except himself.
What is the rule regarding corporations under Section 26 of the Negotiable Instruments Act, 1881?	Nothing in this section shall be deemed to empower a corporation to make, indorse or accept such instruments except in cases in which, under the law for the time being in force, they are so empowered.
Does Section 26 itself empower a corporation to make, indorse or accept negotiable instruments?	No, except where under the law for the time being in force they are so empowered.
When can a corporation make, indorse or accept negotiable instruments under Section 26?	Only in cases in which, under the law for the time being in force, it is so empowered.
What is the subject matter of Section 27 of the Negotiable Instruments Act, 1881?	Section 27 deals with agency in relation to negotiable instruments.
Who may bind himself or be bound through an agent under Section 27?	Every person capable of binding himself or of being bound, as mentioned in section 26, may so bind himself or be bound by a duly authorized agent acting in his name.
What is the requirement for agency under Section 27?	The agent must be duly authorized and act in the principal’s name.
Can a person mentioned in Section 26 be bound by a duly authorized agent under Section 27?	Yes, he may be so bound by a duly authorized agent acting in his name.
Does a general authority to transact business and receive and discharge debts confer power to accept or indorse bills of exchange under Section 27?	No, such general authority does not confer upon an agent the power of accepting or indorsing bills of exchange so as to bind his principal.
What does a general authority to transact business and receive and discharge debts not include under Section 27?	It does not include power to accept or indorse bills of exchange so as to bind the principal.
Does authority to draw bills of exchange itself include authority to indorse under Section 27?	No, an authority to draw bills of exchange does not of itself import an authority to indorse.
What is the subject matter of Section 28 of the Negotiable Instruments Act, 1881?	Section 28 deals with liability of an agent signing a negotiable instrument.
When is an agent personally liable on a promissory note, bill of exchange or cheque under Section 28?	When he signs his name without indicating thereon that he signs as agent, or that he does not intend thereby to incur personal responsibility.
How can an agent avoid personal liability under Section 28?	By indicating on the instrument that he signs as agent or that he does not intend thereby to incur personal responsibility.
Is an agent personally liable if he signs without disclosing agency under Section 28?	Yes, he is liable personally on the instrument.
Is an agent personally liable if he does not indicate that he does not intend to incur personal responsibility under Section 28?	Yes, he is liable personally on the instrument.
What is the exception to the personal liability of an agent under Section 28?	He is not personally liable to those who induced him to sign upon the belief that the principal only would be held liable.
Who cannot hold the agent personally liable under Section 28?	Those who induced him to sign upon the belief that the principal only would be held liable.
What is the subject matter of Section 29 of the Negotiable Instruments Act, 1881?	Section 29 deals with liability of a legal representative signing.
When is a legal representative of a deceased person personally liable under Section 29?	When he signs his name to a promissory note, bill of exchange or cheque, he is liable personally thereon unless he expressly limits his liability to the extent of the assets received by him as such.
How can a legal representative avoid full personal liability under Section 29?	By expressly limiting his liability to the extent of the assets received by him as such.
Is a legal representative signing a negotiable instrument presumed personally liable under Section 29?	Yes, unless he expressly limits his liability to the extent of the assets received by him as such.
To what extent may a legal representative limit his liability under Section 29?	He may limit his liability to the extent of the assets received by him as such.
What is the subject matter of Section 30 of the Negotiable Instruments Act, 1881?	Section 30 deals with liability of the drawer.
When is the drawer of a bill of exchange bound under Section 30?	The drawer of a bill of exchange is bound, in case of dishonour by the drawee or acceptor thereof, to compensate the holder, provided due notice of dishonour has been given to, or received by, the drawer as hereinafter provided.
When is the drawer of a cheque bound under Section 30?	The drawer of a cheque is bound, in case of dishonour by the drawee or acceptor thereof, to compensate the holder, provided due notice of dishonour has been given to, or received by, the drawer as hereinafter provided.
What is the liability of the drawer upon dishonour under Section 30?	He is bound to compensate the holder.
What is the condition precedent to the drawer’s liability under Section 30?	Due notice of dishonour must have been given to, or received by, the drawer as hereinafter provided.
Is notice of dishonour necessary to fasten liability on the drawer under Section 30?	Yes, due notice of dishonour must have been given to, or received by, the drawer.
Who must be compensated by the drawer under Section 30?	The holder must be compensated.
What is the subject matter of Section 31 of the Negotiable Instruments Act, 1881?	Section 31 deals with liability of the drawee of a cheque.
When is the drawee of a cheque bound to pay under Section 31?	When he has sufficient funds of the drawer in his hands properly applicable to the payment of such cheque and is duly required so to do.
What are the conditions for liability of the drawee of a cheque under Section 31?	He must have sufficient funds of the drawer in his hands properly applicable to the payment of the cheque, and must be duly required to pay it.
Must the drawee have sufficient funds of the drawer for Section 31 to apply?	Yes, the drawee must have sufficient funds of the drawer in his hands properly applicable to the payment of the cheque.
What kind of funds must the drawee hold under Section 31?	He must have sufficient funds of the drawer in his hands properly applicable to the payment of such cheque.
What must the drawee do when duly required under Section 31?	He must pay the cheque.
What is the consequence of default by the drawee under Section 31?	He must compensate the drawer for any loss or damage caused by such default.
Who is entitled to compensation from the drawee on default under Section 31?	The drawer is entitled to compensation.
For what must the drawee compensate the drawer under Section 31?	For any loss or damage caused by such default.
What is the subject matter of Section 32 of the Negotiable Instruments Act, 1881?	Section 32 deals with liability of the maker of a note and acceptor of a bill.
What is the liability of the maker of a promissory note under Section 32?	In the absence of a contract to the contrary, the maker is bound to pay the amount thereof at maturity according to the apparent tenor of the note.
What is the liability of the acceptor before maturity of a bill of exchange under Section 32?	In the absence of a contract to the contrary, the acceptor before maturity is bound to pay the amount thereof at maturity according to the apparent tenor of the acceptance.
What is the liability of the acceptor of a bill of exchange at or after maturity under Section 32?	He is bound to pay the amount thereof to the holder on demand.
What is the effect of a contract to the contrary under Section 32?	In the presence of a contract to the contrary, the statutory liability under Section 32 may be displaced.
According to what standard must the maker of a note pay under Section 32?	He must pay according to the apparent tenor of the note.
According to what standard must the acceptor before maturity pay under Section 32?	He must pay according to the apparent tenor of the acceptance.
To whom must the acceptor of a bill at or after maturity pay under Section 32?	He must pay the holder on demand.
When must the maker of a promissory note pay under Section 32?	He must pay at maturity.
When must the acceptor before maturity of a bill pay under Section 32?	He must pay at maturity.
When must the acceptor at or after maturity of a bill pay under Section 32?	He must pay the holder on demand.
What is the consequence of default by the maker or acceptor under Section 32?	Such maker or acceptor is bound to compensate any party to the note or bill for any loss or damage sustained by him and caused by such default.
Who may claim compensation for default under Section 32?	Any party to the note or bill who sustained loss or damage caused by such default may claim compensation.
What must be shown for compensation under Section 32?	Loss or damage sustained by a party to the note or bill and caused by such default.
What is the subject matter of Section 33 of the Negotiable Instruments Act, 1881?	Section 33 deals with who alone can be an acceptor, except in case of need or for honour.
Who can bind himself by an acceptance under Section 33?	No person except the drawee of a bill of exchange, or all or some of several drawees, or a person named therein as a drawee in case of need, or an acceptor for honour, can bind himself by an acceptance.
Can any person other than the drawee bind himself by acceptance under Section 33?	No, except all or some of several drawees, a person named as drawee in case of need, or an acceptor for honour.
Can all or some of several drawees bind themselves by acceptance under Section 33?	Yes, all or some of several drawees may bind themselves by an acceptance.
Who is a permitted acceptor in case of need under Section 33?	A person named in the bill as a drawee in case of need may bind himself by an acceptance.
Can an acceptor for honour bind himself by acceptance under Section 33?	Yes, an acceptor for honour may bind himself by an acceptance.
What is the subject matter of Section 34 of the Negotiable Instruments Act, 1881?	Section 34 deals with acceptance by several drawees not being partners.
What is the rule under Section 34 where there are several drawees of a bill of exchange who are not partners?	Each of them can accept it for himself, but none of them can accept it for another without his authority.
Can each of several drawees who are not partners accept the bill for himself under Section 34?	Yes, each of them can accept it for himself.
Can one of several drawees not being partners accept for another without authority under Section 34?	No, none of them can accept it for another without his authority.
What is necessary for one of several drawees not being partners to accept for another under Section 34?	Authority of the other drawee is necessary.
What is the subject matter of Section 35 of the Negotiable Instruments Act, 1881?	Section 35 deals with liability of the indorser.
When is an indorser liable under the first paragraph of Section 35?	In the absence of a contract to the contrary, whoever indorses and delivers a negotiable instrument before maturity without expressly excluding or making conditional his own liability in such indorsement is bound to every subsequent holder, in case of dishonour by the drawee, acceptor or maker, to compensate such holder for any loss or damage caused by such dishonour, provided due notice of dishonour has been given to, or received by, such indorser.
What are the conditions for liability of an indorser under Section 35 before maturity?	The instrument must be indorsed and delivered before maturity, there must be no contract to the contrary, the indorser must not expressly exclude or make conditional his liability in the indorsement, the instrument must be dishonoured by the drawee, acceptor or maker, and due notice of dishonour must be given to or received by the indorser.
To whom is an indorser bound under Section 35?	He is bound to every subsequent holder.
For what is the indorser liable under Section 35?	He is liable to compensate the subsequent holder for any loss or damage caused by dishonour.
Can an indorser exclude or make conditional his liability under Section 35?	Yes, he may expressly exclude or make conditional his own liability in the indorsement.
Is due notice of dishonour necessary to charge an indorser under Section 35?	Yes, due notice of dishonour must have been given to, or received by, the indorser.
Who may dishonour the instrument for the purpose of Section 35?	The drawee, acceptor or maker may dishonour the instrument.
What is the liability of an indorser after dishonour under the second paragraph of Section 35?	Every indorser after dishonour is liable as upon an instrument payable on demand.
How is an indorser after dishonour treated under Section 35?	He is liable as upon an instrument payable on demand.
What is the subject matter of Section 36 of the Negotiable Instruments Act, 1881?	Section 36 deals with liability of prior parties to a holder in due course.
What is the rule under Section 36?	Every prior party to a negotiable instrument is liable thereon to a holder in due course until the instrument is duly satisfied.
Who is protected under Section 36?	A holder in due course is protected.
Are all prior parties liable to a holder in due course under Section 36?	Yes, every prior party is liable thereon to a holder in due course until the instrument is duly satisfied.
What is the subject matter of Section 37 of the Negotiable Instruments Act, 1881?	Section 37 deals with maker, drawer and acceptor as principals.
Who is the principal debtor in case of a promissory note under Section 37?	In the absence of a contract to the contrary, the maker of a promissory note is liable thereon as principal debtor.
Who is the principal debtor in case of a cheque under Section 37?	In the absence of a contract to the contrary, the maker of a cheque is liable thereon as principal debtor.
Who is the principal debtor in case of a bill of exchange before acceptance under Section 37?	In the absence of a contract to the contrary, the drawer of a bill of exchange until acceptance is liable thereon as principal debtor.
Who is the principal debtor in case of a bill of exchange after acceptance under Section 37?	In the absence of a contract to the contrary, the acceptor is liable thereon as principal debtor.
What is the liability of other parties under Section 37?	The other parties thereto are liable thereon as sureties for the maker, drawer or acceptor, as the case may be.
Can the rule in Section 37 be varied by agreement?	Yes, it applies in the absence of a contract to the contrary.
What is the subject matter of Section 38 of the Negotiable Instruments Act, 1881?	Section 38 deals with a prior party being principal in respect of each subsequent party.
What is the rule under Section 38?	As between the parties liable as sureties, each prior party is, in the absence of a contract to the contrary, also liable thereon as a principal debtor in respect of each subsequent party.
Between sureties, how is each prior party treated under Section 38?	Each prior party is treated as a principal debtor in respect of each subsequent party.
Can the rule under Section 38 be displaced by agreement?	Yes, it applies in the absence of a contract to the contrary.
In the illustration to Section 38, who is the principal debtor as between E and B?	As between E and B, B is the principal debtor, and A, C and D are his sureties.
In the illustration to Section 38, who are the sureties as between E and B?	As between E and B, A, C and D are B’s sureties.
In the illustration to Section 38, who is the principal debtor as between E and A?	As between E and A, A is the principal debtor, and C and D are his sureties.
In the illustration to Section 38, who are the sureties as between E and A?	As between E and A, C and D are A’s sureties.
In the illustration to Section 38, who is the principal debtor as between E and C?	As between E and C, C is the principal debtor and D is his surety.
In the illustration to Section 38, who is the surety as between E and C?	As between E and C, D is C’s surety.
What is the subject matter of Section 39 of the Negotiable Instruments Act, 1881?	Section 39 deals with suretyship.
What is the rule under Section 39 when the holder of an accepted bill of exchange enters into a contract with the acceptor which would discharge the other parties under Sections 134 or 135 of the Indian Contract Act, 1872?	The holder may expressly reserve his right to charge the other parties, and in such case they are not discharged.
When can other parties to an accepted bill avoid discharge under Section 39?	When the holder expressly reserves his right to charge the other parties despite entering into a contract with the acceptor which would otherwise discharge them under Sections 134 or 135 of the Indian Contract Act, 1872.
What kind of contract is contemplated under Section 39?	A contract between the holder of an accepted bill of exchange and the acceptor which, under Section 134 or 135 of the Indian Contract Act, 1872, would discharge the other parties.
Can the holder preserve rights against other parties under Section 39?	Yes, by expressly reserving his right to charge the other parties.
What is the effect of an express reservation under Section 39?	The other parties are not discharged.
Which provisions of the Indian Contract Act are referred to in Section 39?	Sections 134 and 135 of the Indian Contract Act, 1872.
What is the subject matter of Section 40 of the Negotiable Instruments Act, 1881?	Section 40 deals with discharge of indorser's liability.
When is an indorser discharged under Section 40?	Where the holder of a negotiable instrument, without the consent of the indorser, destroys or impairs the indorser’s remedy against a prior party, the indorser is discharged from liability to the holder to the same extent as if the instrument had been paid at maturity.
What is the condition for discharge of an indorser under Section 40?	The holder must, without the indorser’s consent, destroy or impair the indorser’s remedy against a prior party.
To what extent is the indorser discharged under Section 40?	He is discharged to the same extent as if the instrument had been paid at maturity.
Is consent of the indorser relevant under Section 40?	Yes, if the holder acts without the consent of the indorser, the indorser is discharged to the extent provided.
What is meant by the statutory consequence under Section 40 when the holder impairs the indorser’s remedy?	The indorser is discharged from liability to the holder as though the instrument had been paid at maturity.
In the illustration to Section 40, who is the holder of the bill?	A is the holder of the bill of exchange.
In the illustration to Section 40, to whose order was the bill made payable?	The bill was made payable to the order of B.
What is the first indorsement in the illustration to Section 40?	The first indorsement is “B”.
What is the second indorsement in the illustration to Section 40?	The second indorsement is “Peter Williams”.
What is the third indorsement in the illustration to Section 40?	The third indorsement is “Wright & Co.”
What is the fourth indorsement in the illustration to Section 40?	The fourth indorsement is “John Rozario”.
Against whom does A put the bill in suit in the illustration to Section 40?	A puts the bill in suit against John Rozario.
Which indorsements does A strike out without John Rozario’s consent in the illustration to Section 40?	A strikes out the indorsements by Peter Williams and Wright & Co.
What is the legal effect in the illustration to Section 40 after striking out the indorsements without consent?	A is not entitled to recover anything from John Rozario.
What is the subject matter of Section 41 of the Negotiable Instruments Act, 1881?	Section 41 deals with liability of an acceptor where the indorsement is forged.
Is an acceptor of a bill of exchange already indorsed relieved from liability merely because the indorsement is forged under Section 41?	No, if he knew or had reason to believe the indorsement to be forged when he accepted the bill.
What is the condition for fastening liability on the acceptor despite forged indorsement under Section 41?	The acceptor must have known or had reason to believe that the indorsement was forged when he accepted the bill.
When does forged indorsement not relieve the acceptor under Section 41?	When the acceptor knew or had reason to believe the indorsement to be forged at the time of acceptance.
Does knowledge or reason to believe forgery matter under Section 41?	Yes, such knowledge or reason to believe prevents the acceptor from being relieved of liability.
What is the subject matter of Section 42 of the Negotiable Instruments Act, 1881?	Section 42 deals with acceptance of a bill drawn in a fictitious name.
Is an acceptor of a bill drawn in a fictitious name relieved from liability merely because the drawer’s name is fictitious under Section 42?	No, he is not relieved from liability to any holder in due course if the bill is payable to the drawer’s order and the holder claims under an indorsement by the same hand as the drawer’s signature, purporting to be made by the drawer.
What are the conditions for liability under Section 42 where a bill is drawn in a fictitious name?	The bill must be drawn in a fictitious name, payable to the drawer’s order, the holder must be a holder in due course, and the claim must be under an indorsement by the same hand as the drawer’s signature purporting to be made by the drawer.
Who is protected under Section 42?	A holder in due course claiming under an indorsement by the same hand as the drawer’s signature, purporting to be made by the drawer.
Does fictitious name of the drawer by itself discharge the acceptor under Section 42?	No, the fictitious nature of the name does not by itself relieve the acceptor from liability in the circumstances mentioned.
What kind of indorsement is contemplated under Section 42?	An indorsement by the same hand as the drawer’s signature and purporting to be made by the drawer.
What is the subject matter of Section 43 of the Negotiable Instruments Act, 1881?	Section 43 deals with negotiable instruments made, drawn, accepted, indorsed or transferred without consideration or on failure of consideration.
What is the general rule under Section 43 regarding a negotiable instrument made, drawn, accepted, indorsed or transferred without consideration?	A negotiable instrument made, drawn, accepted, indorsed or transferred without consideration creates no obligation of payment between the parties to the transaction.
What is the rule under Section 43 where the consideration for a negotiable instrument fails?	A negotiable instrument made, drawn, accepted, indorsed or transferred for a consideration which fails creates no obligation of payment between the parties to the transaction.
Between whom does absence or failure of consideration negate liability under Section 43?	It creates no obligation of payment between the parties to the transaction.
What is the effect under Section 43 if a party to such instrument transfers it to a holder for consideration?	Such holder, and every subsequent holder deriving title from him, may recover the amount due on the instrument from the transferor for consideration or any prior party thereto.
Who can recover despite original absence or failure of consideration under Section 43?	A holder for consideration, and every subsequent holder deriving title from him, may recover.
From whom may a holder for consideration recover under Section 43?	He may recover from the transferor for consideration or any prior party thereto.
Does transfer with or without indorsement matter for the proviso-like part of Section 43?	No, if a party has transferred the instrument with or without indorsement to a holder for consideration, such holder and subsequent holders may recover.
What is the subject matter of Exception I to Section 43 of the Negotiable Instruments Act, 1881?	Exception I deals with the bar on recovery by an accommodated party after payment.
Can a party for whose accommodation a negotiable instrument was made, drawn, accepted or indorsed recover after paying it under Exception I to Section 43?	No, if he has paid the amount thereof, he cannot recover that amount from any person who became a party to the instrument for his accommodation.
Who is barred from recovery under Exception I to Section 43?	A party for whose accommodation the instrument was made, drawn, accepted or indorsed, if he has paid the amount thereof.
Against whom is recovery barred under Exception I to Section 43?	Against any person who became a party to the instrument for his accommodation.
What is the subject matter of Exception II to Section 43 of the Negotiable Instruments Act, 1881?	Exception II deals with limitation on recovery by a party who induced another to become a party for consideration which he failed to pay or perform in full.
What is the rule under Exception II to Section 43?	No party who induced another party to make, draw, accept, indorse or transfer the instrument to him for a consideration which he has failed to pay or perform in full shall recover thereon an amount exceeding the value of the consideration, if any, which he has actually paid or performed.
Who is restricted under Exception II to Section 43?	A party to the instrument who induced another party to make, draw, accept, indorse or transfer it to him for consideration which he failed to pay or perform in full.
To what extent can such party recover under Exception II to Section 43?	He cannot recover an amount exceeding the value of the consideration, if any, which he has actually paid or performed.
What is the subject matter of Section 44 of the Negotiable Instruments Act, 1881?	Section 44 deals with partial absence or failure of money-consideration.
When does Section 44 apply?	It applies when the consideration for which a person signed a promissory note, bill of exchange or cheque consisted of money and was originally absent in part or has subsequently failed in part.
What is the rule under Section 44 where money-consideration was originally absent in part?	The sum which a holder standing in immediate relation with the signer is entitled to receive from him is proportionally reduced.
What is the rule under Section 44 where money-consideration has subsequently failed in part?	The sum which a holder standing in immediate relation with the signer is entitled to receive from him is proportionally reduced.
What kind of consideration is contemplated under Section 44?	Consideration consisting of money.
Who gets proportionately reduced recovery under Section 44?	A holder standing in immediate relation with the signer.
How is the amount recoverable affected under Section 44?	The sum recoverable is proportionally reduced.
What is the subject matter of the Explanation to Section 44 of the Negotiable Instruments Act, 1881?	The Explanation defines who stands in immediate relation with whom for the purpose of Section 44.
Who stands in immediate relation with the acceptor under the Explanation to Section 44?	The drawer of a bill of exchange stands in immediate relation with the acceptor.
Who stands in immediate relation with the payee under the Explanation to Section 44?	The maker of a promissory note, bill of exchange or cheque stands in immediate relation with the payee.
Who stands in immediate relation with the indorsee under the Explanation to Section 44?	The indorser stands in immediate relation with his indorsee.
Can other signers stand in immediate relation with a holder under the Explanation to Section 44?	Yes, other signers may by agreement stand in immediate relation with a holder.
What is the legal effect in the illustration to Section 44 where B proves acceptance for value only to Rs. 400 out of Rs. 500?	A can only recover Rs. 400.
In the illustration to Section 44, for what amount does A draw the bill on B?	A draws the bill on B for Rs. 500 payable to the order of A.
In the illustration to Section 44, what does B prove regarding consideration?	B proves that the bill was accepted for value as to Rs. 400 and as an accommodation to the plaintiff as to the residue.
What is the subject matter of Section 45 of the Negotiable Instruments Act, 1881?	Section 45 deals with partial failure of consideration not consisting of money.
When does Section 45 apply?	It applies where a part of the consideration for which a person signed a promissory note, bill of exchange or cheque, though not consisting of money, is ascertainable in money without collateral enquiry, and there has been a failure of that part.
What kind of consideration is contemplated under Section 45?	Consideration not consisting of money, but a part of it must be ascertainable in money without collateral enquiry.
What is the rule under Section 45 on partial failure of non-money consideration?	The sum which a holder standing in immediate relation with such signer is entitled to receive from him is proportionally reduced.
What is the condition regarding ascertainability under Section 45?	The failed part of the non-money consideration must be ascertainable in money without collateral enquiry.
Is collateral enquiry permitted for applying Section 45?	No, the failed part must be ascertainable in money without collateral enquiry.
Who gets proportionately reduced recovery under Section 45?	A holder standing in immediate relation with the signer.
How is the amount recoverable affected under Section 45?	The sum recoverable is proportionally reduced.
What is the subject matter of Section 45A of the Negotiable Instruments Act, 1881?	Section 45A deals with the holder’s right to a duplicate of a lost bill.
When does Section 45A apply?	It applies where a bill of exchange has been lost before it is over-due.
Who may apply for a duplicate bill under Section 45A?	The person who was the holder of the bill may apply to the drawer.
To whom must the application for a duplicate bill be made under Section 45A?	The application must be made to the drawer.
What may the holder request from the drawer under Section 45A?	He may request another bill of the same tenor.
What kind of duplicate may be demanded under Section 45A?	Another bill of the same tenor may be demanded.
Is the right under Section 45A available after the bill becomes over-due?	No, it applies only where the bill is lost before it is over-due.
What condition may the drawer impose before issuing a duplicate bill under Section 45A?	The holder must give security to the drawer, if required, to indemnify him against all persons whatever in case the bill alleged to have been lost is found again.
Can the drawer require security before giving a duplicate bill under Section 45A?	Yes, the drawer may require security.
For what purpose is security given under Section 45A?	It is given to indemnify the drawer against all persons whatever in case the bill alleged to have been lost is found again.
Against whom must the drawer be indemnified under Section 45A?	He must be indemnified against all persons whatever.
What is the consequence if the lost bill is found again under Section 45A?	The security operates to indemnify the drawer against all persons whatever.
Can the drawer lawfully refuse to give a duplicate bill after proper request under Section 45A?	No, if he refuses, he may be compelled to give such duplicate bill.

CHAPTER-IV
OF NEGOTIATION
What is the subject matter of Section 46 of the Negotiable Instruments Act, 1881?	Section 46 deals with delivery.
When is the making, acceptance or indorsement of a promissory note, bill of exchange or cheque completed under Section 46?	The making, acceptance or indorsement is completed by delivery, actual or constructive.
What kinds of delivery complete making, acceptance or indorsement under Section 46?	Actual delivery or constructive delivery completes it.
Is delivery essential to complete making, acceptance or indorsement under Section 46?	Yes, it is completed by delivery, actual or constructive.
What is the rule as between parties standing in immediate relation under Section 46?	Delivery to be effectual must be made by the party making, accepting or indorsing the instrument, or by a person authorized by him in that behalf.
Who must make delivery between parties standing in immediate relation under Section 46?	The party making, accepting or indorsing the instrument, or a person authorized by him, must make delivery.
What is required for effectual delivery between immediate parties under Section 46?	Delivery must be made by the maker, acceptor or indorser, or by a person authorized by him.
Can conditional or special-purpose delivery be proved under Section 46?	Yes, as between such parties and any holder other than a holder in due course, it may be shown that the instrument was delivered conditionally or for a special purpose only.
Against whom can conditional or special-purpose delivery be shown under Section 46?	It may be shown as between immediate parties and any holder of the instrument other than a holder in due course.
Can conditional delivery be set up against a holder in due course under Section 46?	No, the section permits such proof only against a holder other than a holder in due course.
For what purpose may conditional delivery be shown under Section 46?	To show that the instrument was not delivered for the purpose of transferring absolutely the property therein.
What is the rule for negotiability of a bearer instrument under Section 46?	A promissory note, bill of exchange or cheque payable to bearer is negotiable by delivery thereof.
How is a bearer instrument negotiated under Section 46?	It is negotiated by delivery thereof.
What is the rule for negotiability of an order instrument under Section 46?	A promissory note, bill of exchange or cheque payable to order is negotiable by the holder by indorsement and delivery thereof.
How is an order instrument negotiated under Section 46?	It is negotiated by the holder by indorsement and delivery thereof.
What is the subject matter of Section 47 of the Negotiable Instruments Act, 1881?	Section 47 deals with negotiation by delivery.
What is the general rule under Section 47?	Subject to Section 58, a promissory note, bill of exchange or cheque payable to bearer is negotiable by delivery thereof.
To which instruments does Section 47 apply?	It applies to a promissory note, bill of exchange or cheque payable to bearer.
Is Section 47 subject to any other provision?	Yes, it is subject to the provisions of Section 58.
What is the Exception to Section 47?	A promissory note, bill of exchange or cheque delivered on condition that it is not to take effect except on a certain event is not negotiable, except in the hands of a holder for value without notice of the condition, unless such event happens.
When is a bearer instrument delivered conditionally not negotiable under Section 47?	When it is delivered on condition that it is not to take effect except in a certain event, it is not negotiable unless such event happens.
Who is protected despite conditional delivery under the Exception to Section 47?	A holder for value without notice of the condition is protected.
Can a conditionally delivered bearer instrument be negotiated before the event happens under Section 47?	No, except in the hands of a holder for value without notice of the condition.
What is the legal effect in illustration (a) to Section 47?	When A, the holder of a bearer instrument, delivers it to B’s agent to keep for B, the instrument has been negotiated.
Does delivery to the agent of the transferee amount to negotiation under illustration (a) to Section 47?	Yes, the instrument has been negotiated.
What is the legal effect in illustration (b) to Section 47?	When A directs his banker holding the bearer instrument to transfer it to B’s credit and the banker thereafter holds it as B’s agent, the instrument has been negotiated and B becomes the holder.
When does B become the holder in illustration (b) to Section 47?	When the banker transfers the instrument to B’s credit and thereafter possesses it as B’s agent.
What is the subject matter of Section 48 of the Negotiable Instruments Act, 1881?	Section 48 deals with negotiation by indorsement.
What is the rule under Section 48?	Subject to Section 58, a promissory note, bill of exchange or cheque payable to order is negotiable by the holder by indorsement and delivery thereof.
To which instruments does Section 48 apply?	It applies to a promissory note, bill of exchange or cheque payable to order.
Who may negotiate an order instrument under Section 48?	The holder may negotiate it by indorsement and delivery thereof.
Is Section 48 subject to any other provision?	Yes, it is subject to the provisions of Section 58.
What are the essential requirements for negotiation under Section 48?	Indorsement and delivery by the holder are essential.
What is the subject matter of Section 49 of the Negotiable Instruments Act, 1881?	Section 49 deals with conversion of indorsement in blank into indorsement in full.
Who may convert an indorsement in blank into an indorsement in full under Section 49?	The holder of a negotiable instrument indorsed in blank may do so.
How can an indorsement in blank be converted into an indorsement in full under Section 49?	By writing above the indorser’s signature a direction to pay to any other person as indorsee, without signing his own name.
Is the holder required to sign his own name while converting a blank indorsement into a full indorsement under Section 49?	No, he may do so without signing his own name.
What must be written above the indorser’s signature under Section 49?	A direction to pay to any other person as indorsee must be written above the indorser’s signature.
To whom may payment be directed while converting under Section 49?	Payment may be directed to any other person as indorsee.
Does the holder incur the responsibility of an indorser by converting a blank indorsement into a full indorsement under Section 49?	No, the holder does not thereby incur the responsibility of an indorser.
What is the legal effect of conversion under Section 49?	The indorsement in blank is converted into an indorsement in full without imposing indorser’s liability on the holder.
What is the subject matter of Section 50 of the Negotiable Instruments Act, 1881?	Section 50 deals with the effect of indorsement.
What is the general effect of indorsement under Section 50?	The indorsement of a negotiable instrument followed by delivery transfers to the indorsee the property therein with the right of further negotiation.
What is necessary for transfer of property under Section 50?	Indorsement followed by delivery is necessary.
What rights pass to the indorsee under Section 50?	The property in the instrument and the right of further negotiation pass to the indorsee.
Can the right of further negotiation be restricted under Section 50?	Yes, the indorsement may, by express words, restrict or exclude the right of further negotiation.
How may the indorser restrict the right of further negotiation under Section 50?	By express words in the indorsement.
Can an indorsement under Section 50 exclude further negotiation altogether?	Yes, it may expressly exclude such right.
Can an indorsement under Section 50 merely constitute the indorsee an agent?	Yes, it may merely constitute the indorsee an agent to indorse the instrument, or to receive its contents for the indorser, or for some other specified person.
For what purposes may the indorsee be constituted an agent under Section 50?	He may be constituted an agent to indorse the instrument, or to receive its contents for the indorser, or for some other specified person.
What is the legal effect of illustration (a) to Section 50?	The indorsement “Pay the contents to C only” excludes the right of further negotiation by C.
What is the legal effect of illustration (b) to Section 50?	The indorsement “Pay C for my use” excludes the right of further negotiation by C.
What is the legal effect of illustration (c) to Section 50?	The indorsement “Pay C or order for the account of B” excludes the right of further negotiation by C.
What is the legal effect of illustration (d) to Section 50?	The indorsement “the within must be credited to C” excludes the right of further negotiation by C.
What is the legal effect of illustration (e) to Section 50?	The indorsement “Pay C” does not exclude the right of further negotiation by C.
What is the legal effect of illustration (f) to Section 50?	The indorsement “Pay C value in account with the Oriental Bank” does not exclude the right of further negotiation by C.
What is the legal effect of illustration (g) to Section 50?	The indorsement “Pay the contents to C, being part of the consideration in a certain deed of assignment executed by C to the indorser and others” does not exclude the right of further negotiation by C.
What is the subject matter of Section 51 of the Negotiable Instruments Act, 1881?	Section 51 deals with who may negotiate.
Who may negotiate a negotiable instrument under Section 51?	Every sole maker, drawer, payee or indorsee, or all of several joint makers, drawers, payees or indorsees, may, if the negotiability of the instrument has not been restricted or excluded as mentioned in Section 50, indorse and negotiate the same.
Can a sole maker negotiate under Section 51?	Yes, a sole maker may indorse and negotiate the instrument if its negotiability has not been restricted or excluded and he is lawfully in possession or holder thereof.
Can a sole drawer negotiate under Section 51?	Yes, a sole drawer may indorse and negotiate the instrument if its negotiability has not been restricted or excluded and he is lawfully in possession or holder thereof.
Can a sole payee negotiate under Section 51?	Yes, a sole payee may indorse and negotiate the instrument if its negotiability has not been restricted or excluded and he is holder thereof.
Can a sole indorsee negotiate under Section 51?	Yes, a sole indorsee may indorse and negotiate the instrument if its negotiability has not been restricted or excluded and he is holder thereof.
Who may negotiate in case of several joint makers, drawers, payees or indorsees under Section 51?	All of several joint makers, drawers, payees or indorsees may indorse and negotiate the instrument.
What is the condition relating to Section 50 under Section 51?	The negotiability of the instrument must not have been restricted or excluded as mentioned in Section 50.
What does the Explanation to Section 51 provide regarding maker or drawer?	Nothing in Section 51 enables a maker or drawer to indorse or negotiate an instrument unless he is in lawful possession or is holder thereof.
Can a maker or drawer not in lawful possession or not being holder negotiate under Section 51?	No, he cannot.
What does the Explanation to Section 51 provide regarding payee or indorsee?	Nothing in Section 51 enables a payee or indorsee to indorse or negotiate an instrument unless he is holder thereof.
Can a payee or indorsee who is not holder negotiate under Section 51?	No, he cannot.
What is the legal effect of the illustration to Section 51?	Where a bill is drawn payable to A or order and A indorses it to B without the words “or order” or equivalent words, B may negotiate the instrument.
Does omission of the words “or order” in an indorsement prevent further negotiation under the illustration to Section 51?	No, B may still negotiate the instrument.
What is the subject matter of Section 52 of the Negotiable Instruments Act, 1881?	Section 52 deals with an indorser who excludes his own liability or makes it conditional.
Can an indorser exclude his own liability under Section 52?	Yes, the indorser of a negotiable instrument may, by express words in the indorsement, exclude his own liability thereon.
How can an indorser exclude his liability under Section 52?	An indorser may exclude his liability by express words in the indorsement.
Can an indorser make his liability conditional under Section 52?	Yes, an indorser may by express words in the indorsement make his liability depend upon the happening of a specified event.
Can an indorser make the indorsee’s right conditional under Section 52?	Yes, an indorser may make the right of the indorsee to receive the amount due depend upon the happening of a specified event.
Must the specified event under Section 52 be certain to happen?	No, the specified event may never happen.
What is the legal effect of a “without recourse” indorsement under Section 52?	A “without recourse” indorsement excludes the personal liability of the indorser.
What is Illustration (a) to Section 52?	If the indorser signs his name adding the words “without recourse”, he incurs no liability upon that indorsement.
What happens when an indorser who excluded his liability later becomes holder again under Section 52?	All intermediate indorsers become liable to him.
What is the rule in the second paragraph of Section 52?	Where an indorser excludes his liability and afterwards becomes the holder of the instrument, all intermediate indorsers are liable to him.
What is Illustration (b) to Section 52?	If A transfers to B by indorsement “without recourse”, B indorses to C, and C indorses back to A, then A is reinstated in his former rights and also has the rights of an indorsee against B and C.
What is the practical exam point on Section 52?	Section 52 permits qualified or conditional indorsement, including “without recourse”, and if such indorser later reacquires the instrument, he can proceed against all intermediate indorsers.
What is the subject matter of Section 53 of the Negotiable Instruments Act, 1881?	Section 53 deals with a holder deriving title from a holder in due course.
Who is covered by Section 53?	A holder of a negotiable instrument who derives title from a holder in due course is covered by Section 53.
What rights does a holder deriving title from a holder in due course get under Section 53?	He has the rights thereon of that holder in due course.
Does Section 53 require the present holder himself to be a holder in due course?	No, it is sufficient if he derives title from a holder in due course.
What is the doctrine under Section 53?	Section 53 embodies the shelter principle that a holder claiming through a holder in due course gets the rights of that holder in due course.
Can a holder deriving title from a holder in due course enforce the instrument free from prior defects?	Yes, he gets the rights of the holder in due course whose title he derives.
What is the practical exam point on Section 53?	Section 53 protects derivative holders by conferring on them the rights of the holder in due course through whom they claim.
What is the subject matter of Section 54 of the Negotiable Instruments Act, 1881?	Section 54 deals with an instrument indorsed in blank.
What is the effect of a blank indorsement under Section 54?	Subject to the provisions as to crossed cheques, a negotiable instrument indorsed in blank is payable to the bearer thereof.
Does a blank indorsement convert an order instrument into a bearer instrument under Section 54?	Yes, a negotiable instrument indorsed in blank becomes payable to the bearer even if originally payable to order.
Is Section 54 absolute in all cases?	No, it is subject to the provisions hereinafter contained as to crossed cheques.
Can an instrument originally payable to order become payable to bearer after blank indorsement?	Yes, under Section 54 it becomes payable to the bearer even though originally payable to order.
What is the practical exam point on Section 54?	A blank indorsement converts the negotiable instrument into one payable to bearer, subject to rules relating to crossed cheques.
What is the subject matter of Section 55 of the Negotiable Instruments Act, 1881?	Section 55 deals with conversion of indorsement in blank into indorsement in full.
What happens when a negotiable instrument indorsed in blank is later indorsed in full under Section 55?	The amount of it cannot be claimed from the indorser in full except by the person to whom it has been indorsed in full or by one deriving title through such person.
Against whom does Section 55 operate?	Section 55 limits the liability of the indorser in full after a prior blank indorsement.
Who can claim against the indorser in full under Section 55?	Only the person to whom it has been indorsed in full or one who derives title through such person can claim against the indorser in full.
Can a mere bearer claim against the indorser in full after conversion under Section 55?	No, only the named indorsee in full or a person deriving title through him can claim against the indorser in full.
What is the practical exam point on Section 55?	Once a blank indorsement is followed by an indorsement in full, the indorser in full is liable only to the named indorsee or those claiming through him.
What is the subject matter of Section 56 of the Negotiable Instruments Act, 1881?	Section 56 deals with indorsement for part of sum due.
Is a partial indorsement valid for negotiation under Section 56?	No, no writing on a negotiable instrument is valid for the purpose of negotiation if it purports to transfer only a part of the amount appearing to be due.
Can a negotiable instrument be negotiated for part of its amount by indorsement?	No, a partial transfer of the amount due is invalid for the purpose of negotiation.
What is the rule against splitting under Section 56?	A negotiable instrument cannot be negotiated in fragments by transferring only part of the amount due.
What is the exception in Section 56?	Where the amount due has been partly paid, a note to that effect may be indorsed on the instrument, and it may then be negotiated for the balance.
Can an instrument partly paid still be negotiated under Section 56?	Yes, if part payment is noted on the instrument, it may be negotiated for the balance.
What must be done when part payment has been made before further negotiation under Section 56?	A note of the part payment must be indorsed on the instrument.
What is the practical exam point on Section 56?	Partial indorsement is invalid, but after part payment is noted on the instrument, it may be negotiated for the remaining balance.
What is the subject matter of Section 57 of the Negotiable Instruments Act, 1881?	Section 57 deals with the inability of the legal representative to negotiate by delivery only an instrument indorsed by the deceased.
Who is restricted under Section 57?	The legal representative of a deceased person is restricted under Section 57.
Which instruments are covered by Section 57?	A promissory note, bill of exchange or cheque payable to order and indorsed by the deceased but not delivered is covered by Section 57.
Can the legal representative negotiate by delivery only an instrument payable to order and indorsed by the deceased but not delivered?	No, the legal representative cannot negotiate such instrument by delivery only.
What is the condition for Section 57 to apply?	The instrument must be payable to order, indorsed by the deceased, but not delivered before death.
Why does Section 57 bar negotiation by delivery only?	Because indorsement without delivery by the deceased is incomplete for negotiation, and the legal representative cannot perfect it merely by delivery.
What is the practical exam point on Section 57?	Where a deceased had indorsed but not delivered an order instrument, his legal representative cannot negotiate it by delivery alone.
What is the subject matter of Section 58 of the Negotiable Instruments Act, 1881?	Section 58 deals with instruments obtained by unlawful means or for unlawful consideration.
What situations are covered by Section 58?	Section 58 covers instruments that have been lost, or obtained from the maker, acceptor or holder by means of an offence or fraud, or for an unlawful consideration.
What is the general rule under Section 58?	No possessor or indorsee claiming through the person who found or unlawfully obtained the instrument is entitled to receive the amount due from the maker, acceptor or holder, or from any party prior to such holder.
Does a finder of a lost negotiable instrument get good title under Section 58?	No, a finder of a lost instrument does not get title enforceable against prior parties unless protected by holder in due course status.
What if the instrument was obtained by fraud under Section 58?	A person claiming through the fraudulent holder cannot recover from prior parties unless he or someone through whom he claims was a holder in due course.
What if the instrument was obtained for unlawful consideration under Section 58?	A person claiming through such unlawful acquisition cannot recover from prior parties unless protected by holder in due course status.
Against whom is recovery barred under Section 58?	Recovery is barred against the maker, acceptor or holder from whom it was lost or obtained, and against any party prior to such holder.
What is the exception to Section 58?	The exception is where the possessor or indorsee is, or some person through whom he claims was, a holder in due course.
Can a holder in due course defeat the defect under Section 58?	Yes, a holder in due course, or one claiming through him, can enforce the instrument despite prior loss, fraud, offence or unlawful consideration.
What is the relation between Sections 53 and 58?	Section 53 gives derivative rights through a holder in due course, and Section 58 preserves enforceability where the possessor or someone through whom he claims was a holder in due course.
What is the practical exam point on Section 58?	Section 58 denies title to a finder or unlawful holder and persons claiming through him, unless the claimant himself or his predecessor in title was a holder in due course.
What is the combined effect of Sections 52 to 58 of the Negotiable Instruments Act, 1881?	Sections 52 to 58 govern qualified and conditional indorsements, derivative title through holder in due course, effect of blank and full indorsements, prohibition of partial indorsement, restriction on posthumous negotiation by delivery, and loss of title in cases of loss, fraud, offence or unlawful consideration subject to holder in due course protection.
What is the subject matter of Section 59 of the Negotiable Instruments Act, 1881?	Section 59 deals with an instrument acquired after dishonour or when overdue.
What is the general rule under Section 59 when a holder acquires a negotiable instrument after dishonour with notice thereof?	The holder has only, as against the other parties, the rights thereon of his transferor.
What is the general rule under Section 59 when a holder acquires a negotiable instrument after maturity?	The holder has only, as against the other parties, the rights thereon of his transferor.
Does acquisition after non-acceptance with notice affect the holder’s rights under Section 59?	Yes, if the holder acquires the instrument after dishonour by non-acceptance with notice thereof, he has only the rights of his transferor against the other parties.
Does acquisition after non-payment with notice affect the holder’s rights under Section 59?	Yes, if the holder acquires the instrument after dishonour by non-payment with notice thereof, he has only the rights of his transferor against the other parties.
Against whom are the rights limited under Section 59?	As against the other parties, the holder has only the rights of his transferor.
What is the effect of notice of dishonour under Section 59?	If the holder acquires the instrument after dishonour with notice thereof, he takes only the rights of his transferor against the other parties.
What is the subject matter of the proviso to Section 59 regarding accommodation note or bill?	The proviso deals with recovery on an accommodation promissory note or bill acquired after maturity.
Who is protected under the proviso to Section 59?	Any person who, in good faith and for consideration, becomes the holder after maturity of an accommodation promissory note or bill of exchange is protected.
What is an accommodation note or bill for the purpose of the proviso to Section 59?	It is a promissory note or bill of exchange made, drawn or accepted without consideration for the purpose of enabling some party thereto to raise money thereon.
What are the conditions for the benefit of the proviso to Section 59?	The person must become holder after maturity, in good faith and for consideration, of a promissory note or bill of exchange made, drawn or accepted without consideration for the purpose of enabling some party thereto to raise money thereon.
What right does the protected holder get under the proviso to Section 59?	He may recover the amount of the note or bill from any prior party.
From whom may the holder recover under the proviso to Section 59?	He may recover the amount from any prior party.
Does acquisition after maturity always restrict the holder to transferor’s rights under Section 59?	No, the proviso creates an exception for a holder in good faith and for consideration of an accommodation note or bill.
What is the legal effect of the illustration to Section 59?	Where the drawer has already sold collateral goods and retained the proceeds after non-payment at maturity and then indorses the bill to A, A’s title is subject to the same objection as the drawer’s title.
What collateral arrangement is mentioned in the illustration to Section 59?	The acceptor deposited certain goods with the drawer as collateral security for payment of the bill, with power to the drawer to sell the goods and apply the proceeds in discharge of the bill if unpaid at maturity.
What did the drawer do after the bill was not paid at maturity in the illustration to Section 59?	The drawer sold the goods and retained the proceeds, but indorsed the bill to A.
What is the consequence for A in the illustration to Section 59?	A’s title is subject to the same objection as the drawer’s title.
What is the subject matter of Section 60 of the Negotiable Instruments Act, 1881?	Section 60 deals with an instrument being negotiable till payment or satisfaction.
Until when may a negotiable instrument be negotiated under Section 60?	A negotiable instrument may be negotiated until payment or satisfaction thereof by the maker, drawee or acceptor at or after maturity.
Who cannot negotiate a negotiable instrument after maturity under Section 60?	The maker, drawee or acceptor cannot negotiate it after maturity.
Can a negotiable instrument be negotiated after maturity under Section 60?	Yes, it may be negotiated after maturity, except by the maker, drawee or acceptor after maturity, until payment or satisfaction thereof.
Can the maker negotiate the instrument after maturity under Section 60?	No, the maker cannot negotiate it after maturity.
Can the drawee negotiate the instrument after maturity under Section 60?	No, the drawee cannot negotiate it after maturity.
Can the acceptor negotiate the instrument after maturity under Section 60?	No, the acceptor cannot negotiate it after maturity.
What is the effect of payment or satisfaction under Section 60?	After payment or satisfaction by the maker, drawee or acceptor at or after maturity, the instrument is not negotiable.
Can a negotiable instrument be negotiated after payment or satisfaction under Section 60?	No, it cannot be negotiated after such payment or satisfaction.
Who must make the payment or satisfaction contemplated under Section 60?	The payment or satisfaction must be by the maker, drawee or acceptor at or after maturity.

CHAPTER-V
OF PRESENTMENT
What is the subject matter of Section 61 of the Negotiable Instruments Act, 1881?	Section 61 deals with presentment for acceptance.
Which bill of exchange must be presented for acceptance under Section 61?	A bill of exchange payable after sight must be presented to the drawee for acceptance.
When is presentment for acceptance mandatory under Section 61?	It is mandatory where the bill is payable after sight and no time or place is specified therein for presentment.
To whom must a bill payable after sight be presented under Section 61?	It must be presented to the drawee thereof for acceptance.
Who must present the bill for acceptance under Section 61?	It must be presented by a person entitled to demand acceptance.
When must presentment for acceptance be made under Section 61?	It must be made within a reasonable time after the bill is drawn.
At what time must presentment for acceptance be made under Section 61?	It must be made in business hours on a business day.
What is the condition regarding the drawee’s availability under Section 61?	Presentment must be made if the drawee can, after reasonable search, be found.
What is the consequence of default in presentment for acceptance under Section 61?	No party thereto is liable thereon to the person making such default.
What happens if the drawee cannot be found after reasonable search under Section 61?	The bill is dishonoured.
What is the rule when the bill is directed to the drawee at a particular place under Section 61?	It must be presented at that particular place.
What happens if the drawee cannot be found at the particular place on the due date for presentment under Section 61?	The bill is dishonoured.
Is postal presentment recognized under Section 61?	Yes, where authorized by agreement or usage, a presentment through the post office by means of a registered letter is sufficient.
When is presentment through registered post sufficient under Section 61?	It is sufficient where authorized by agreement or usage.
What is the subject matter of Section 62 of the Negotiable Instruments Act, 1881?	Section 62 deals with presentment of promissory note for sight.
Which promissory note must be presented for sight under Section 62?	A promissory note payable at a certain period after sight must be presented to the maker for sight.
To whom must such promissory note be presented under Section 62?	It must be presented to the maker thereof for sight.
Who must present the promissory note for sight under Section 62?	It must be presented by a person entitled to demand payment.
When must the promissory note be presented for sight under Section 62?	It must be presented within a reasonable time after it is made.
At what time must presentment for sight be made under Section 62?	It must be made in business hours on a business day.
What is the condition regarding the maker’s availability under Section 62?	Presentment is required if the maker can, after reasonable search, be found.
What is the consequence of default in presentment for sight under Section 62?	No party thereto is liable thereon to the person making such default.
What is the subject matter of Section 63 of the Negotiable Instruments Act, 1881?	Section 63 deals with the drawee’s time for deliberation.
What must the holder allow if the drawee so requires under Section 63?	The holder must allow the drawee forty-eight hours to consider whether he will accept the bill.
When does Section 63 apply?	It applies where a bill of exchange is presented to the drawee for acceptance and the drawee requires time for deliberation.
How is the period of forty-eight hours calculated under Section 63?	Forty-eight hours are calculated exclusive of public holidays.
Can the holder refuse the drawee’s request for deliberation time under Section 63?	No, the holder must allow the drawee forty-eight hours if so required.
What is the subject matter of Section 64 of the Negotiable Instruments Act, 1881?	Section 64 deals with presentment for payment.
Which instruments must be presented for payment under Section 64(1)?	Promissory notes, bills of exchange and cheques must be presented for payment.
To whom must a promissory note be presented for payment under Section 64(1)?	It must be presented to the maker thereof.
To whom must a bill of exchange be presented for payment under Section 64(1)?	It must be presented to the acceptor thereof.
To whom must a cheque be presented for payment under Section 64(1)?	It must be presented to the drawee thereof.
Who must present the instrument for payment under Section 64(1)?	It must be presented by or on behalf of the holder.
What is the consequence of default in presentment for payment under Section 64(1)?	The other parties thereto are not liable thereon to such holder.
Is postal presentment recognized under Section 64(1)?	Yes, where authorized by agreement or usage, a presentment through the post office by means of a registered letter is sufficient.
When is presentment through registered post sufficient under Section 64(1)?	It is sufficient where authorized by agreement or usage.
What is the exception to presentment for payment under Section 64?	Where a promissory note is payable on demand and is not payable at a specified place, no presentment is necessary in order to charge the maker thereof.
When is no presentment necessary to charge the maker under Section 64?	No presentment is necessary where a promissory note is payable on demand and is not payable at a specified place.
What does Section 64(2) deal with?	Section 64(2) deals with presentment for payment of an electronic image of a truncated cheque.
What right does the drawee bank have when an electronic image of a truncated cheque is presented under Section 64(2)?	The drawee bank is entitled to demand any further information regarding the truncated cheque from the bank holding the truncated cheque in case of reasonable suspicion about the genuineness of the apparent tenor of the instrument.
From whom may the drawee bank demand further information under Section 64(2)?	It may demand further information from the bank holding the truncated cheque.
When may the drawee bank demand further information under Section 64(2)?	It may do so in case of any reasonable suspicion about the genuineness of the apparent tenor of the instrument.
What kinds of suspicion are specifically mentioned in Section 64(2)?	Suspicion of fraud, forgery, tampering or destruction of the instrument.
What further right arises if the suspicion is of fraud, forgery, tampering or destruction under Section 64(2)?	The drawee bank is entitled to further demand the presentment of the truncated cheque itself for verification.
What may the drawee bank demand for verification under Section 64(2)?	It may demand presentment of the truncated cheque itself for verification.
What does the proviso to Section 64(2) provide?	The truncated cheque so demanded by the drawee bank shall be retained by it if the payment is made accordingly.
When may the drawee bank retain the truncated cheque under the proviso to Section 64(2)?	It may retain the truncated cheque if the payment is made accordingly.
What is the subject matter of Section 65 of the Negotiable Instruments Act, 1881?	Section 65 deals with hours for presentment.
When must presentment for payment be made under Section 65?	Presentment for payment must be made during the usual hours of business.
Where must presentment be made if the instrument is payable at a banker’s under Section 65?	If payable at a banker’s, presentment must be made within banking hours.
What is the distinction made in Section 65 regarding hours for presentment?	Generally, presentment must be during usual hours of business, but if at a banker’s, it must be within banking hours.
What is the subject matter of Section 66 of the Negotiable Instruments Act, 1881?	Section 66 deals with presentment for payment of instrument payable after date or sight.
Which instruments are covered under Section 66?	A promissory note or bill of exchange made payable at a specified period after date or sight thereof.
When must a promissory note payable at a specified period after date be presented under Section 66?	It must be presented for payment at maturity.
When must a bill of exchange payable at a specified period after sight be presented under Section 66?	It must be presented for payment at maturity.
What is the rule under Section 66 for instruments payable at a specified period after date or sight?	They must be presented for payment at maturity.
What is the subject matter of Section 67 of the Negotiable Instruments Act, 1881?	Section 67 deals with presentment for payment of promissory note payable by instalments.
Which instrument is specifically covered under Section 67?	A promissory note payable by instalments.
When must a promissory note payable by instalments be presented for payment under Section 67?	It must be presented for payment on the third day after the date fixed for payment of each instalment.
How is the date of presentment calculated under Section 67?	Presentment must be made on the third day after the date fixed for payment of each instalment.
What is the effect of non-payment on presentment under Section 67?	Non-payment on such presentment has the same effect as non-payment of a note at maturity.
What is the legal consequence of non-payment of an instalment on proper presentment under Section 67?	It has the same effect as non-payment of a promissory note at maturity.
What is the subject matter of Section 68 of the Negotiable Instruments Act, 1881?	Section 68 deals with presentment for payment of an instrument payable at a specified place and not elsewhere.
Which instruments are covered under Section 68?	A promissory note, bill of exchange or cheque made, drawn or accepted payable at a specified place and not elsewhere.
What is the rule under Section 68?	Such instrument must, in order to charge any party thereto, be presented for payment at that specified place.
Why is presentment at the specified place necessary under Section 68?	It is necessary in order to charge any party to the instrument.
What is the effect of the words “and not elsewhere” in Section 68?	They make the specified place exclusive for presentment for payment.
What is the subject matter of Section 69 of the Negotiable Instruments Act, 1881?	Section 69 deals with an instrument payable at a specified place.
Which instruments are covered under Section 69?	A promissory note or bill of exchange made, drawn or accepted payable at a specified place.
What is the rule under Section 69?	Such instrument must, in order to charge the maker or drawer thereof, be presented for payment at that place.
Whom does Section 69 specifically protect?	Section 69 specifically protects the maker or drawer.
To charge whom is presentment at the specified place required under Section 69?	It is required to charge the maker or drawer thereof.
What is the difference between Section 68 and Section 69?	Section 68 applies where the instrument is payable at a specified place and not elsewhere and requires presentment there to charge any party, whereas Section 69 applies where the instrument is merely payable at a specified place and requires presentment there to charge the maker or drawer.
What is the subject matter of Section 70 of the Negotiable Instruments Act, 1881?	Section 70 deals with presentment where no exclusive place is specified.
Which instruments are covered under Section 70?	A promissory note or bill of exchange not made payable as mentioned in Sections 68 and 69.
Where must presentment for payment be made under Section 70?	It must be made at the place of business, if any, or at the usual residence, of the maker, drawee or acceptor, as the case may be.
What is the first place of presentment under Section 70?	The place of business of the maker, drawee or acceptor, if any.
What is the alternative place of presentment under Section 70 if there is no place of business?	The usual residence of the maker, drawee or acceptor.
What is the subject matter of Section 71 of the Negotiable Instruments Act, 1881?	Section 71 deals with presentment when the maker, drawee or acceptor has no known place of business or residence.
When does Section 71 apply?	It applies when the maker, drawee or acceptor has no known place of business or fixed residence and no place is specified in the instrument for presentment for acceptance or payment.
How may presentment be made under Section 71?	Presentment may be made to him in person wherever he can be found.
What is the condition precedent for personal presentment under Section 71?	The maker, drawee or acceptor must have no known place of business or fixed residence and no place must be specified in the instrument for presentment.
What is the subject matter of Section 72 of the Negotiable Instruments Act, 1881?	Section 72 deals with presentment of cheque to charge drawer.
What is the rule under Section 72?	Subject to Section 84, a cheque must, in order to charge the drawer, be presented at the bank upon which it is drawn before the relation between the drawer and his banker has been altered to the prejudice of the drawer.
Where must a cheque be presented under Section 72?	It must be presented at the bank upon which it is drawn.
Why must a cheque be presented under Section 72?	It must be presented in order to charge the drawer.
What is the time requirement under Section 72?	Presentment must be made before the relation between the drawer and his banker has been altered to the prejudice of the drawer.
To which provision is Section 72 expressly made subject?	Section 72 is subject to the provisions of Section 84.
What is the subject matter of Section 73 of the Negotiable Instruments Act, 1881?	Section 73 deals with presentment of cheque to charge any person except the drawer.
What is the rule under Section 73?	A cheque must, in order to charge any person except the drawer, be presented within a reasonable time after delivery thereof by such person.
Whom does Section 73 apply to?	It applies to any person except the drawer.
Within what time must a cheque be presented under Section 73?	It must be presented within a reasonable time after delivery thereof by such person.
From which point is reasonable time computed under Section 73?	It is computed from the delivery of the cheque by such person.
What is the subject matter of Section 74 of the Negotiable Instruments Act, 1881?	Section 74 deals with presentment of an instrument payable on demand.
To which provision is Section 74 made subject?	Section 74 is subject to the provisions of Section 31.
What is the rule under Section 74?	A negotiable instrument payable on demand must be presented for payment within a reasonable time after it is received by the holder.
Which instruments are covered under Section 74?	Negotiable instruments payable on demand.
From which point is reasonable time computed under Section 74?	It is computed from the time the instrument is received by the holder.
What is the subject matter of Section 75 of the Negotiable Instruments Act, 1881?	Section 75 deals with presentment by or to agent, representative of deceased, or assignee of insolvent.
To whom may presentment for acceptance or payment be made under Section 75?	It may be made to the duly authorized agent of the drawee, maker or acceptor, as the case may be.
Can presentment be made to an agent under Section 75?	Yes, presentment for acceptance or payment may be made to the duly authorized agent of the drawee, maker or acceptor.
To whom may presentment be made if the drawee, maker or acceptor has died under Section 75?	It may be made to his legal representative.
To whom may presentment be made if the drawee, maker or acceptor has been declared insolvent under Section 75?	It may be made to his assignee.
What is the subject matter of Section 75A of the Negotiable Instruments Act, 1881?	Section 75A deals with excuse for delay in presentment for acceptance or payment.
When is delay in presentment excused under Section 75A?	Delay in presentment for acceptance or payment is excused if the delay is caused by circumstances beyond the control of the holder and not imputable to his default, misconduct or negligence.
What are the conditions for excuse of delay under Section 75A?	The delay must be caused by circumstances beyond the control of the holder and must not be imputable to his default, misconduct or negligence.
Can delay caused by the holder’s negligence be excused under Section 75A?	No, delay imputable to the holder’s default, misconduct or negligence is not excused.
What must the holder do when the cause of delay ceases under Section 75A?	Presentment must be made within a reasonable time.
What is the effect of cessation of the cause of delay under Section 75A?	Once the cause of delay ceases to operate, presentment must be made within a reasonable time.
What is the subject matter of Section 76 of the Negotiable Instruments Act, 1881?	Section 76 deals with cases when presentment for payment is unnecessary.
What is the general rule under Section 76?	No presentment for payment is necessary, and the instrument is dishonoured at the due date for presentment, in the cases specified in Section 76.
What is the effect when Section 76 applies?	No presentment for payment is necessary and the instrument is dishonoured at the due date for presentment.
What is clause (a) of Section 76 concerned with?	Clause (a) deals with cases where the maker, drawee or acceptor prevents or makes presentment impossible.
When is presentment unnecessary under Section 76(a)?	Presentment is unnecessary if the maker, drawee or acceptor intentionally prevents the presentment of the instrument.
What is the effect if the maker, drawee or acceptor intentionally prevents presentment under Section 76(a)?	No presentment is necessary and the instrument is deemed dishonoured at the due date for presentment.
When is presentment unnecessary if the instrument is payable at the place of business under Section 76(a)?	If the instrument is payable at his place of business and he closes such place on a business day during the usual business hours.
What if the maker, drawee or acceptor closes his place of business during usual business hours under Section 76(a)?	Presentment becomes unnecessary and the instrument is dishonoured at the due date for presentment.
When is presentment unnecessary if the instrument is payable at some other specified place under Section 76(a)?	If neither he nor any person authorized to pay it attends at such place during the usual business hours.
What if no one attends at the specified place during usual business hours under Section 76(a)?	Presentment is unnecessary and the instrument is dishonoured at the due date for presentment.
When is presentment unnecessary if the instrument is not payable at any specified place under Section 76(a)?	If the maker, drawee or acceptor cannot after due search be found.
What is meant by the “due search” situation under Section 76(a)?	Where the instrument is not payable at any specified place and the maker, drawee or acceptor cannot after due search be found, presentment is unnecessary.
What is clause (b) of Section 76 concerned with?	Clause (b) deals with parties who have engaged to pay notwithstanding non-presentment.
When is presentment unnecessary under Section 76(b)?	As against any party sought to be charged therewith, if he has engaged to pay notwithstanding non-presentment.
Against whom can non-presentment be excused under Section 76(b)?	Against any party sought to be charged who has engaged to pay notwithstanding non-presentment.
What is the effect of an undertaking to pay notwithstanding non-presentment under Section 76(b)?	Presentment is unnecessary as against that party.
What is clause (c) of Section 76 concerned with?	Clause (c) deals with waiver after maturity by a party having knowledge of non-presentment.
When is presentment unnecessary under Section 76(c)?	As against any party if, after maturity, with knowledge that the instrument has not been presented, he makes part payment, or promises to pay, or otherwise waives the default in presentment.
What is the first circumstance of waiver under Section 76(c)?	After maturity, with knowledge of non-presentment, the party makes a part payment on account of the amount due on the instrument.
What is the second circumstance of waiver under Section 76(c)?	After maturity, with knowledge of non-presentment, the party promises to pay the amount due thereon in whole or in part.
What is the third circumstance of waiver under Section 76(c)?	After maturity, with knowledge of non-presentment, the party otherwise waives his right to take advantage of any default in presentment for payment.
Is part payment after maturity with knowledge of non-presentment relevant under Section 76(c)?	Yes, it dispenses with presentment as against that party.
Does a promise to pay after maturity with knowledge of non-presentment matter under Section 76(c)?	Yes, it makes presentment unnecessary as against that party.
Can waiver be express or implied under Section 76(c)?	Yes, any conduct by which the party otherwise waives his right to take advantage of default in presentment for payment is sufficient.
What is clause (d) of Section 76 concerned with?	Clause (d) deals with the case where the drawer could not suffer damage from want of presentment.
When is presentment unnecessary as against the drawer under Section 76(d)?	If the drawer could not suffer damage from the want of such presentment.
What is the rationale of Section 76(d)?	Presentment is unnecessary where the drawer could not be prejudiced by the omission of presentment.
What is the subject matter of Section 77 of the Negotiable Instruments Act, 1881?	Section 77 deals with the liability of a banker for negligently dealing with a bill presented for payment.
Which instrument is covered by Section 77?	A bill of exchange accepted payable at a specified bank.
What are the conditions for Section 77 to apply?	The bill must be accepted payable at a specified bank, duly presented there for payment, and dishonoured.
Where must the bill be presented under Section 77?	It must be duly presented for payment at the specified bank.
What must happen to the bill after presentment for Section 77 to apply?	It must be dishonoured.
What kind of conduct by the banker attracts liability under Section 77?	If the banker negligently or improperly keeps, deals with, or delivers back the bill.
What forms of misconduct are mentioned in Section 77?	Negligently or improperly keeping, dealing with, or delivering back the bill.
What additional requirement is necessary to fasten liability on the banker under Section 77?	The banker’s negligent or improper conduct must cause loss to the holder.
To whom is compensation payable under Section 77?	The banker must compensate the holder.
What is the extent of banker’s liability under Section 77?	He must compensate the holder for the loss caused by such negligent or improper conduct.
Can the banker be liable merely because the bill is dishonoured under Section 77?	No, liability arises only if after dishonour he negligently or improperly keeps, deals with, or delivers back the bill so as to cause loss to the holder.

CHAPTER-VI
OF PAYMENTAND INTEREST
What is the subject matter of Section 78 of the Negotiable Instruments Act, 1881?	Section 78 deals with to whom payment should be made.
To whom must payment be made under Section 78 in order to discharge the maker or acceptor?	Payment of the amount due on a promissory note, bill of exchange or cheque must be made to the holder of the instrument.
Which instruments are covered under Section 78?	Promissory notes, bills of exchange and cheques.
Whose discharge is contemplated under Section 78?	The discharge of the maker or acceptor.
Is Section 78 absolute in its operation?	No, it is subject to the provisions of Section 82, clause (c).
What is the effect of payment to the holder under Section 78?	It discharges the maker or acceptor.
What is the subject matter of Section 79 of the Negotiable Instruments Act, 1881?	Section 79 deals with interest when rate is specified.
When does Section 79 apply?	It applies when interest at a specified rate is expressly made payable on a promissory note or bill of exchange.
Which instruments are covered under Section 79?	Promissory notes and bills of exchange.
How is interest calculated under Section 79?	Interest shall be calculated at the rate specified on the amount of the principal money due thereon.
On what amount is interest calculated under Section 79?	It is calculated on the amount of the principal money due on the instrument.
From which date does interest run under Section 79?	It runs from the date of the instrument.
Until when is interest payable under Section 79?	It is payable until tender or realization of such amount, or until such date after the institution of a suit to recover such amount as the Court directs.
What discretion does the Court have under Section 79?	The Court may direct the date after institution of the suit up to which interest shall run.
What is the subject matter of Section 80 of the Negotiable Instruments Act, 1881?	Section 80 deals with interest when no rate is specified.
When does Section 80 apply?	It applies when no rate of interest is specified in the instrument.
What is the statutory rate of interest under Section 80?	Interest shall be calculated at the rate of eighteen per centum per annum.
Does any agreement relating to interest between parties override Section 80?	No, notwithstanding any agreement relating to interest between any parties to the instrument, interest shall be calculated at the statutory rate.
On what amount is interest calculated under Section 80?	It is calculated on the amount due on the instrument.
From which date does interest run under Section 80?	It runs from the date at which the same ought to have been paid by the party charged.
Until when is interest payable under Section 80?	It is payable until tender or realization of the amount due thereon, or until such date after the institution of a suit as the Court directs.
What discretion does the Court have under Section 80?	The Court may direct the date after institution of the suit up to which interest shall run.
What does the Explanation to Section 80 provide?	When the party charged is the indorser of an instrument dishonoured by non-payment, he is liable to pay interest only from the time that he receives notice of the dishonour.
When does an indorser become liable for interest under the Explanation to Section 80?	He becomes liable only from the time he receives notice of the dishonour.
Does an indorser pay interest from the original due date under Section 80?	No, in case of dishonour by non-payment, the indorser is liable for interest only from the time he receives notice of dishonour.
What is the subject matter of Section 81 of the Negotiable Instruments Act, 1881?	Section 81 deals with delivery of instrument on payment or indemnity in case of loss.
Who is entitled to the rights under Section 81(1)?	Any person liable to pay and called upon by the holder to pay the amount due on a promissory note, bill of exchange or cheque.
What right does the person liable have before payment under Section 81(1)?	Before payment, he is entitled to have the instrument shown to him.
What right does the person liable have on payment under Section 81(1)?	On payment, he is entitled to have the instrument delivered up to him.
What if the instrument is lost or cannot be produced under Section 81(1)?	The person liable is entitled to be indemnified against any further claim thereon against him.
Against what is indemnity granted under Section 81(1)?	Against any further claim on the instrument against the person liable.
Which instruments are covered under Section 81(1)?	Promissory notes, bills of exchange and cheques.
What does Section 81(2) provide regarding truncated cheques?	Where the cheque is an electronic image of a truncated cheque, even after payment the banker who received the payment is entitled to retain the truncated cheque.
Can the banker retain the truncated cheque after payment under Section 81(2)?	Yes, the banker who received the payment is entitled to retain the truncated cheque.
What does Section 81(3) provide?	A certificate issued on the foot of the printout of the electronic image of a truncated cheque by the banker who paid the instrument shall be prima facie proof of such payment.
What is the evidentiary value of the certificate under Section 81(3)?	It is prima facie proof of payment.
Who issues the certificate under Section 81(3)?	The banker who paid the instrument issues the certificate on the foot of the printout of the electronic image of the truncated cheque.

CHAPTER-VII
OF DISCHARGE FROM LIABILITY ON NOTES, BILLS AND CHEQUES
What is the subject matter of Section 82 of the Negotiable Instruments Act, 1881?	Section 82 deals with discharge from liability.
Who may be discharged from liability under Section 82?	The maker, acceptor or indorser respectively of a negotiable instrument may be discharged from liability thereon in the manner provided in Section 82.
What are the modes of discharge under Section 82?	The maker, acceptor or indorser may be discharged by cancellation, by release, or by payment in due course as specified in clauses (a), (b) and (c).
What does clause (a) of Section 82 deal with?	Clause (a) deals with discharge by cancellation.
When is an acceptor or indorser discharged by cancellation under Section 82(a)?	He is discharged to a holder thereof who cancels such acceptor’s or indorser’s name with intent to discharge him.
Is intention necessary for discharge by cancellation under Section 82(a)?	Yes, the holder must cancel the acceptor’s or indorser’s name with intent to discharge him.
Who can effect discharge by cancellation under Section 82(a)?	A holder of the instrument can effect discharge by cancellation.
Whose name may be cancelled under Section 82(a)?	The acceptor’s or indorser’s name may be cancelled.
To whom is the acceptor or indorser discharged by cancellation under Section 82(a)?	He is discharged to the holder who cancels his name and to all parties claiming under such holder.
What is the effect of cancellation under Section 82(a) on parties claiming under the holder?	The acceptor or indorser is also discharged as against all parties claiming under such holder.
Does Section 82(a) apply to the maker?	No, clause (a) expressly refers to cancellation of the acceptor’s or indorser’s name.
What does clause (b) of Section 82 deal with?	Clause (b) deals with discharge by release.
When is the maker, acceptor or indorser discharged by release under Section 82(b)?	He is discharged to a holder thereof who otherwise discharges such maker, acceptor or indorser.
Who may release the maker, acceptor or indorser under Section 82(b)?	A holder of the instrument may otherwise discharge such maker, acceptor or indorser.
To whom does the discharge by release operate under Section 82(b)?	It operates in favour of the holder who discharges him and all parties deriving title under such holder after notice of such discharge.
What is the effect of notice under Section 82(b)?	Parties deriving title under the holder after notice of such discharge are also bound by the release.
Against whom does release under Section 82(b) operate?	It operates against the holder who releases and against parties deriving title under such holder after notice of the discharge.
What does clause (c) of Section 82 deal with?	Clause (c) deals with discharge by payment.
When does discharge by payment arise under Section 82(c)?	It arises when the instrument is payable to bearer, or has been indorsed in blank, and the maker, acceptor or indorser makes payment in due course of the amount due thereon.
What are the conditions for discharge by payment under Section 82(c)?	The instrument must be payable to bearer or indorsed in blank, and payment in due course of the amount due thereon must be made by the maker, acceptor or indorser.
What kind of instrument is covered by Section 82(c)?	An instrument payable to bearer or an instrument which has been indorsed in blank.
Can payment under Section 82(c) discharge liability if the instrument is neither payable to bearer nor indorsed in blank?	No, clause (c) applies only if the instrument is payable to bearer or has been indorsed in blank.
What type of payment is required under Section 82(c)?	Payment in due course of the amount due on the instrument is required.
Who may make payment under Section 82(c)?	The maker, acceptor or indorser may make payment in due course.
To whom does discharge by payment under Section 82(c) extend?	It extends to all parties thereto.
What is the effect of payment in due course under Section 82(c)?	The maker, acceptor or indorser is discharged from liability to all parties thereto.
Does Section 82(c) require payment of the full amount due?	Yes, it requires payment in due course of the amount due thereon.
What is the subject matter of Section 83 of the Negotiable Instruments Act, 1881?	Section 83 deals with discharge by allowing the drawee more than forty-eight hours to accept.
When does Section 83 apply?	It applies when the holder of a bill of exchange allows the drawee more than forty-eight hours, exclusive of public holidays, to consider whether he will accept the bill.
What is the statutory time allowed to the drawee for deliberation under Section 83?	The drawee may be allowed forty-eight hours, exclusive of public holidays, to consider whether he will accept the bill.
What is the effect of allowing the drawee more than forty-eight hours under Section 83?	All previous parties not consenting to such allowance are discharged from liability to such holder.
Who are discharged under Section 83?	All previous parties not consenting to such allowance are discharged.
Is consent relevant under Section 83?	Yes, only previous parties not consenting to such allowance are discharged.
To whom are the previous parties discharged under Section 83?	They are discharged from liability to such holder.
Does Section 83 apply to all negotiable instruments?	No, it applies specifically to a bill of exchange.
What is the subject matter of Section 84 of the Negotiable Instruments Act, 1881?	Section 84 deals with the effect of non-presentment of a cheque within a reasonable time where the drawer is damaged thereby.
When is the drawer discharged under Section 84(1)?	Where a cheque is not presented for payment within a reasonable time of its issue, and the drawer or person on whose account it is drawn had the right, at the time when presentment ought to have been made, as between himself and the banker, to have the cheque paid and suffers actual damage through the delay, he is discharged to the extent of such damage.
Is mere delay enough to discharge the drawer under Section 84(1)?	No, delay must be beyond a reasonable time and the drawer or person on whose account it is drawn must suffer actual damage through the delay.
What are the conditions for discharge under Section 84(1)?	The cheque must not be presented within a reasonable time of its issue, the drawer or person on whose account it is drawn must have had the right as against the banker to have it paid when it ought to have been presented, and he must suffer actual damage through the delay.
To what extent is the drawer discharged under Section 84(1)?	He is discharged to the extent of the actual damage suffered.
How is the extent of discharge explained in Section 84(1)?	It is to the extent to which such drawer or person is a creditor of the banker to a larger amount than he would have been if the cheque had been paid.
What is the test of “reasonable time” under Section 84(2)?	Regard shall be had to the nature of the instrument, the usage of trade and of bankers, and the facts of the particular case.
What factors are relevant in determining reasonable time under Section 84(2)?	The nature of the instrument, the usage of trade and of bankers, and the facts of the particular case.
What right does the holder get under Section 84(3)?	The holder becomes a creditor, in lieu of such drawer or person, of the banker to the extent of such discharge and is entitled to recover the amount from him.
Whose place does the holder take under Section 84(3)?	The holder takes the place of the drawer or person on whose account the cheque is drawn, to the extent of the discharge.
Can the holder recover from the banker under Section 84(3)?	Yes, the holder is entitled to recover from the banker to the extent of the discharge.
What is the legal effect of illustration (a) to Section 84?	Where A draws a cheque for Rs. 1,000, has sufficient funds when the cheque ought to be presented, and the bank fails before presentment, the drawer is discharged, but the holder can prove against the bank for the amount of the cheque.
What is the legal effect of illustration (b) to Section 84?	Where A draws a cheque at Umballa on a bank in Calcutta and the bank fails before the cheque could be presented in ordinary course, A is not discharged because he has not suffered actual damage through delay in presentment.
What is the subject matter of Section 85 of the Negotiable Instruments Act, 1881?	Section 85 deals with cheques payable to order and cheques originally payable to bearer.
What does Section 85(1) provide?	Where a cheque payable to order purports to be endorsed by or on behalf of the payee, the drawee is discharged by payment in due course.
Which cheque is covered under Section 85(1)?	A cheque payable to order.
What is required for discharge under Section 85(1)?	The cheque must purport to be endorsed by or on behalf of the payee and the drawee must make payment in due course.
Who gets discharged under Section 85(1)?	The drawee is discharged by payment in due course.
Is the genuineness of endorsement the test under Section 85(1)?	No, if the cheque payable to order purports to be endorsed by or on behalf of the payee, the drawee is discharged by payment in due course.
What does Section 85(2) provide?	Where a cheque is originally expressed to be payable to bearer, the drawee is discharged by payment in due course to the bearer thereof, notwithstanding any endorsement whether in full or in blank appearing thereon, and notwithstanding that any such endorsement purports to restrict or exclude further negotiation.
Which cheque is covered under Section 85(2)?	A cheque originally expressed to be payable to bearer.
To whom may payment be made under Section 85(2)?	Payment may be made in due course to the bearer thereof.
What is the effect of endorsements on a bearer cheque under Section 85(2)?	The drawee is discharged by payment in due course to the bearer notwithstanding any endorsement in full or in blank and notwithstanding any endorsement purporting to restrict or exclude further negotiation.
Can restrictive endorsements affect the drawee’s discharge under Section 85(2)?	No, the drawee is still discharged by payment in due course to the bearer.
What is the subject matter of Section 85A of the Negotiable Instruments Act, 1881?	Section 85A deals with drafts drawn by one branch of a bank on another payable to order.
What is meant by “draft” under Section 85A?	It means an order to pay money drawn by one office of a bank upon another office of the same bank for a sum of money payable to order on demand.
What are the conditions for Section 85A to apply?	The draft must be drawn by one office of a bank upon another office of the same bank, for a sum of money, payable to order on demand, and it must purport to be endorsed by or on behalf of the payee.
What is the effect of Section 85A?	The bank is discharged by payment in due course.
Who is discharged under Section 85A?	The bank is discharged by payment in due course.
When is the bank discharged under Section 85A?	It is discharged where such draft payable to order on demand purports to be endorsed by or on behalf of the payee and payment is made in due course.
What is the subject matter of Section 86 of the Negotiable Instruments Act, 1881?	Section 86 deals with discharge of parties not consenting to a qualified or limited acceptance.
When does Section 86 apply?	It applies when the holder of a bill of exchange acquiesces in a qualified acceptance or in an acceptance limited in the manner specified in Section 86.
What is the general rule under Section 86?	All previous parties whose consent is not obtained to such acceptance are discharged as against the holder and those claiming under him, unless on notice given by the holder they assent to such acceptance.
Which instrument is covered under Section 86?	A bill of exchange.
What happens if the holder acquiesces in a qualified acceptance under Section 86?	All previous parties whose consent is not obtained are discharged as against the holder and those claiming under him, unless they assent after notice.
What happens if the holder acquiesces in an acceptance limited to part of the sum mentioned in the bill under Section 86?	All previous parties whose consent is not obtained are discharged as against the holder and those claiming under him, unless they assent after notice.
What happens if the holder acquiesces in an acceptance substituting a different place for payment under Section 86?	All previous parties whose consent is not obtained are discharged as against the holder and those claiming under him, unless they assent after notice.
What happens if the holder acquiesces in an acceptance substituting a different time for payment under Section 86?	All previous parties whose consent is not obtained are discharged as against the holder and those claiming under him, unless they assent after notice.
What happens if the holder acquiesces in an acceptance not signed by all drawees where drawees are not partners under Section 86?	All previous parties whose consent is not obtained are discharged as against the holder and those claiming under him, unless they assent after notice.
Who are discharged under Section 86?	All previous parties whose consent is not obtained to such acceptance.
Against whom are previous parties discharged under Section 86?	They are discharged as against the holder and those claiming under him.
How can previous parties avoid discharge under Section 86?	If on notice given by the holder they assent to such acceptance, they are not discharged.
Is notice relevant under Section 86?	Yes, if notice is given by the holder and the previous parties assent to such acceptance, they remain liable.
What does the Explanation to Section 86 define?	It defines when an acceptance is qualified.
When is an acceptance qualified under Explanation (a) to Section 86?	An acceptance is qualified where it is conditional, declaring the payment to be dependent on the happening of an event therein stated.
What is a conditional acceptance under Section 86?	It is an acceptance declaring payment to be dependent on the happening of a stated event.
When is an acceptance qualified under Explanation (b) to Section 86?	It is qualified where it undertakes the payment of part only of the sum ordered to be paid.
What is a partial acceptance under Section 86?	It is an acceptance undertaking payment of part only of the sum ordered to be paid.
When is an acceptance qualified under Explanation (c) where no place of payment is specified in the order?	It is qualified where it undertakes payment at a specified place, and not otherwise or elsewhere.
When is an acceptance qualified under Explanation (c) where a place of payment is specified in the order?	It is qualified where it undertakes payment at some other place and not otherwise or elsewhere.
What is a local qualified acceptance under Section 86?	It is an acceptance restricting payment to a specified place only, where either no place was originally specified or a different place was specified in the order.
When is an acceptance qualified under Explanation (d) to Section 86?	It is qualified where it undertakes payment at a time other than that at which under the order it would be legally due.
What is a qualified acceptance as to time under Section 86?	It is an acceptance undertaking payment at a time different from the legal due date under the order.
Does Section 86 apply only to expressly “qualified” acceptances?	No, it also applies to an acceptance limited to part of the sum, substituting a different place or time for payment, or not signed by all drawees where drawees are not partners.
What is the effect of acceptance by fewer than all drawees where drawees are not partners under Section 86?	If the holder acquiesces in such acceptance, all previous parties whose consent is not obtained are discharged against the holder and those claiming under him, unless they assent after notice.
What is the subject matter of Section 87 of the Negotiable Instruments Act, 1881?	Section 87 deals with the effect of material alteration of a negotiable instrument.
What is the general rule under Section 87 regarding material alteration?	Any material alteration of a negotiable instrument renders the same void as against anyone who is a party thereto at the time of making such alteration and does not consent thereto.
Against whom does a materially altered instrument become void under Section 87?	It becomes void as against anyone who was a party to the instrument at the time of making such alteration and did not consent thereto.
Is every material alteration fatal under Section 87?	No, a material alteration does not render the instrument void if it was made in order to carry out the common intention of the original parties.
What is the exception to the rule of voidness under Section 87?	A material alteration does not avoid the instrument if it was made in order to carry out the common intention of the original parties.
What is meant by the “common intention” exception under Section 87?	A material alteration made to carry out the common intention of the original parties does not render the instrument void.
What is the effect of alteration by an indorsee under Section 87?	Any such material alteration, if made by an indorsee, discharges his indorser from all liability to him in respect of the consideration thereof.
Who is discharged when a material alteration is made by an indorsee under Section 87?	The indorser is discharged from all liability to the indorsee in respect of the consideration thereof.
What is the liability consequence for the indorser when the indorsee materially alters the instrument under Section 87?	The indorser is discharged from all liability to the indorsee in respect of the consideration thereof.
Are the provisions of Section 87 absolute?	No, the provisions of Section 87 are subject to Sections 20, 49, 86 and 125.
To which sections is Section 87 expressly made subject?	Section 87 is subject to Sections 20, 49, 86 and 125 of the Negotiable Instruments Act, 1881.
What is the subject matter of Section 88 of the Negotiable Instruments Act, 1881?	Section 88 deals with the liability of an acceptor or indorser notwithstanding previous alteration of the instrument.
What is the rule under Section 88?	An acceptor or indorser of a negotiable instrument is bound by his acceptance or indorsement notwithstanding any previous alteration of the instrument.
Does a previous alteration absolve an acceptor under Section 88?	No, an acceptor is bound by his acceptance notwithstanding any previous alteration of the instrument.
Does a previous alteration absolve an indorser under Section 88?	No, an indorser is bound by his indorsement notwithstanding any previous alteration of the instrument.
What is the subject matter of Section 89 of the Negotiable Instruments Act, 1881?	Section 89 deals with payment of an instrument on which material alteration is not apparent and with apparent tenor of truncated cheque images.
What is the rule under Section 89(1) regarding a materially altered instrument where alteration is not apparent?	Where a promissory note, bill of exchange or cheque has been materially altered but does not appear to have been so altered, payment by a person or banker liable to pay, according to the apparent tenor thereof at the time of payment and otherwise in due course, discharges such person or banker from all liability thereon.
Which instruments are covered under Section 89(1)?	A promissory note, bill of exchange or cheque.
What is the condition for protection under Section 89(1) in case of material alteration?	The instrument must have been materially altered but must not appear to have been so altered at the time of payment.
What is the protection available to the payer under Section 89(1)?	The person or banker liable to pay and paying according to the apparent tenor at the time of payment and otherwise in due course is discharged from all liability thereon.
What is meant by payment according to “apparent tenor” under Section 89(1)?	It means payment according to the apparent tenor of the instrument at the time of payment.
Is due course required for protection under Section 89(1)?	Yes, payment must be according to the apparent tenor at the time of payment and otherwise in due course.
What is the rule under Section 89(1) regarding a cheque whose crossing is not apparent?	Where a cheque is presented for payment which does not at the time of presentation appear to be crossed or to have had a crossing which has been obliterated, payment thereof in due course according to its apparent tenor discharges the person or banker from all liability thereon.
Does obliteration of crossing affect the protection under Section 89(1)?	No, if the cheque does not at presentation appear to be crossed or to have had a crossing obliterated, payment in due course according to apparent tenor protects the payer.
Can payment under Section 89(1) be questioned because the instrument was altered or the cheque crossed?	No, such payment shall not be questioned by reason of the instrument having been altered or the cheque crossed.
What is the rule under Section 89(2) regarding truncated cheque images?	Where the cheque is an electronic image of a truncated cheque, any difference in apparent tenor of such electronic image and the truncated cheque shall be a material alteration.
What amounts to material alteration under Section 89(2) in case of a truncated cheque?	Any difference in apparent tenor between the electronic image of the truncated cheque and the truncated cheque itself.
Whose duty is it under Section 89(2) to ensure exactness of the electronic image of a truncated cheque?	It is the duty of the bank or the clearing house, as the case may be, to ensure the exactness of the apparent tenor of the electronic image while truncating and transmitting the image.
At what stage must exactness be ensured under Section 89(2)?	Exactness must be ensured while truncating and transmitting the electronic image of the truncated cheque.
What is the rule under Section 89(3) regarding receipt of transmitted electronic image?	Any bank or clearing house receiving a transmitted electronic image of a truncated cheque shall verify from the transmitting party that the image transmitted and received is exactly the same.
Who must verify the exactness of the transmitted image under Section 89(3)?	Any bank or clearing house receiving the transmitted electronic image must verify it from the transmitting party.
What is the subject matter of Section 90 of the Negotiable Instruments Act, 1881?	Section 90 deals with extinguishment of rights of action on a bill in the acceptor's hands.
When are rights of action on a bill extinguished under Section 90?	If a bill of exchange which has been negotiated is, at or after maturity, held by the acceptor in his own right, all rights of action thereon are extinguished.
What are the conditions for extinguishment under Section 90?	The instrument must be a bill of exchange, it must have been negotiated, and at or after maturity it must be held by the acceptor in his own right.
Which instrument is specifically covered by Section 90?	A bill of exchange which has been negotiated.
Does Section 90 apply before maturity?	No, Section 90 applies when the bill is held by the acceptor at or after maturity.
Who must hold the bill for Section 90 to operate?	The acceptor must hold the bill in his own right.
What is the effect when the acceptor holds the negotiated bill at or after maturity in his own right?	All rights of action on the bill are extinguished.

CHAPTER-VIII
OF NOTICE OF DISHONOUR
What is the subject matter of Section 91 of the Negotiable Instruments Act, 1881?	Section 91 deals with dishonour of a bill of exchange by non-acceptance.
When is a bill of exchange said to be dishonoured by non-acceptance under Section 91?	A bill of exchange is said to be dishonoured by non-acceptance when the drawee, or one of several drawees not being partners, makes default in acceptance upon being duly required to accept the bill.
Can a bill be dishonoured by non-acceptance where presentment is excused under Section 91?	Yes, where presentment is excused and the bill is not accepted, it is dishonoured by non-acceptance.
Who may cause dishonour by non-acceptance under Section 91?	The drawee, or one of several drawees not being partners, by making default in acceptance.
What is the requirement before default in acceptance under Section 91?	The drawee must be duly required to accept the bill, unless presentment is excused.
Does Section 91 apply where there are several drawees not being partners?	Yes, if one of several drawees not being partners makes default in acceptance upon being duly required, the bill is dishonoured by non-acceptance.
What is the effect where the drawee is incompetent to contract under Section 91?	The bill may be treated as dishonoured.
What is the effect of a qualified acceptance under Section 91?	The bill may be treated as dishonoured.
Can a bill be treated as dishonoured if the acceptance is qualified under Section 91?	Yes, where the acceptance is qualified, the bill may be treated as dishonoured.
What is the subject matter of Section 92 of the Negotiable Instruments Act, 1881?	Section 92 deals with dishonour of a promissory note, bill of exchange or cheque by non-payment.
When is a promissory note dishonoured by non-payment under Section 92?	A promissory note is dishonoured by non-payment when the maker of the note makes default in payment upon being duly required to pay the same.
When is a bill of exchange dishonoured by non-payment under Section 92?	A bill of exchange is dishonoured by non-payment when the acceptor of the bill makes default in payment upon being duly required to pay the same.
When is a cheque dishonoured by non-payment under Section 92?	A cheque is dishonoured by non-payment when the drawee of the cheque makes default in payment upon being duly required to pay the same.
Which instruments are covered under Section 92?	A promissory note, bill of exchange and cheque.
Who makes default in payment under Section 92 in case of a promissory note?	The maker of the note.
Who makes default in payment under Section 92 in case of a bill of exchange?	The acceptor of the bill.
Who makes default in payment under Section 92 in case of a cheque?	The drawee of the cheque.
What is the subject matter of Section 93 of the Negotiable Instruments Act, 1881?	Section 93 deals with by whom and to whom notice of dishonour should be given.
When does Section 93 become applicable?	Section 93 applies when a promissory note, bill of exchange or cheque is dishonoured by non-acceptance or non-payment.
Who must give notice of dishonour under Section 93?	The holder thereof, or some party thereto who remains liable thereon, must give notice.
What notice is required under Section 93?	Notice that the instrument has been dishonoured by non-acceptance or non-payment must be given.
To whom must notice be given under Section 93?	Notice must be given to all other parties whom the holder seeks to make severally liable thereon, and to some one of several parties whom he seeks to make jointly liable thereon.
Must notice be given to all parties sought to be made severally liable under Section 93?	Yes, notice must be given to all other parties whom the holder seeks to make severally liable thereon.
Must notice be given to all joint parties under Section 93?	No, notice to some one of several parties whom the holder seeks to make jointly liable is sufficient.
Can a party other than the holder give notice under Section 93?	Yes, some party to the instrument who remains liable thereon may give notice.
Is notice to the maker of a dishonoured promissory note necessary under Section 93?	No, nothing in Section 93 renders it necessary to give notice to the maker of the dishonoured promissory note.
Is notice to the drawee of a dishonoured bill of exchange necessary under Section 93?	No, nothing in Section 93 renders it necessary to give notice to the drawee of the dishonoured bill of exchange.
Is notice to the acceptor of a dishonoured bill of exchange necessary under Section 93?	No, nothing in Section 93 renders it necessary to give notice to the acceptor of the dishonoured bill of exchange.
Is notice to the drawee of a dishonoured cheque necessary under Section 93?	No, nothing in Section 93 renders it necessary to give notice to the drawee of the dishonoured cheque.
What is the statutory exception in Section 93 regarding notice of dishonour?	It is not necessary to give notice to the maker of the dishonoured promissory note or the drawee or acceptor of the dishonoured bill of exchange or cheque.
What is the subject matter of Section 94 of the Negotiable Instruments Act, 1881?	Section 94 deals with the mode in which notice of dishonour may be given.
To whom may notice of dishonour be given under Section 94?	Notice of dishonour may be given to a duly authorized agent of the person to whom it is required to be given.
Can notice of dishonour be given to an agent under Section 94?	Yes, notice may be given to a duly authorized agent of the person to whom it is required to be given.
To whom may notice be given if the person entitled to receive it has died under Section 94?	It may be given to his legal representative.
To whom may notice be given if the person entitled to receive it has been declared insolvent under Section 94?	It may be given to his assignee.
Can notice of dishonour be oral under Section 94?	Yes, notice of dishonour may be oral.
Can notice of dishonour be written under Section 94?	Yes, notice of dishonour may be written.
Can written notice of dishonour be sent by post under Section 94?	Yes, if written, it may be sent by post.
Is any particular form prescribed for notice of dishonour under Section 94?	No, notice may be in any form.
What is the essential requirement of notice under Section 94?	It must inform the party to whom it is given, either in express terms or by reasonable intendment, that the instrument has been dishonoured, in what way, and that he will be held liable thereon.
What must the notice communicate under Section 94?	It must communicate that the instrument has been dishonoured, the manner of dishonour, and that the recipient will be held liable thereon.
Is express language mandatory in notice under Section 94?	No, the notice may inform the party either in express terms or by reasonable intendment.
Within what time must notice of dishonour be given under Section 94?	It must be given within a reasonable time after dishonour.
From what point is reasonable time counted under Section 94?	Reasonable time is counted after dishonour.
Where must notice of dishonour be given under Section 94?	It must be given at the place of business of the party intended, or if he has no place of business, at his residence.
Where should notice be served if the party has no place of business under Section 94?	It should be given at the residence of the party for whom it is intended.
What is the effect of postal miscarriage under Section 94?	If the notice is duly directed and sent by post and miscarries, such miscarriage does not render the notice invalid.
When does postal miscarriage not invalidate notice under Section 94?	When the notice is duly directed and sent by post.
What is the subject matter of Section 95 of the Negotiable Instruments Act, 1881?	Section 95 deals with the duty of a party receiving notice of dishonour to transmit notice to prior parties.
What must a party receiving notice of dishonour do under Section 95?	He must, in order to render any prior party liable to himself, give notice of dishonour to such party within a reasonable time.
Why must a party receiving notice give further notice under Section 95?	He must do so in order to render any prior party liable to himself.
Within what time must notice be transmitted under Section 95?	It must be given within a reasonable time.
What is the exception under Section 95 to the duty to transmit notice?	No further notice is necessary if such prior party otherwise receives due notice as provided by Section 93.
When is further notice by the receiving party unnecessary under Section 95?	When the prior party otherwise receives due notice as provided by Section 93.
What is the subject matter of Section 96 of the Negotiable Instruments Act, 1881?	Section 96 deals with the time available to an agent for presentment and the principal for giving notice of dishonour.
What is the rule under Section 96 when the instrument is deposited with an agent for presentment?	The agent is entitled to the same time to give notice to his principal as if he were the holder giving notice of dishonour, and the principal is entitled to a further like period to give notice of dishonour.
What time is available to the agent under Section 96?	The agent is entitled to the same time to give notice to his principal as if he were the holder giving notice of dishonour.
What time is available to the principal under Section 96?	The principal is entitled to a further like period to give notice of dishonour.
Does Section 96 give separate time periods to the agent and principal?	Yes, the agent gets the holder’s period to notify the principal, and the principal gets a further like period to notify others.
What is the subject matter of Section 97 of the Negotiable Instruments Act, 1881?	Section 97 deals with sufficiency of notice where the party to whom notice is dispatched is dead.
When is notice sufficient under Section 97?	When the party to whom notice of dishonour is dispatched is dead, but the party dispatching the notice is ignorant of his death.
Does ignorance of death protect the sender under Section 97?	Yes, if the sender is ignorant of the death, the notice is sufficient.
What is the subject matter of Section 98 of the Negotiable Instruments Act, 1881?	Section 98 deals with cases when notice of dishonour is unnecessary.
What is the general rule under Section 98?	No notice of dishonour is necessary in the cases specified in clauses (a) to (g) of Section 98.
When is notice of dishonour unnecessary under Section 98(a)?	When it is dispensed with by the party entitled thereto.
Can notice be waived under Section 98(a)?	Yes, notice is unnecessary when dispensed with by the party entitled thereto.
When is notice of dishonour unnecessary under Section 98(b)?	In order to charge the drawer, when he has countermanded payment.
Is notice necessary to charge a drawer who has countermanded payment under Section 98(b)?	No, notice is unnecessary where the drawer has countermanded payment.
When is notice of dishonour unnecessary under Section 98(c)?	When the party charged could not suffer damage for want of notice.
What is the “no damage” exception under Section 98(c)?	Notice is unnecessary when the party charged could not suffer damage for want of notice.
When is notice of dishonour unnecessary under Section 98(d)?	When the party entitled to notice cannot after due search be found, or the party bound to give notice is, for any other reason, unable without any fault of his own to give it.
Is notice necessary if the party entitled cannot be found after due search under Section 98(d)?	No, notice is unnecessary if the party entitled to notice cannot after due search be found.
Is notice necessary if the party bound to give notice is unable without fault to give it under Section 98(d)?	No, notice is unnecessary where he is unable without any fault of his own to give it.
When is notice of dishonour unnecessary under Section 98(e)?	To charge the drawers, when the acceptor is also a drawer.
Is notice necessary to charge drawers when the acceptor is also a drawer under Section 98(e)?	No, notice is unnecessary in such a case.
When is notice of dishonour unnecessary under Section 98(f)?	In the case of a promissory note which is not negotiable.
Is notice necessary in case of a non-negotiable promissory note under Section 98(f)?	No, notice is unnecessary in the case of a promissory note which is not negotiable.
When is notice of dishonour unnecessary under Section 98(g)?	When the party entitled to notice, knowing the facts, promises unconditionally to pay the amount due on the instrument.
What is the effect of an unconditional promise to pay under Section 98(g)?	Notice of dishonour becomes unnecessary if the party entitled to notice, knowing the facts, promises unconditionally to pay the amount due on the instrument.

CHAPTER-IX
OF NOTING AND PROTEST
What is the subject matter of Section 99 of the Negotiable Instruments Act, 1881?	Section 99 deals with noting of a dishonoured promissory note or bill of exchange.
When does Section 99 apply?	Section 99 applies when a promissory note or bill of exchange has been dishonoured by non-acceptance or non-payment.
Which instruments are covered under Section 99?	A promissory note or bill of exchange dishonoured by non-acceptance or non-payment.
What may the holder do under Section 99?	The holder may cause such dishonour to be noted by a notary public.
Who may cause the dishonour to be noted under Section 99?	The holder of the dishonoured promissory note or bill of exchange.
By whom must noting be made under Section 99?	Noting must be made by a notary public.
Where may the dishonour be noted under Section 99?	It may be noted upon the instrument, or upon a paper attached thereto, or partly upon each.
Can noting be made partly on the instrument and partly on an attached paper under Section 99?	Yes, the dishonour may be noted partly upon the instrument and partly upon a paper attached thereto.
Within what time must noting be made under Section 99?	The note must be made within a reasonable time after dishonour.
From what point is reasonable time counted for noting under Section 99?	Reasonable time is counted after dishonour.
What must the note specify under Section 99?	It must specify the date of dishonour, the reason, if any, assigned for such dishonour, or, if the instrument has not been expressly dishonoured, the reason why the holder treats it as dishonoured, and the notary's charges.
Is the date of dishonour required in noting under Section 99?	Yes, the note must specify the date of dishonour.
Must the reason for dishonour be mentioned in noting under Section 99?	Yes, the reason, if any, assigned for such dishonour must be specified.
What must be stated if the instrument has not been expressly dishonoured under Section 99?	The note must specify the reason why the holder treats it as dishonoured.
Are the notary's charges required to be mentioned in noting under Section 99?	Yes, the note must specify the notary's charges.
What is the subject matter of Section 100 of the Negotiable Instruments Act, 1881?	Section 100 deals with protest and protest for better security.
When does Section 100 apply in relation to protest?	Section 100 applies when a promissory note or bill of exchange has been dishonoured by non-acceptance or non-payment.
Which instruments are covered under the first part of Section 100?	A promissory note or bill of exchange dishonoured by non-acceptance or non-payment.
What may the holder do under Section 100 after dishonour?	The holder may, within a reasonable time, cause such dishonour to be noted and certified by a notary public.
Within what time may protest be caused under Section 100?	The holder may cause such dishonour to be noted and certified within a reasonable time.
By whom must the dishonour be noted and certified under Section 100?	It must be noted and certified by a notary public.
What is a protest under Section 100?	The certificate by a notary public noting and certifying such dishonour is called a protest.
What is the meaning of “protest” under Section 100?	Protest means the notarial certificate of the dishonour of a promissory note or bill of exchange.
What is the subject matter of the second paragraph of Section 100?	It deals with protest for better security.
When may a protest for better security be made under Section 100?	When the acceptor of a bill of exchange has become insolvent, or his credit has been publicly impeached, before the maturity of the bill.
Which instrument is specifically covered for protest for better security under Section 100?	A bill of exchange.
What are the conditions for protest for better security under Section 100?	The acceptor of the bill must have become insolvent or his credit must have been publicly impeached before the maturity of the bill.
What may the holder do first in case of protest for better security under Section 100?	The holder may, within a reasonable time, cause a notary public to demand better security of the acceptor.
Who demands better security under Section 100?	A notary public, at the instance of the holder, demands better security of the acceptor.
What happens if better security is refused under Section 100?	On refusal, the holder may, within a reasonable time, cause such facts to be noted and certified as aforesaid.
Within what time must the facts be noted and certified after refusal under Section 100?	They must be noted and certified within a reasonable time.
What is a protest for better security under Section 100?	The certificate noting and certifying the demand for better security and its refusal is called a protest for better security.
When must the acceptor’s insolvency or impeached credit occur for protest for better security under Section 100?	It must occur before the maturity of the bill.
What is the subject matter of Section 101 of the Negotiable Instruments Act, 1881?	Section 101 deals with the contents of a protest under Section 100.
What is mandatory under Section 101?	A protest under Section 100 must contain the particulars specified in clauses (a) to (f) of Section 101.
What must a protest contain under Section 101(a)?	It must contain either the instrument itself, or a literal transcript of the instrument and of everything written or printed thereupon.
Can a protest contain a transcript instead of the instrument itself under Section 101(a)?	Yes, it may contain a literal transcript of the instrument and of everything written or printed thereupon.
What must a protest contain under Section 101(b)?	It must contain the name of the person for whom and against whom the instrument has been protested.
Whose names must be stated in a protest under Section 101(b)?	The names of the person for whom and against whom the instrument has been protested.
What must a protest contain under Section 101(c)?	It must contain a statement that payment or acceptance, or better security, as the case may be, has been demanded of such person by the notary public, the terms of his answer, if any, or a statement that he gave no answer, or that he could not be found.
What demand must be recorded in a protest under Section 101(c)?	The protest must state that payment or acceptance, or better security, as the case may be, has been demanded by the notary public.
Must the answer of the person proceeded against be recorded under Section 101(c)?	Yes, the terms of his answer, if any, must be stated, or it must be stated that he gave no answer or could not be found.
What must a protest contain under Section 101(d) when the note or bill has been dishonoured?	It must contain the place and time of dishonour.
What must a protest contain under Section 101(d) when better security has been refused?	It must contain the place and time of refusal.
What must a protest contain under Section 101(e)?	It must contain the subscription of the notary public making the protest.
Is the signature or subscription of the notary public necessary under Section 101(e)?	Yes, the protest must contain the subscription of the notary public making the protest.
What must a protest contain under Section 101(f)?	In the event of an acceptance for honour or payment for honour, it must contain the name of the person by whom, of the person for whom, and the manner in which, such acceptance or payment was offered and effected.
When does Section 101(f) become relevant?	It becomes relevant in the event of an acceptance for honour or of a payment for honour.
What additional particulars are required in case of acceptance for honour under Section 101(f)?	The protest must state the name of the person by whom, the person for whom, and the manner in which such acceptance was offered and effected.
What additional particulars are required in case of payment for honour under Section 101(f)?	The protest must state the name of the person by whom, the person for whom, and the manner in which such payment was offered and effected.
How may the notary public make the demand under the proviso to Section 101?	The notary public may make the demand either in person or by his clerk or, where authorized by agreement or usage, by registered letter.
Can the notary public’s clerk make the demand under Section 101?	Yes, the demand may be made by the notary public’s clerk.
When can demand be made by registered letter under Section 101?	Where authorized by agreement or usage, the notary public may make the demand by registered letter.
What is the subject matter of Section 102 of the Negotiable Instruments Act, 1881?	Section 102 deals with notice of protest.
When does Section 102 apply?	Section 102 applies when a promissory note or bill of exchange is required by law to be protested.
What notice must be given under Section 102?	Notice of such protest must be given instead of notice of dishonour.
How is notice of protest to be given under Section 102?	It must be given in the same manner and subject to the same conditions as notice of dishonour.
Does Section 102 substitute notice of protest for notice of dishonour?	Yes, where protest is required by law, notice of protest must be given instead of notice of dishonour.
Who may give notice of protest under Section 102?	The notice may be given by the notary public who makes the protest.
Can the notary public give notice of protest under Section 102?	Yes, the notary public who makes the protest may give the notice.
What is the subject matter of Section 103 of the Negotiable Instruments Act, 1881?	Section 103 deals with protest for non-payment after dishonour by non-acceptance.
Which bills are covered under Section 103?	All bills of exchange drawn payable at some other place than the place mentioned as the residence of the drawee and dishonoured by non-acceptance.
What is the rule under Section 103?	Such bills may, without further presentment to the drawee, be protested for non-payment in the place specified for payment, unless paid before or at maturity.
Is further presentment to the drawee necessary under Section 103?	No, such bills may be protested for non-payment without further presentment to the drawee.
Where may the bill be protested for non-payment under Section 103?	It may be protested for non-payment in the place specified for payment.
What is the exception under Section 103?	The bill cannot be protested for non-payment under this section if it is paid before or at maturity.
What is the subject matter of Section 104 of the Negotiable Instruments Act, 1881?	Section 104 deals with protest of foreign bills.
What is the rule under Section 104?	Foreign bills of exchange must be protested for dishonour when such protest is required by the law of the place where they are drawn.
When is protest compulsory for foreign bills under Section 104?	It is compulsory when the law of the place where the foreign bill is drawn requires protest for dishonour.
Which instrument is covered under Section 104?	Foreign bills of exchange.
What is the subject matter of Section 104A of the Negotiable Instruments Act, 1881?	Section 104A deals with when noting is equivalent to protest.
When is noting sufficient under Section 104A?	Where a bill or note is required to be protested within a specified time or before some further proceeding is taken, it is sufficient that the bill or note has been noted for protest before the expiration of the specified time or the taking of the proceeding.
What is the legal effect of timely noting under Section 104A?	Timely noting is sufficient compliance where the Act requires protest within a specified time or before a further proceeding.
Can formal protest be extended later under Section 104A?	Yes, the formal protest may be extended at any time thereafter as of the date of the noting.
From what date does the later formal protest operate under Section 104A?	It operates as of the date of the noting.
Is actual protest within the specified time always necessary under Section 104A?	No, it is sufficient if the bill or note has been noted for protest within the specified time or before the further proceeding.

CHAPTER-X
OF REASONABLE TIME
What is the subject matter of Section 105 of the Negotiable Instruments Act, 1881?	Section 105 deals with determination of reasonable time for presentment, notice of dishonour and noting.
For what purposes does Section 105 determine reasonable time?	It determines reasonable time for presentment for acceptance or payment, for giving notice of dishonour and for noting.
What factors are relevant under Section 105 in determining reasonable time?	Regard shall be had to the nature of the instrument and the usual course of dealing with respect to similar instruments.
Is the nature of the instrument relevant under Section 105?	Yes, the nature of the instrument is a relevant factor in determining reasonable time.
Is usage or course of dealing relevant under Section 105?	Yes, the usual course of dealing with respect to similar instruments is relevant.
Are public holidays included in calculating reasonable time under Section 105?	No, public holidays shall be excluded in calculating such time.
How are public holidays treated under Section 105?	Public holidays are excluded while calculating reasonable time.
What is the subject matter of Section 106 of the Negotiable Instruments Act, 1881?	Section 106 deals with reasonable time of giving notice of dishonour.
What is the rule under the first paragraph of Section 106?	If the holder and the party to whom notice of dishonour is given carry on business or live in different places, notice is given within a reasonable time if it is dispatched by the next post or on the day next after the day of dishonour.
When are parties treated as being in different places under Section 106?	When the holder and the party to whom notice of dishonour is given carry on business or live, as the case may be, in different places.
What is reasonable time for notice where parties are in different places under Section 106?	Notice is within reasonable time if dispatched by the next post or on the day next after the day of dishonour.
What is the subject matter of the second paragraph of Section 106?	It deals with reasonable time for notice of dishonour where the holder and the notified party are in the same place.
What is the rule where the parties are in the same place under Section 106?	Notice is given within a reasonable time if it is dispatched in time to reach its destination on the day next after the day of dishonour.
When are parties treated as being in the same place under Section 106?	When the holder and the party to whom notice of dishonour is given carry on business or live in the same place.
What is reasonable time for notice where parties are in the same place under Section 106?	Notice is within reasonable time if dispatched in time to reach its destination on the day next after the day of dishonour.
Does Section 106 distinguish between same place and different place situations?	Yes, it lays down separate rules for parties in different places and parties in the same place.
What is the subject matter of Section 107 of the Negotiable Instruments Act, 1881?	Section 107 deals with reasonable time for transmitting notice of dishonour by a party receiving such notice.
Who is covered under Section 107?	A party receiving notice of dishonour who seeks to enforce his right against a prior party.
What is the rule under Section 107?	Such party transmits the notice within a reasonable time if he transmits it within the same time after its receipt as he would have had to give notice if he had been the holder.
How is reasonable time calculated under Section 107?	It is calculated by giving the receiving party the same time after receipt of notice as he would have had to give notice if he had been the holder.
What is the standard for transmission by an intermediate party under Section 107?	The intermediate party must transmit within the same period after receipt as a holder would have had for giving notice.

CHAPTER-XI
OF ACCEPTANCE AND PAYMENT FOR HONOUR AND REFERENCE IN CASE OF NEED
What is the subject matter of Section 108 of the Negotiable Instruments Act, 1881?	Section 108 deals with acceptance for honour.
When does Section 108 apply?	Section 108 applies when a bill of exchange has been noted or protested for non-acceptance or for better security.
Which instrument is covered under Section 108?	A bill of exchange.
What is the precondition for acceptance for honour under Section 108?	The bill of exchange must have been noted or protested for non-acceptance or for better security.
Who may accept for honour under Section 108?	Any person not being a party already liable thereon may accept for honour.
Can a person already liable on the bill accept for honour under Section 108?	No, only a person not already liable on the bill may accept for honour.
Is the holder’s consent necessary under Section 108?	Yes, acceptance for honour may be made only with the consent of the holder.
How must acceptance for honour be made under Section 108?	It must be made by writing on the bill.
For whose honour may acceptance be made under Section 108?	It may be made for the honour of any party to the bill.
What is the subject matter of Section 109 of the Negotiable Instruments Act, 1881?	Section 109 deals with the mode in which acceptance for honour must be made.
How must a person desiring to accept for honour act under Section 109?	He must, by writing on the bill under his hand, declare that he accepts under protest the protested bill for the honour of the drawer or of a particular indorser whom he names, or generally for honour.
Is writing mandatory under Section 109?	Yes, the person must write on the bill under his hand.
What declaration is required under Section 109?	The acceptor must declare that he accepts under protest the protested bill.
For whose honour may the declaration be made under Section 109?	It may be for the honour of the drawer, or of a particular indorser named by him, or generally for honour.
Can acceptance for honour be made generally under Section 109?	Yes, the acceptor may declare that he accepts generally for honour.
What is the subject matter of Section 110 of the Negotiable Instruments Act, 1881?	Section 110 deals with acceptance for honour not specifying for whose honour it is made.
What is the rule under Section 110?	Where the acceptance does not express for whose honour it is made, it shall be deemed to be made for the honour of the drawer.
What is the deemed rule if acceptance for honour is unspecified under Section 110?	It is deemed to be made for the honour of the drawer.
What is the subject matter of Section 111 of the Negotiable Instruments Act, 1881?	Section 111 deals with the liability of an acceptor for honour.
To whom does an acceptor for honour bind himself under Section 111?	He binds himself to all parties subsequent to the party for whose honour he accepts.
What is the liability of an acceptor for honour under Section 111?	He binds himself to pay the amount of the bill to all parties subsequent to the party for whose honour he accepts if the drawee does not pay.
When does the liability of the acceptor for honour arise under Section 111?	It arises if the drawee does not pay the amount of the bill.
Who may claim against the acceptor for honour under Section 111?	All parties subsequent to the party for whose honour he accepts may claim against him.
Who must compensate the acceptor for honour under Section 111?	The party for whose honour he accepts and all prior parties are liable in their respective capacities to compensate him.
What may the acceptor for honour recover under Section 111?	He may be compensated for all loss or damage sustained by him in consequence of such acceptance.
Is the acceptor for honour immediately liable to the holder under Section 111?	No, he is not liable to the holder unless the bill is presented, or where necessary forwarded for presentment, not later than the day next after the day of its maturity.
What is the condition in the proviso to Section 111 for charging the acceptor for honour?	The bill must be presented, or if the address given by such acceptor on the bill is at a place other than where the bill is payable, forwarded for presentment, not later than the day next after the day of its maturity.
When must the bill be forwarded instead of presented under Section 111?	When the address given by the acceptor for honour on the bill is a place other than the place where the bill is made payable.
What is the subject matter of Section 112 of the Negotiable Instruments Act, 1881?	Section 112 deals with when an acceptor for honour may be charged.
When can an acceptor for honour be charged under Section 112?	He cannot be charged unless the bill has at its maturity been presented to the drawee for payment, and has been dishonoured by him, and noted or protested for such dishonour.
What are the conditions for charging an acceptor for honour under Section 112?	The bill must at maturity be presented to the drawee for payment, dishonoured by him, and noted or protested for such dishonour.
Is noting or protest necessary under Section 112?	Yes, the bill must be noted or protested for the dishonour.
What is the subject matter of Section 113 of the Negotiable Instruments Act, 1881?	Section 113 deals with payment for honour.
When does Section 113 apply?	Section 113 applies when a bill of exchange has been noted or protested for non-payment.
Which instrument is covered under Section 113?	A bill of exchange noted or protested for non-payment.
Who may pay for honour under Section 113?	Any person may pay the bill for the honour of any party liable to pay the same.
For whose honour may payment be made under Section 113?	It may be made for the honour of any party liable to pay the bill.
What is the proviso to Section 113?	The person so paying or his agent in that behalf must previously declare before a notary public the party for whose honour he pays, and such declaration must be recorded by the notary public.
Is prior declaration before a notary public necessary under Section 113?	Yes, the payer or his agent must previously declare before a notary public the party for whose honour he pays.
Can an agent make the declaration under Section 113?	Yes, the person paying or his agent in that behalf may make the declaration.
What must the notary public do under Section 113?	The notary public must record the declaration stating the party for whose honour payment is made.
What is the subject matter of Section 114 of the Negotiable Instruments Act, 1881?	Section 114 deals with the right of payer for honour.
What rights does the payer for honour get under Section 114?	He is entitled to all the rights in respect of the bill of the holder at the time of such payment.
Whose rights does the payer for honour acquire under Section 114?	He acquires all the rights of the holder at the time of payment.
Against whom may the payer for honour recover under Section 114?	He may recover from the party for whose honour he pays.
What may the payer for honour recover under Section 114?	He may recover all sums so paid, with interest thereon and with all expenses properly incurred in making such payment.
Does the payer for honour get interest under Section 114?	Yes, he may recover the sums paid with interest thereon.
Can the payer for honour recover expenses under Section 114?	Yes, he may recover all expenses properly incurred in making such payment.
What is the subject matter of Section 115 of the Negotiable Instruments Act, 1881?	Section 115 deals with drawee in case of need.
When is a bill not dishonoured under Section 115?	Where a drawee in case of need is named in a bill of exchange, or in any indorsement thereon, the bill is not dishonoured until it has been dishonoured by such drawee.
What is meant by the rule regarding drawee in case of need under Section 115?	A bill is not treated as dishonoured until the drawee in case of need has also dishonoured it.
Where may a drawee in case of need be named under Section 115?	He may be named in the bill of exchange or in any indorsement thereon.
What is the subject matter of Section 116 of the Negotiable Instruments Act, 1881?	Section 116 deals with acceptance and payment by a drawee in case of need without protest.
What may a drawee in case of need do under Section 116?	A drawee in case of need may accept and pay the bill of exchange without previous protest.
Is previous protest necessary for a drawee in case of need under Section 116?	No, a drawee in case of need may accept and pay without previous protest.
Which instrument is covered under Section 116?	A bill of exchange.

CHAPTER-XII
OF COMPENSATION
What is the subject matter of Section 117 of the Negotiable Instruments Act, 1881?	Section 117 deals with rules as to compensation payable in case of dishonour of a promissory note, bill of exchange or cheque.
In what cases does Section 117 apply?	Section 117 applies in case of dishonour of a promissory note, bill of exchange or cheque.
To whom is compensation payable under Section 117?	Compensation is payable by any party liable to the holder or any indorsee.
Against whom can compensation be claimed under Section 117?	Compensation can be claimed by the holder or any indorsee against any party liable.
How is compensation determined under Section 117?	Compensation is determined according to the rules laid down in clauses (a) to (e) of Section 117.
What does clause (a) of Section 117 provide?	The holder is entitled to the amount due upon the instrument together with the expenses properly incurred in presenting, noting and protesting it.
What is the basic compensation of the holder under Section 117(a)?	The holder is entitled to the amount due upon the instrument.
Can the holder recover expenses under Section 117(a)?	Yes, the holder can recover expenses properly incurred in presenting, noting and protesting the instrument.
What expenses are recoverable by the holder under Section 117(a)?	Expenses properly incurred in presenting, noting and protesting the instrument are recoverable.
What does clause (b) of Section 117 provide?	When the person charged resides at a place different from that at which the instrument was payable, the holder is entitled to receive such sum at the current rate of exchange between the two places.
When is the holder entitled to current rate of exchange under Section 117(b)?	When the person charged resides at a place different from that at which the instrument was payable.
Between which places is the rate of exchange calculated under Section 117(b)?	It is calculated between the place where the person charged resides and the place where the instrument was payable.
What does clause (c) of Section 117 provide?	An indorser who, being liable, has paid the amount due on the instrument is entitled to the amount so paid with interest at eighteen per centum per annum from the date of payment until tender or realization thereof, together with all expenses caused by the dishonour and payment.
Who is entitled under Section 117(c)?	An indorser who, being liable, has paid the amount due on the instrument is entitled under Section 117(c).
What amount can a paying indorser recover under Section 117(c)?	He can recover the amount so paid.
What is the rate of interest payable to the indorser under Section 117(c)?	Interest at eighteen per centum per annum is payable.
From when does interest run under Section 117(c)?	Interest runs from the date of payment until tender or realization thereof.
Can a paying indorser recover expenses under Section 117(c)?	Yes, he can recover all expenses caused by the dishonour and payment.
What expenses are recoverable by an indorser under Section 117(c)?	All expenses caused by the dishonour and payment are recoverable.
What does clause (d) of Section 117 provide?	When the person charged and such indorser reside at different places, the indorser is entitled to receive such sum at the current rate of exchange between the two places.
When is an indorser entitled to current rate of exchange under Section 117(d)?	When the person charged and the indorser reside at different places.
Between which places is the rate of exchange calculated under Section 117(d)?	It is calculated between the place where the person charged resides and the place where the indorser resides.
What does clause (e) of Section 117 provide?	The party entitled to compensation may draw a bill upon the party liable to compensate him, payable at sight or on demand, for the amount due to him together with all expenses properly incurred by him.
Who may draw a compensatory bill under Section 117(e)?	The party entitled to compensation may draw such a bill.
Upon whom may a compensatory bill be drawn under Section 117(e)?	It may be drawn upon the party liable to compensate the party entitled.
How must the compensatory bill be payable under Section 117(e)?	It must be payable at sight or on demand.
What amount may be included in the compensatory bill under Section 117(e)?	It may include the amount due together with all expenses properly incurred by the party entitled to compensation.
What must accompany the compensatory bill under Section 117(e)?	The bill must be accompanied by the instrument dishonoured and the protest thereof, if any.
Is protest always necessary to accompany the compensatory bill under Section 117(e)?	No, the protest accompanies the bill only if there is any protest.
What happens if the compensatory bill is dishonoured under Section 117(e)?	The party dishonouring the same is liable to make compensation thereof in the same manner as in the case of the original bill.
How is compensation for dishonour of the compensatory bill determined under Section 117(e)?	It is determined in the same manner as in the case of the original bill.
Which instruments are covered under Section 117?	Section 117 covers a promissory note, bill of exchange and cheque.
Does Section 117 apply only to the holder?	No, Section 117 also applies to any indorsee.
Can both principal amount and incidental expenses be recovered under Section 117?	Yes, the principal amount due and the specified incidental expenses can be recovered according to the clauses of Section 117.

CHAPTER-XIII
SPECIAL RULES OF EVIDENCE
What is the subject matter of Section 118 of the Negotiable Instruments Act, 1881?	Section 118 deals with presumptions as to negotiable instruments.
Are the presumptions under Section 118 rebuttable?	Yes, the presumptions under Section 118 operate until the contrary is proved.
What is the opening rule under Section 118?	Until the contrary is proved, the presumptions specified in clauses (a) to (g) shall be made.
What does clause (a) of Section 118 provide?	It raises a presumption of consideration.
What is the presumption of consideration under Section 118(a)?	Every negotiable instrument is presumed to have been made or drawn for consideration.
What is presumed regarding acceptance, indorsement, negotiation or transfer under Section 118(a)?	Every negotiable instrument, when accepted, indorsed, negotiated or transferred, is presumed to have been accepted, indorsed, negotiated or transferred for consideration.
Does Section 118(a) presume consideration for the making or drawing of the instrument?	Yes, every negotiable instrument is presumed to have been made or drawn for consideration.
Does Section 118(a) also presume consideration for subsequent dealings with the instrument?	Yes, acceptance, indorsement, negotiation and transfer are also presumed to be for consideration.
What does clause (b) of Section 118 provide?	It raises a presumption as to date.
What is the presumption as to date under Section 118(b)?	Every negotiable instrument bearing a date is presumed to have been made or drawn on such date.
If a negotiable instrument bears a date, what is presumed under Section 118(b)?	It is presumed to have been made or drawn on the date it bears.
What does clause (c) of Section 118 provide?	It raises a presumption as to time of acceptance.
What is the presumption as to time of acceptance under Section 118(c)?	Every accepted bill of exchange is presumed to have been accepted within a reasonable time after its date and before its maturity.
Which instrument is covered by Section 118(c)?	An accepted bill of exchange.
When is an accepted bill of exchange presumed to have been accepted under Section 118(c)?	It is presumed to have been accepted within a reasonable time after its date and before its maturity.
What does clause (d) of Section 118 provide?	It raises a presumption as to time of transfer.
What is the presumption as to time of transfer under Section 118(d)?	Every transfer of a negotiable instrument is presumed to have been made before its maturity.
When is transfer of a negotiable instrument presumed to have been made under Section 118(d)?	It is presumed to have been made before the maturity of the instrument.
What does clause (e) of Section 118 provide?	It raises a presumption as to order of indorsements.
What is the presumption as to order of indorsements under Section 118(e)?	The indorsements appearing upon a negotiable instrument are presumed to have been made in the order in which they appear thereon.
How is the order of indorsements determined under Section 118(e)?	The indorsements are presumed to have been made in the same order in which they appear on the instrument.
What does clause (f) of Section 118 provide?	It raises a presumption as to stamp.
What is the presumption as to stamp under Section 118(f)?	A lost promissory note, bill of exchange or cheque is presumed to have been duly stamped.
Which instruments are covered by the presumption as to stamp under Section 118(f)?	A lost promissory note, a lost bill of exchange and a lost cheque.
What does clause (g) of Section 118 provide?	It raises a presumption that the holder is a holder in due course.
What is the presumption under Section 118(g)?	The holder of a negotiable instrument is presumed to be a holder in due course.
Is every holder presumed to be a holder in due course under Section 118(g)?	Yes, until the contrary is proved, the holder is presumed to be a holder in due course.
What is the proviso to Section 118(g)?	Where the instrument has been obtained from its lawful owner or lawful custodian by means of an offence or fraud, or from the maker or acceptor by means of an offence or fraud, or for unlawful consideration, the burden of proving that the holder is a holder in due course lies upon him.
When does the burden shift to the holder under the proviso to Section 118(g)?	When the instrument has been obtained by offence, fraud or unlawful consideration in the situations mentioned in the proviso.
From whom may the instrument be obtained by offence or fraud under the proviso to Section 118(g)?	It may be obtained from its lawful owner, from a person in lawful custody thereof, or from the maker or acceptor.
What happens if the instrument is obtained for unlawful consideration under Section 118(g) proviso?	The burden of proving that the holder is a holder in due course lies upon the holder.
What is the subject matter of Section 119 of the Negotiable Instruments Act, 1881?	Section 119 deals with presumption on proof of protest.
When does Section 119 apply?	Section 119 applies in a suit upon an instrument which has been dishonoured.
What must be proved under Section 119 to raise the presumption?	The protest of the dishonoured instrument must be proved.
What does the Court presume under Section 119?	The Court shall presume the fact of dishonour.
Is the presumption under Section 119 mandatory?	Yes, the Court shall presume the fact of dishonour on proof of the protest.
Can the presumption under Section 119 be rebutted?	Yes, the Court shall presume dishonour unless and until such fact is disproved.
What is the subject matter of Section 120 of the Negotiable Instruments Act, 1881?	Section 120 deals with estoppel against denying original validity of instrument.
Who are estopped under Section 120?	The maker of a promissory note, the drawer of a bill of exchange or cheque, and the acceptor of a bill of exchange for the honour of the drawer are estopped.
In whose suit does Section 120 operate?	It operates in a suit thereon by a holder in due course.
What are the maker, drawer or acceptor for honour prohibited from denying under Section 120?	They are not permitted to deny the validity of the instrument as originally made or drawn.
Can the maker of a promissory note deny original validity in a suit by a holder in due course under Section 120?	No, the maker cannot deny the validity of the instrument as originally made.
Can the drawer of a bill of exchange or cheque deny original validity in a suit by a holder in due course under Section 120?	No, the drawer cannot deny the validity of the instrument as originally drawn.
Can the acceptor for honour of the drawer deny original validity under Section 120?	No, the acceptor of a bill of exchange for the honour of the drawer cannot deny the validity of the instrument as originally made or drawn.
What is the subject matter of Section 121 of the Negotiable Instruments Act, 1881?	Section 121 deals with estoppel against denying capacity of payee to indorse.
Who are estopped under Section 121?	The maker of a promissory note and the acceptor of a bill of exchange payable to order are estopped.
In whose suit does Section 121 operate?	It operates in a suit thereon by a holder in due course.
What are the maker and acceptor prohibited from denying under Section 121?	They are not permitted to deny the payee's capacity, at the date of the note or bill, to indorse the same.
Can the maker of a promissory note deny the payee’s capacity to indorse under Section 121?	No, in a suit by a holder in due course, the maker cannot deny the payee’s capacity at the date of the note to indorse it.
Can the acceptor of a bill of exchange payable to order deny the payee’s capacity to indorse under Section 121?	No, in a suit by a holder in due course, the acceptor cannot deny the payee’s capacity at the date of the bill to indorse it.
What is the subject matter of Section 122 of the Negotiable Instruments Act, 1881?	Section 122 deals with estoppel against denying signature or capacity of prior party.
Who is estopped under Section 122?	An indorser of a negotiable instrument is estopped.
In whose suit does Section 122 operate?	It operates in a suit thereon by a subsequent holder.
What is an indorser prohibited from denying under Section 122?	He is not permitted to deny the signature or capacity to contract of any prior party to the instrument.
Can an indorser deny the signature of a prior party in a suit by a subsequent holder under Section 122?	No, an indorser cannot deny the signature of any prior party.
Can an indorser deny the contractual capacity of a prior party in a suit by a subsequent holder under Section 122?	No, an indorser cannot deny the capacity to contract of any prior party.
Which sections of the Negotiable Instruments Act, 1881 deal with presumptions and estoppels relating to negotiable instruments?	Sections 118 to 122 deal with presumptions as to negotiable instruments, presumption on proof of protest, and estoppels against denying validity, payee’s capacity, and prior party’s signature or capacity.

CHAPTER-XIV
OF CROSSED CHEQUES
What is the subject matter of Section 123 of the Negotiable Instruments Act, 1881?	Section 123 deals with cheque crossed generally.
When is a cheque deemed to be crossed generally under Section 123?	A cheque is deemed to be crossed generally when it bears across its face the words “and company” or any abbreviation thereof between two parallel transverse lines, or two parallel transverse lines simply, either with or without the words “not negotiable”.
What is the first mode of general crossing under Section 123?	The cheque bears across its face the words “and company” or any abbreviation thereof between two parallel transverse lines.
What is the second mode of general crossing under Section 123?	The cheque bears across its face two parallel transverse lines simply.
Is “not negotiable” necessary for general crossing under Section 123?	No, a cheque may be crossed generally either with or without the words “not negotiable”.
Do two parallel transverse lines alone amount to general crossing under Section 123?	Yes, two parallel transverse lines simply across the face of the cheque amount to general crossing.
What is the effect of the addition mentioned in Section 123?	Such addition is deemed to be a crossing and the cheque is deemed to be crossed generally.
What is the subject matter of Section 124 of the Negotiable Instruments Act, 1881?	Section 124 deals with cheque crossed specially.
When is a cheque deemed to be crossed specially under Section 124?	A cheque is deemed to be crossed specially when it bears across its face the addition of the name of a banker, either with or without the words “not negotiable”.
Is the name of a banker sufficient for special crossing under Section 124?	Yes, the addition of the name of a banker across the face of the cheque is sufficient.
Is “not negotiable” necessary for special crossing under Section 124?	No, a cheque may be crossed specially either with or without the words “not negotiable”.
To whom is a cheque deemed to be crossed under Section 124?	It is deemed to be crossed to the banker whose name is added.
What is the effect of the addition mentioned in Section 124?	Such addition is deemed to be a crossing and the cheque is deemed to be crossed specially and to be crossed to that banker.
What is the subject matter of Section 125 of the Negotiable Instruments Act, 1881?	Section 125 deals with crossing after issue.
Can the holder cross an uncrossed cheque under Section 125?	Yes, where a cheque is uncrossed, the holder may cross it generally or specially.
What options does the holder have where a cheque is uncrossed under Section 125?	The holder may cross it generally or specially.
Can a cheque already crossed generally be crossed specially under Section 125?	Yes, where a cheque is crossed generally, the holder may cross it specially.
Can the holder add “not negotiable” to a crossed cheque under Section 125?	Yes, where a cheque is crossed generally or specially, the holder may add the words “not negotiable”.
To which kinds of crossed cheques can “not negotiable” be added under Section 125?	The words “not negotiable” may be added to a cheque crossed generally or specially.
Can a specially crossed cheque be crossed again under Section 125?	Yes, the banker to whom it is crossed may again cross it specially to another banker, his agent, for collection.
Who may re-cross a specially crossed cheque under Section 125?	The banker to whom it is crossed may re-cross it specially.
For what purpose may a specially crossed cheque be re-crossed under Section 125?	It may be crossed specially to another banker, his agent, for collection.
To whom may a specially crossed cheque be re-crossed under Section 125?	It may be re-crossed specially to another banker who is the agent of the banker first crossed to, for collection.
What is the subject matter of Section 126 of the Negotiable Instruments Act, 1881?	Section 126 deals with payment of cheque crossed generally and payment of cheque crossed specially.
How must a cheque crossed generally be paid under Section 126?	Where a cheque is crossed generally, the banker on whom it is drawn shall not pay it otherwise than to a banker.
Can the drawee banker pay a generally crossed cheque to a non-banker under Section 126?	No, a generally crossed cheque can be paid only to a banker.
How must a cheque crossed specially be paid under Section 126?	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.
Can the drawee banker pay a specially crossed cheque to any banker under Section 126?	No, it can be paid only to the banker to whom it is crossed or his agent for collection.
Who may receive payment of a specially crossed cheque under Section 126?	Only the banker to whom it is crossed or his agent for collection may receive payment.
What is the subject matter of Section 127 of the Negotiable Instruments Act, 1881?	Section 127 deals with payment of cheque crossed specially more than once.
What is the rule under Section 127?	Where a cheque is crossed specially to more than one banker, the banker on whom it is drawn shall refuse payment thereof.
What is the exception under Section 127?	The banker need not refuse payment when the second special crossing is to an agent for the purpose of collection.
When must the drawee banker refuse payment under Section 127?	He must refuse payment where the cheque is crossed specially to more than one banker, except when crossed to an agent for collection.
Can a cheque be specially crossed to more than one banker under Section 127?	No, if it is specially crossed to more than one banker, payment must be refused except where the second crossing is to an agent for collection.
What is the subject matter of Section 128 of the Negotiable Instruments Act, 1881?	Section 128 deals with payment in due course of crossed cheque.
What protection does Section 128 give to the paying banker?	Where the banker on whom a crossed cheque is drawn has paid it in due course, the banker paying the cheque is entitled to the same rights and is placed in the same position as if the amount had been paid to and received by the true owner.
What protection does Section 128 give to the drawer?	In case the crossed cheque has come to the hands of the payee, the drawer is entitled to the same rights and is placed in the same position as if the amount had been paid to and received by the true owner.
When does Section 128 apply?	It applies where the banker on whom a crossed cheque is drawn has paid the cheque in due course.
What is the legal fiction under Section 128?	The paying banker and, where the cheque has come to the hands of the payee, the drawer are treated as if the amount had been paid to and received by the true owner.
Is the drawer always protected under Section 128?	No, the drawer is protected only where the crossed cheque has come to the hands of the payee.
What is the subject matter of Section 129 of the Negotiable Instruments Act, 1881?	Section 129 deals with payment of crossed cheque out of due course.
When is a banker liable under Section 129 in case of general crossing?	A banker is liable if he pays a cheque crossed generally otherwise than to a banker.
When is a banker liable under Section 129 in case of special crossing?	A banker is liable if he pays a cheque crossed specially otherwise than to the banker to whom it is crossed, or his agent for collection, being a banker.
To whom is the banker liable under Section 129?	The banker is liable to the true owner of the cheque.
For what is the banker liable under Section 129?	He is liable for any loss sustained by the true owner owing to the cheque having been so paid.
What is the consequence of payment out of due course under Section 129?	The banker paying contrary to the rules of crossing is liable to the true owner for the loss caused.
Can payment of a generally crossed cheque to a non-banker attract liability under Section 129?	Yes, the banker is liable to the true owner for any loss caused.
Can payment of a specially crossed cheque to the wrong person attract liability under Section 129?	Yes, payment otherwise than to the banker crossed to or his banker-agent for collection makes the banker liable to the true owner.
What is the subject matter of Section 130 of the Negotiable Instruments Act, 1881?	Section 130 deals with cheque bearing “not negotiable”.
What is the effect of the words “not negotiable” on a crossed cheque under Section 130?	A person taking a cheque crossed generally or specially bearing the words “not negotiable” shall not have, and shall not be capable of giving, a better title than that which the person from whom he took it had.
Does a “not negotiable” crossing destroy transferability under Section 130?	No, it does not destroy transferability, but it prevents the transferee from acquiring or giving a better title than the transferor had.
To which cheques does Section 130 apply?	It applies to a cheque crossed generally or specially bearing the words “not negotiable”.
Can a transferee of a “not negotiable” crossed cheque become holder with better title under Section 130?	No, he cannot acquire a better title than his transferor had.
Can a transferee of a “not negotiable” crossed cheque pass better title to another under Section 130?	No, he is not capable of giving a better title than that which the person from whom he took it had.
Which sections of the Negotiable Instruments Act, 1881 deal with crossing of cheques and its consequences?	Sections 123 to 130 deal with general crossing, special crossing, crossing after issue, payment rules, consequences of multiple special crossing, protection for payment in due course, liability for payment out of due course, and effect of “not negotiable” crossing.
What is the subject matter of Section 131 of the Negotiable Instruments Act, 1881?	Section 131 deals with non-liability of banker receiving payment of cheque.
Who is protected under Section 131?	A banker who has received payment for a customer of a cheque crossed generally or specially to himself is protected.
What are the essential conditions for protection under Section 131?	The banker must have received payment for a customer, of a cheque crossed generally or specially to himself, in good faith and without negligence.
What kind of cheque is covered under Section 131?	A cheque crossed generally or specially to the banker himself.
Must the cheque be crossed to the collecting banker under Section 131?	Yes, the cheque must be crossed generally or specially to the banker receiving payment.
For whom must the banker receive payment under Section 131?	The banker must receive payment for a customer.
Is good faith required for protection under Section 131?	Yes, the banker must have received payment in good faith.
Is absence of negligence required for protection under Section 131?	Yes, the banker must have received payment without negligence.
What is the effect of Section 131 when the title to the cheque proves defective?	The banker does not incur liability to the true owner of the cheque by reason only of having received such payment.
To whom is the collecting banker protected from liability under Section 131?	He is protected from liability to the true owner of the cheque.
What kind of defect is contemplated under Section 131?	The section applies where the title to the cheque proves defective.
Does Section 131 give absolute immunity to the banker?	No, protection is available only if the banker acted in good faith and without negligence.
Can a negligent collecting banker claim protection under Section 131?	No, a banker who acts negligently cannot claim protection under Section 131.
Can a banker acting without good faith claim protection under Section 131?	No, absence of good faith defeats the protection under Section 131.
What is the precise statutory protection under Section 131?	The banker shall not incur any liability to the true owner of the cheque by reason only of having received such payment.
What does Explanation I to Section 131 provide?	A banker receives payment of a crossed cheque for a customer within the meaning of Section 131 notwithstanding that he credits his customer’s account with the amount of the cheque before receiving payment thereof.
Does prior credit to the customer’s account destroy protection under Section 131?	No, even if the banker credits the customer’s account before actual receipt of payment, he is still deemed to receive payment for a customer within Section 131.
When is a banker deemed to receive payment for a customer under Explanation I to Section 131?	He is deemed to receive payment for a customer even if he credits the customer’s account before receiving payment of the crossed cheque.
What is the effect of Explanation I to Section 131?	Advance credit to the customer’s account does not by itself take the case outside Section 131.
What does Explanation II to Section 131 provide?	It imposes a duty on the banker who receives payment based on an electronic image of a truncated cheque to verify the prima facie genuineness of the cheque and any apparent fraud, forgery or tampering that can be verified with due diligence and ordinary care.
To whom does Explanation II to Section 131 apply?	It applies to the banker who receives payment based on an electronic image of a truncated cheque held with him.
What is a banker’s duty under Explanation II to Section 131?	The banker must verify the prima facie genuineness of the cheque to be truncated.
What else must the banker verify under Explanation II to Section 131?	He must verify any fraud, forgery or tampering apparent on the face of the instrument that can be verified with due diligence and ordinary care.
What standard of care is prescribed under Explanation II to Section 131?	Due diligence and ordinary care.
Does Explanation II to Section 131 relate to truncated cheques?	Yes, it specifically relates to payment based on an electronic image of a truncated cheque.
Is apparent fraud relevant under Explanation II to Section 131?	Yes, the banker must verify any fraud apparent on the face of the instrument that can be detected with due diligence and ordinary care.
Is apparent forgery relevant under Explanation II to Section 131?	Yes, the banker must verify any forgery apparent on the face of the instrument that can be detected with due diligence and ordinary care.
Is apparent tampering relevant under Explanation II to Section 131?	Yes, the banker must verify any tampering apparent on the face of the instrument that can be detected with due diligence and ordinary care.
What is the subject matter of Section 131A of the Negotiable Instruments Act, 1881?	Section 131A deals with application of the Chapter to drafts.
What does Section 131A provide?	The provisions of the Chapter apply to any draft, as defined in Section 85A, as if the draft were a cheque.
To what instrument does Section 131A extend the Chapter?	It extends the Chapter to any draft as defined in Section 85A.
How are drafts treated under Section 131A?	Drafts are treated as if they were cheques for the purposes of the Chapter.
Which definition is relevant for Section 131A?	The definition of draft in Section 85A is relevant.
Does Section 131A create a legal fiction?	Yes, it deems a draft to be a cheque for the purposes of applying the provisions of the Chapter.
What is the practical effect of Section 131A?	The rules relating to crossed cheques and collecting banker protection in the Chapter apply equally to drafts as defined in Section 85A.
Which sections of the Negotiable Instruments Act, 1881 conclude the Chapter on crossed cheques and banker protection?	Sections 131 and 131A conclude the Chapter by providing protection to collecting bankers and extending the Chapter to drafts.

CHAPTER-XV
OF BILLS IN SETS
What is the subject matter of Section 132 of the Negotiable Instruments Act, 1881?	Section 132 deals with set of bills.
Can a bill of exchange be drawn in parts under Section 132?	Yes, a bill of exchange may be drawn in parts.
How must the parts of a bill be drawn under Section 132?	Each part must be numbered and contain a provision that it shall continue payable only so long as the others remain unpaid.
Is numbering of each part necessary under Section 132?	Yes, each part of the bill must be numbered.
What condition must each part contain under Section 132?	Each part must contain a provision that it shall continue payable only so long as the other parts remain unpaid.
What is meant by a set under Section 132?	All the parts of a bill of exchange drawn in parts together make a set.
Do all parts together make separate bills under Section 132?	No, all the parts together make a set, but the whole set constitutes only one bill.
How many bills does a set of bills constitute under Section 132?	The whole set constitutes only one bill.
What is the legal nature of a set of bills under Section 132?	Though drawn in several parts, the whole set is treated as only one bill.
When is the whole set extinguished under Section 132?	The whole set is extinguished when one of the parts, if a separate bill, would be extinguished.
What is the rule of extinguishment under Section 132?	Extinguishment of one part in the manner in which a separate bill would be extinguished extinguishes the whole set.
What is the exception to Section 132?	When a person accepts or indorses different parts of the bill in favour of different persons, he and the subsequent indorsers of each part are liable on such part as if it were a separate bill.
When does the exception to Section 132 apply?	It applies when a person accepts or indorses different parts of the same bill in favour of different persons.
What is the effect of accepting different parts in favour of different persons under the exception to Section 132?	The acceptor and the subsequent indorsers of each part are liable on that part as if it were a separate bill.
What is the effect of indorsing different parts in favour of different persons under the exception to Section 132?	The indorser and the subsequent indorsers of each part are liable on that part as if it were a separate bill.
Who are liable under the exception to Section 132?	The person accepting or indorsing different parts in favour of different persons and the subsequent indorsers of each part are liable on such part as if it were a separate bill.
Are different parts treated as separate bills under the main rule of Section 132?	No, under the main rule the whole set constitutes only one bill.
Are different parts treated as separate bills under the exception to Section 132?	Yes, in the exceptional case they are treated as separate bills for liability purposes.
What is the subject matter of Section 133 of the Negotiable Instruments Act, 1881?	Section 133 deals with the rights of the holder of the first acquired part of a set of bills.
Between whom does Section 133 operate?	It operates as between holders in due course of different parts of the same set.
Who is entitled under Section 133?	The holder in due course who first acquired title to his part is entitled.
What is the rule under Section 133?	As between holders in due course of different parts of the same set, the one who first acquired title to his part is entitled to the other parts and the money represented by the bill.
How is priority determined under Section 133?	Priority is determined by who first acquired title to his part.
Who gets the money represented by the bill under Section 133?	The holder in due course who first acquired title to his part gets the money represented by the bill.
Can multiple holders in due course of different parts claim equally under Section 133?	No, priority is given to the holder in due course who first acquired title to his part.
To what is the prior holder in due course entitled under Section 133?	He is entitled to the other parts and the money represented by the bill.
Which sections of the Negotiable Instruments Act, 1881 deal with bills drawn in sets?	Sections 132 and 133 deal with set of bills and the rights of the holder of the first acquired part.

CHAPTER-XVI
OF INTERNATIONAL LAW
What is the subject matter of Section 134 of the Negotiable Instruments Act, 1881?	Section 134 deals with the law governing liability of the maker, acceptor or indorser of a foreign instrument.
To which instruments does Section 134 apply?	Section 134 applies to a foreign promissory note, bill of exchange or cheque.
What is the opening rule under Section 134?	In the absence of a contract to the contrary, liability is governed by the law specified in Section 134.
Can the parties contract out of the rule in Section 134?	Yes, Section 134 applies in the absence of a contract to the contrary.
By which law is the liability of the maker or drawer of a foreign instrument governed under Section 134?	The liability of the maker or drawer is regulated in all essential matters by the law of the place where he made the instrument.
What does the expression “in all essential matters” under Section 134 relate to?	It relates to the liability of the maker or drawer of a foreign promissory note, bill of exchange or cheque.
Which place is relevant for determining the liability of the maker or drawer under Section 134?	The place where the maker or drawer made the instrument.
By which law is the liability of the acceptor under Section 134 governed?	The liability of the acceptor is regulated by the law of the place where the instrument is made payable.
By which law is the liability of the indorser under Section 134 governed?	The liability of the indorser is regulated by the law of the place where the instrument is made payable.
Which place is relevant for determining the liabilities of the acceptor and indorser under Section 134?	The place where the instrument is made payable.
What does the illustration to Section 134 show?	It shows that the acceptor’s liability is governed by the law of the place of payment, while the drawer’s liability is governed by the law of the place where the instrument was made.
What was the rate of interest in California in the illustration to Section 134?	The rate of interest in California in the illustration is 25 per cent.
What was the rate of interest in Washington in the illustration to Section 134?	The rate of interest in Washington in the illustration is 6 per cent.
At what rate was the acceptor B held liable in the illustration to Section 134?	B, the acceptor, was liable to pay interest at the rate of 6 per cent only.
At what rate was the drawer A held liable in the illustration to Section 134?	A, the drawer, was liable to pay interest at the rate of 25 per cent.
What is the subject matter of Section 135 of the Negotiable Instruments Act, 1881?	Section 135 deals with the law of the place of payment governing dishonour.
When does Section 135 apply?	Section 135 applies where a promissory note, bill of exchange or cheque is made payable in a different place from that in which it is made or indorsed.
What determines what constitutes dishonour under Section 135?	The law of the place where the instrument is made payable determines what constitutes dishonour.
What determines what notice of dishonour is sufficient under Section 135?	The law of the place where the instrument is made payable determines what notice of dishonour is sufficient.
Which place governs dishonour under Section 135?	The place where the instrument is made payable governs dishonour.
Which place governs sufficiency of notice of dishonour under Section 135?	The place where the instrument is made payable governs sufficiency of notice of dishonour.
Does Section 135 apply when the place of payment is the same as the place of making or indorsement?	No, Section 135 applies when the instrument is made payable in a different place from that in which it is made or indorsed.
What does the illustration to Section 135 show?	It shows that notice of dishonour given in accordance with the law of the place of payment is sufficient even if it is not in accordance with the rules applicable to inland bills.
In the illustration to Section 135, where was the bill drawn and indorsed?	In the illustration, the bill was drawn and indorsed in India.
In the illustration to Section 135, where was the bill accepted payable?	In the illustration, the bill was accepted payable in France.
Was the notice in the illustration to Section 135 sufficient though not in accordance with Indian rules for non-foreign bills?	Yes, the notice was sufficient because it was given in accordance with the law of France, the place of payment.
What is the subject matter of Section 136 of the Negotiable Instruments Act, 1881?	Section 136 deals with an instrument made, drawn, accepted or indorsed outside India but in accordance with the law of India.
When does Section 136 apply?	Section 136 applies when a negotiable instrument is made, drawn, accepted or indorsed outside India, but in accordance with the law of India.
What is the rule under Section 136?	If a negotiable instrument is made, drawn, accepted or indorsed outside India in accordance with the law of India, the fact that the agreement evidenced by it is invalid according to the law of the country where it was entered into does not invalidate any subsequent acceptance or indorsement made thereon within India.
Does invalidity of the underlying agreement under foreign law affect subsequent acceptance or indorsement in India under Section 136?	No, such invalidity does not invalidate any subsequent acceptance or indorsement made within India if the instrument was made in accordance with the law of India.
Which subsequent acts are protected under Section 136?	Subsequent acceptance or indorsement made on the instrument within India is protected.
What is the territorial requirement for the protected subsequent act under Section 136?	The subsequent acceptance or indorsement must be made within India.
What is the legal significance of compliance with Indian law under Section 136?	If the instrument is made, drawn, accepted or indorsed outside India in accordance with the law of India, later acceptance or indorsement within India remains valid despite invalidity of the original agreement under foreign law.
What is the subject matter of Section 137 of the Negotiable Instruments Act, 1881?	Section 137 deals with presumption as to foreign law.
What is presumed under Section 137?	The law of any foreign country regarding promissory notes, bills of exchange and cheques is presumed to be the same as that of India.
Is the presumption under Section 137 rebuttable?	Yes, the foreign law is presumed to be the same as that of India unless and until the contrary is proved.
To which subjects does the presumption under Section 137 relate?	It relates to the law of any foreign country regarding promissory notes, bills of exchange and cheques.
What is the default rule regarding foreign law under Section 137?	In the absence of proof to the contrary, foreign law relating to promissory notes, bills of exchange and cheques is presumed to be the same as Indian law.
Which sections of the Negotiable Instruments Act, 1881 deal with conflict of laws and foreign instruments?	Sections 134 to 137 deal with the law governing liability on foreign instruments, the law of place of payment governing dishonour, instruments made outside India in accordance with Indian law, and presumption as to foreign law.

CHAPTER-XVII
OF PENALTIES IN CASE OF DISHONOUR OF CERTAIN CHEQUES FOR INSUFFICIENCY OF FUNDS IN THE ACCOUNTS
What is the subject matter of Section 138 of the Negotiable Instruments Act, 1881?	Section 138 deals with dishonour of cheque for insufficiency of funds or where it exceeds the arranged amount in the account.
When does Section 138 create an offence?	Section 138 creates an offence when a cheque drawn by a person on an account maintained by him with a banker is returned unpaid for insufficiency of funds or because it exceeds the amount arranged with the bank.
What kind of cheque is covered under Section 138?	Section 138 covers a cheque drawn by a person on an account maintained by him with a banker.
For whose benefit must the cheque be drawn under Section 138?	The cheque must be drawn for payment of any amount of money to another person.
From where must the payment under the cheque be intended to be made under Section 138?	The payment must be intended to be made out of the account maintained by the drawer with the banker.
For what purpose must the cheque be issued to attract Section 138?	The cheque must be issued for discharge, in whole or in part, of any debt or other liability.
Can Section 138 apply where the cheque is issued for part discharge of liability?	Yes, Section 138 applies even when the cheque is issued for discharge in part of a debt or other liability.
What is the first ground of dishonour under Section 138?	The first ground is that the amount of money standing to the credit of the account is insufficient to honour the cheque.
What is the second ground of dishonour under Section 138?	The second ground is that the cheque amount exceeds the amount arranged to be paid from that account by an agreement made with the bank.
Is the drawer deemed to have committed an offence on fulfilment of Section 138 conditions?	Yes, the drawer is deemed to have committed an offence when the cheque is returned unpaid for the reasons stated and the statutory conditions are fulfilled.
Does Section 138 operate without prejudice to other provisions of the Act?	Yes, Section 138 applies without prejudice to any other provision of the Negotiable Instruments Act, 1881.
What is the maximum term of imprisonment under Section 138?	The maximum punishment under Section 138 is imprisonment for a term which may extend to two years.
What is the maximum fine under Section 138?	The fine under Section 138 may extend to twice the amount of the cheque.
Can both imprisonment and fine be imposed under Section 138?	Yes, the offender may be punished with imprisonment, or with fine, or with both under Section 138.
What is the first proviso-condition under Section 138?	The cheque must be presented to the bank within six months from the date on which it is drawn or within its period of validity, whichever is earlier.
Within what time must the cheque be presented under Section 138 proviso (a)?	The cheque must be presented within six months from the date of drawal or within its period of validity, whichever is earlier.
If the validity period of the cheque is shorter than six months, which period applies under Section 138?	The cheque must be presented within the period of its validity, since the earlier period applies.
Who may issue the statutory notice under Section 138 proviso (b)?	The payee or the holder in due course of the cheque may issue the statutory notice under Section 138.
What must the payee or holder in due course do under Section 138 proviso (b)?	He must make a demand for payment of the cheque amount by giving a notice in writing to the drawer.
What is the nature of notice required under Section 138 proviso (b)?	The notice must be a written notice demanding payment of the cheque amount.
Within what time must notice be issued under Section 138 proviso (b)?	Notice must be issued within thirty days of receipt of information from the bank regarding return of the cheque as unpaid.
From which date is the 30-day period under Section 138 proviso (b) computed?	The 30-day period is computed from the date the payee or holder in due course receives information from the bank regarding dishonour.
To whom must the notice under Section 138 proviso (b) be given?	The notice must be given to the drawer of the cheque.
What is the third proviso-condition under Section 138?	The drawer must fail to make payment of the cheque amount to the payee or holder in due course within fifteen days of receipt of the notice.
Within what time can the drawer avoid liability after receiving notice under Section 138 proviso (c)?	The drawer can avoid liability by making payment within fifteen days of receipt of the statutory notice.
To whom must payment be made within fifteen days under Section 138 proviso (c)?	Payment must be made to the payee or, as the case may be, to the holder in due course of the cheque.
When is the offence under Section 138 completed?	The offence under Section 138 is completed when the drawer fails to pay the cheque amount within fifteen days of receipt of the statutory notice after valid dishonour and notice.
What does the Explanation to Section 138 define?	The Explanation to Section 138 defines the expression “debt or other liability”.
What is meant by “debt or other liability” under Section 138?	“Debt or other liability” means a legally enforceable debt or other liability.
Can Section 138 apply to a cheque issued for a time-barred or legally unenforceable debt?	No, Section 138 applies only when the cheque is issued for a legally enforceable debt or other liability.
Is a legally enforceable liability essential for Section 138?	Yes, existence of a legally enforceable debt or other liability is essential under Section 138.
Does mere dishonour of cheque automatically attract Section 138?	No, Section 138 applies only when the cheque is for a legally enforceable debt or liability and all statutory conditions in the proviso are fulfilled.
Can Section 138 apply if notice is not issued within thirty days?	No, Section 138 does not apply if the statutory notice is not issued within thirty days from receipt of information of dishonour.
Can Section 138 apply if the cheque is not presented within the prescribed time?	No, Section 138 does not apply unless the cheque is presented within six months from drawal or within its validity period, whichever is earlier.
Can Section 138 apply if the drawer pays within fifteen days of receiving notice?	No, if the drawer pays within fifteen days of receipt of notice, no offence under Section 138 is made out.
What is the subject matter of Section 139 of the Negotiable Instruments Act, 1881?	Section 139 deals with the presumption in favour of the holder of the cheque.
What is presumed under Section 139?	It shall be presumed, unless the contrary is proved, that the holder of the cheque received it for discharge, in whole or in part, of a debt or other liability.
Is the presumption under Section 139 mandatory or discretionary?	The presumption under Section 139 is mandatory, as the section uses the words “it shall be presumed”.
Is the presumption under Section 139 rebuttable?	Yes, the presumption under Section 139 is rebuttable because it operates unless the contrary is proved.
In whose favour does Section 139 raise the presumption?	Section 139 raises the presumption in favour of the holder of the cheque.
What is the nature of cheque referred to in Section 139?	It refers to a cheque of the nature referred to in Section 138.
What is presumed regarding the purpose of issuance of cheque under Section 139?	It is presumed that the cheque was received for discharge, in whole or in part, of a debt or other liability.
Does Section 139 presume existence of debt or liability?	Yes, Section 139 presumes that the cheque was received for discharge of a debt or other liability unless the contrary is proved.
Can the presumption under Section 139 be displaced by the accused?	Yes, the accused may rebut the presumption by proving the contrary.
Does Section 139 cover part discharge of liability also?	Yes, Section 139 applies where the cheque is received for discharge in whole or in part of any debt or other liability.
What is the subject matter of Section 140 of the Negotiable Instruments Act, 1881?	Section 140 deals with a defence which may not be allowed in a prosecution under Section 138.
What defence is barred under Section 140?	It is not a defence that the drawer had no reason to believe, when he issued the cheque, that it might be dishonoured on presentment for the reasons stated in Section 138.
In what proceedings does Section 140 apply?	Section 140 applies in any prosecution for an offence under Section 138.
Can the drawer plead lack of knowledge of possible dishonour as a defence under Section 140?	No, lack of reason to believe that the cheque may be dishonoured is not an allowable defence under Section 140.
At what point of time is the barred belief under Section 140 examined?	The barred plea relates to the drawer’s belief at the time when he issued the cheque.
What reasons for dishonour are referred to in Section 140?	The reasons are those stated in Section 138, namely insufficiency of funds or exceeding the amount arranged with the bank.
Does Section 140 exclude the defence of absence of mens rea based on expected honour of cheque?	Yes, Section 140 bars the defence that the drawer had no reason to believe the cheque would be dishonoured for the reasons mentioned in Section 138.
Which sections of the Negotiable Instruments Act, 1881 form the core statutory scheme for cheque dishonour offence, presumption, and barred defence?	Sections 138, 139 and 140 respectively deal with the offence of cheque dishonour, presumption in favour of holder, and the defence which may not be allowed.
What is the subject matter of Section 141 of the Negotiable Instruments Act, 1881?	Section 141 deals with offences by companies in relation to an offence under Section 138 of the Act.
When does Section 141 apply?	Section 141 applies when the person committing an offence under Section 138 is a company.
What is the basic rule under Section 141(1) when a company commits an offence under Section 138?	When a company commits an offence under Section 138, every person who at the time of commission of the offence was in charge of and responsible to the company for the conduct of its business, as well as the company, is deemed to be guilty.
Is the company itself liable under Section 141(1)?	Yes, the company itself is deemed to be guilty and liable to be proceeded against and punished accordingly under Section 141(1).
Who are vicariously liable under Section 141(1)?	Every person who, at the time the offence was committed, was in charge of and responsible to the company for the conduct of its business is vicariously liable under Section 141(1), along with the company.
At what point of time is responsibility determined under Section 141(1)?	Responsibility is determined at the time when the offence was committed.
What are the twin requirements for fastening liability under Section 141(1)?	The person must be in charge of the company and responsible to the company for the conduct of its business at the time the offence was committed.
Is mere designation as director sufficient to attract Section 141(1)?	No, mere designation is not sufficient; the person must be in charge of and responsible for the conduct of the business of the company at the relevant time.
Can a person avoid punishment under the first proviso to Section 141(1)?	Yes, a person can avoid punishment if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent its commission.
What is the first defence available under the first proviso to Section 141(1)?	The person may prove that the offence was committed without his knowledge.
What is the second defence available under the first proviso to Section 141(1)?	The person may prove that he had exercised all due diligence to prevent the commission of the offence.
On whom does the burden of proof lie under the first proviso to Section 141(1)?	The burden lies on the person sought to be made liable to prove lack of knowledge or due diligence.
What protection is granted by the second proviso to Section 141(1)?	A person nominated as a Director of a company by virtue of holding any office or employment in the Central Government, State Government, or a government-owned or government-controlled financial corporation is exempt from prosecution under this Chapter.
Is a nominee Director of the Government liable for prosecution under this Chapter by virtue of the second proviso to Section 141(1)?	No, such a nominee Director is not liable for prosecution under this Chapter.
Who is covered by the second proviso to Section 141(1)?	A person nominated as a Director by virtue of holding office or employment in the Central Government, State Government, or a financial corporation owned or controlled by either Government is covered.
What is the subject matter of Section 141(2) of the Negotiable Instruments Act, 1881?	Section 141(2) deals with liability of directors, managers, secretaries or other officers where the offence is committed with their consent, connivance or due to their neglect.
Does Section 141(2) operate notwithstanding sub-section (1)?	Yes, Section 141(2) expressly operates notwithstanding anything contained in sub-section (1).
Who may be made liable under Section 141(2)?	Any director, manager, secretary or other officer of the company may be made liable under Section 141(2).
What must be proved to attract liability under Section 141(2)?	It must be proved that the offence was committed with the consent or connivance of, or is attributable to neglect on the part of, the concerned director, manager, secretary or other officer.
What are the three alternative bases of liability under Section 141(2)?	The three alternative bases are consent, connivance, or neglect of the director, manager, secretary or other officer.
Can an officer be liable under Section 141(2) even if he is not shown to be in charge of the business under Section 141(1)?	Yes, if consent, connivance or neglect is proved, liability may arise under Section 141(2) notwithstanding sub-section (1).
What is meant by “consent” under Section 141(2)?	Consent means the offence was committed with the approval or assent of the concerned officer.
What is meant by “connivance” under Section 141(2)?	Connivance means the offence was committed with the knowing acquiescence or wilful turning of a blind eye by the concerned officer.
What is meant by “neglect” under Section 141(2)?	Neglect means the offence is attributable to failure of the concerned officer to exercise proper care or duty.
What is the effect of proof under Section 141(2)?	The concerned director, manager, secretary or other officer is deemed to be guilty of the offence and is liable to be proceeded against and punished accordingly.
What does the Explanation to Section 141 define?	The Explanation defines “company” and “director” for the purposes of Section 141.
How is “company” defined under Explanation (a) to Section 141?	“Company” means any body corporate and includes a firm or other association of individuals.
Does the expression “company” under Section 141 include a firm?	Yes, the expression “company” includes a firm.
Does the expression “company” under Section 141 include an association of individuals?	Yes, the expression “company” includes an association of individuals.
How is “director” defined in relation to a firm under Explanation (b) to Section 141?	In relation to a firm, “director” means a partner in the firm.
Who is treated as a “director” for a firm under Section 141?	A partner in the firm is treated as a “director” for the purposes of Section 141.
Can partners of a firm be prosecuted under Section 141?	Yes, since a firm is included within “company” and a partner is treated as a “director”, partners may be prosecuted subject to fulfilment of statutory conditions.
Which section creates vicarious criminal liability for company-related cheque dishonour offences?	Section 141 creates vicarious criminal liability for offences under Section 138 committed by a company.
What is the essential averment required to invoke Section 141(1)?	It must be averred that the accused was, at the time of commission of the offence, in charge of and responsible to the company for the conduct of its business.
Can liability under Section 141 be automatic for all officers of a company?	No, liability under Section 141 is not automatic and depends on satisfaction of the statutory conditions under sub-section (1) or sub-section (2).
What is the difference between liability under Section 141(1) and Section 141(2)?	Section 141(1) fastens liability on persons in charge of and responsible for the conduct of the company’s business, whereas Section 141(2) fastens liability on directors or officers whose consent, connivance or neglect led to the offence.
Can both the company and its responsible officers be prosecuted under Section 141?	Yes, the company as well as persons falling under Section 141(1) or Section 141(2) may be prosecuted.
Which sections of the Negotiable Instruments Act, 1881 together govern cheque dishonour by companies?	Sections 138 and 141 together govern the offence of cheque dishonour and vicarious liability where the drawer is a company.
What is the leading case on vicarious liability under Section 141 requiring specific averments in the complaint?	The leading case is S.M.S. Pharmaceuticals Ltd. v. Neeta Bhalla, (2005) 8 SCC 89.
What was held in S.M.S. Pharmaceuticals Ltd. v. Neeta Bhalla on pleadings under Section 141?	The Supreme Court held that it is necessary to specifically aver in the complaint that at the time the offence was committed the accused was in charge of and responsible for the conduct of the business of the company.
What is the leading case on when directors can be prosecuted under Section 141?	The leading case is National Small Industries Corporation Ltd. v. Harmeet Singh Paintal, (2010) 3 SCC 330.
What was held in National Small Industries Corporation Ltd. v. Harmeet Singh Paintal regarding directors’ liability under Section 141?	The Supreme Court held that vicarious liability under Section 141 must be pleaded and proved strictly, and mere holding of office as director is not enough unless statutory requirements are satisfied.
What is the leading case explaining that only persons responsible at the relevant time can be prosecuted under Section 141?	The leading case is K.K. Ahuja v. V.K. Vora, (2009) 10 SCC 48.
What was held in K.K. Ahuja v. V.K. Vora regarding Section 141?	The Supreme Court clarified that liability depends on the role of the person and whether he was in charge of and responsible for the conduct of the business at the relevant time.
What is the leading case on arraigning the company as an accused under Section 141?	The leading case is Aneeta Hada v. Godfather Travels & Tours (P) Ltd., (2012) 5 SCC 661.
What was held in Aneeta Hada v. Godfather Travels & Tours (P) Ltd. regarding prosecution under Section 141?	The Supreme Court held that for maintaining prosecution under Section 141, arraigning the company as an accused is imperative, except in legally recognized exceptional situations.
What is the leading case on signatory liability under Section 141?	The leading case is Gunmala Sales (P) Ltd. v. Anu Mehta, (2015) 1 SCC 103.
What was held in Gunmala Sales (P) Ltd. v. Anu Mehta regarding Section 141?	The Supreme Court held that while basic averments are necessary, in appropriate cases High Courts may quash proceedings where unimpeachable material clearly shows absence of liability.
What is the subject matter of Section 142 of the Negotiable Instruments Act, 1881?	Section 142 deals with cognizance of offences under Section 138 and the territorial jurisdiction for inquiry and trial of such offences.
What is the opening effect of Section 142(1)?	Section 142(1) begins with a non-obstante clause and operates notwithstanding anything contained in the Code of Criminal Procedure, 1973.
Against which offences does Section 142 apply?	Section 142 applies to offences punishable under Section 138 of the Negotiable Instruments Act, 1881.
What is the requirement under Section 142(1)(a) for taking cognizance?	No court shall take cognizance of an offence punishable under Section 138 except upon a complaint in writing made by the payee or, as the case may be, the holder in due course of the cheque.
Can a court take cognizance of a Section 138 offence on a police report under Section 142(1)(a)?	No, cognizance can be taken only upon a written complaint by the payee or holder in due course.
What is the nature of complaint required under Section 142(1)(a)?	The complaint must be in writing.
Who is competent to file a complaint under Section 142(1)(a)?	Only the payee or, as the case may be, the holder in due course of the cheque is competent to file the complaint.
Can a stranger to the cheque file a complaint under Section 142(1)(a)?	No, only the payee or holder in due course can file the complaint.
What is the limitation period under Section 142(1)(b)?	The complaint must be made within one month of the date on which the cause of action arises under clause (c) of the proviso to Section 138.
From which date does limitation begin under Section 142(1)(b)?	Limitation begins from the date on which the cause of action arises under clause (c) of the proviso to Section 138, i.e., after failure of the drawer to pay within fifteen days of receipt of notice.
What is meant by “cause of action” under Section 142(1)(b) in cheque dishonour cases?	Cause of action arises when the drawer fails to make payment within fifteen days of receipt of the statutory notice under Section 138 proviso (c).
Can a complaint filed before accrual of cause of action under Section 142 be maintained?	No, a complaint filed before expiry of fifteen days from receipt of notice is premature and not maintainable.
Does Section 142(1)(b) permit condonation of delay?	Yes, the proviso to Section 142(1)(b) permits the Court to take cognizance after the prescribed period if sufficient cause for delay is shown.
What must the complainant prove for condonation under the proviso to Section 142(1)(b)?	The complainant must satisfy the Court that he had sufficient cause for not making the complaint within the prescribed period.
Can delay in filing the complaint under Section 142(1)(b) be condoned automatically?	No, delay can be condoned only if the Court is satisfied that sufficient cause is shown.
What is the minimum rank of court competent to try an offence under Section 138 as per Section 142(1)(c)?	No court inferior to a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try an offence punishable under Section 138.
Can a Judicial Magistrate Second Class try an offence under Section 138?	No, a court inferior to a Metropolitan Magistrate or Judicial Magistrate First Class cannot try an offence under Section 138.
What is the subject matter of Section 142(2) of the Negotiable Instruments Act, 1881?	Section 142(2) deals with the territorial jurisdiction for inquiry and trial of an offence under Section 138.
What is the controlling phrase used in Section 142(2)?	Section 142(2) states that the offence under Section 138 shall be inquired into and tried only by the court within whose local jurisdiction the specified bank branch is situated.
What is the jurisdiction rule under Section 142(2)(a)?	If the cheque is delivered for collection through an account, jurisdiction lies where the branch of the bank in which the payee or holder in due course maintains the account is situated.
When does Section 142(2)(a) apply?	Section 142(2)(a) applies when the cheque is delivered for collection through an account.
Which bank branch is relevant under Section 142(2)(a)?	The relevant branch is the branch of the bank where the payee or holder in due course maintains the account.
Under Section 142(2)(a), is jurisdiction based on the drawer’s bank or the payee’s bank?	Jurisdiction is based on the branch of the payee’s or holder in due course’s bank where the account is maintained.
What is the jurisdiction rule under Section 142(2)(b)?	If the cheque is presented for payment otherwise than through an account, jurisdiction lies where the branch of the drawee bank in which the drawer maintains the account is situated.
When does Section 142(2)(b) apply?	Section 142(2)(b) applies when the cheque is presented for payment by the payee or holder in due course otherwise than through an account.
Which bank branch is relevant under Section 142(2)(b)?	The relevant branch is the branch of the drawee bank where the drawer maintains the account.
Under Section 142(2)(b), is jurisdiction based on the payee’s bank or the drawer’s bank?	Jurisdiction is based on the branch of the drawee bank where the drawer maintains the account.
What is the purpose of the Explanation to Section 142(2)?	The Explanation clarifies the deemed place of delivery for collection under clause (a).
What is the deeming fiction under the Explanation to Section 142(2)(a)?	Where a cheque is delivered for collection at any branch of the payee’s or holder in due course’s bank, it shall be deemed to have been delivered to the branch where such payee or holder in due course maintains the account.
If the payee deposits the cheque at a different branch of his bank, which branch determines jurisdiction under the Explanation to Section 142(2)(a)?	The branch where the payee or holder in due course actually maintains the account determines jurisdiction.
Does Section 142(2) override the earlier rule based on place of dishonour alone?	Yes, Section 142(2) creates a specific statutory rule of territorial jurisdiction for Section 138 cases.
What is the combined effect of Section 138 proviso (c) and Section 142(1)(b)?	After the drawer fails to pay within fifteen days of receipt of notice under Section 138 proviso (c), the complainant must file the complaint within one month under Section 142(1)(b).
Can a complaint under Section 138 be filed immediately after issuing notice?	No, the complaint can be filed only after the drawer fails to pay within fifteen days of receipt of notice, when cause of action arises.
Which sections together create the procedural scheme for cheque dishonour prosecution?	Sections 138 and 142 together create the substantive offence, conditions precedent, cognizance requirements, limitation, and territorial jurisdiction for cheque dishonour prosecution.
What is the leading case holding that a complaint filed before expiry of 15 days from receipt of notice is premature?	The leading case is Yogendra Pratap Singh v. Savitri Pandey, (2014) 10 SCC 713.
What was held in Yogendra Pratap Singh v. Savitri Pandey regarding Section 142?	The Supreme Court held that a complaint under Section 138 filed before expiry of fifteen days from the date of receipt of statutory notice is premature and not maintainable.
What is the leading case on pre-amendment territorial jurisdiction under Section 142?	The leading case is Dashrath Rupsingh Rathod v. State of Maharashtra, (2014) 9 SCC 129.
What was held in Dashrath Rupsingh Rathod v. State of Maharashtra regarding territorial jurisdiction?	Before the 2015 amendment, the Supreme Court held that jurisdiction ordinarily lay where the drawee bank dishonoured the cheque, but this position was later altered by statutory amendment inserting Section 142(2).
What is the leading case affirming the post-amendment jurisdiction rule under Section 142(2)?	The leading case is Bridgestone India (P) Ltd. v. Inderpal Singh, (2016) 2 SCC 75.
What was held in Bridgestone India (P) Ltd. v. Inderpal Singh regarding Section 142(2)(a)?	The Supreme Court held that after the 2015 amendment, jurisdiction under Section 138 lies at the place where the cheque is delivered for collection through the account of the payee or holder in due course, i.e., the branch where such account is maintained.
What is the effect of the 2015 amendment on Dashrath Rupsingh Rathod as recognized in later decisions?	The 2015 amendment inserting Section 142(2) and Section 142A statutorily altered the territorial jurisdiction rule laid down in Dashrath Rupsingh Rathod, and later courts have treated the earlier position as superseded for post-amendment application.
Is Section 142(2) regarded as a legislative response to Dashrath Rupsingh Rathod?	Yes, later judicial discussions have recognized that insertion of Section 142(2) was a direct legislative response to the rule declared in Dashrath Rupsingh Rathod.
What is the practical exam rule for territorial jurisdiction under Section 142(2)?	For exam purposes, if the cheque is deposited through the payee’s account, jurisdiction lies where the payee’s account branch is situated; if presented otherwise than through an account, jurisdiction lies where the drawer’s drawee bank branch is situated.
What is the subject matter of Section 142A of the Negotiable Instruments Act, 1881?	Section 142A deals with validation for transfer of pending cases and consolidation of jurisdiction in cheque dishonour cases under Section 138.
What is the opening effect of Section 142A(1)?	Section 142A(1) begins with a non-obstante clause overriding the Code of Criminal Procedure, 1973 and any judgment, decree, order or direction of any court.
What is validated under Section 142A(1)?	All cases transferred to the court having jurisdiction under Section 142(2), as amended by the Negotiable Instruments (Amendment) Ordinance, 2015, are validated under Section 142A(1).
To which transferred cases does Section 142A(1) apply?	Section 142A(1) applies to all cases transferred to the court having jurisdiction under Section 142(2) as amended by the 2015 Ordinance.
What is the legal fiction created by Section 142A(1)?	The transferred cases shall be deemed to have been transferred under the Act as if Section 142(2) had been in force at all material times.
What is the retrospective effect under Section 142A(1)?	Section 142A(1) gives retrospective validation by treating amended Section 142(2) as if it had been in force at all material times.
Does Section 142A(1) override prior judicial orders or directions on jurisdiction?	Yes, Section 142A(1) overrides any judgment, decree, order or direction of any court.
Which amendment is specifically referred to in Section 142A(1)?	Section 142A(1) specifically refers to Section 142(2) as amended by the Negotiable Instruments (Amendment) Ordinance, 2015.
What is the subject matter of Section 142A(2) of the Negotiable Instruments Act, 1881?	Section 142A(2) deals with filing of all subsequent complaints against the same drawer before the same court where an earlier complaint is pending.
What is the opening effect of Section 142A(2)?	Section 142A(2) begins with a non-obstante clause overriding Section 142(2) and Section 142A(1).
When does Section 142A(2) apply?	Section 142A(2) applies where the payee or holder in due course has filed a complaint against the drawer in the court having jurisdiction under Section 142(2), or the case has been transferred to that court under Section 142A(1), and such complaint is pending there.
Who must have filed the earlier complaint for Section 142A(2) to apply?	The earlier complaint must have been filed by the payee or the holder in due course against the same drawer.
What is the condition regarding pendency under Section 142A(2)?	The earlier complaint must be pending in the court having jurisdiction under Section 142(2) or in the court to which it was transferred under Section 142A(1).
What is the rule regarding subsequent complaints under Section 142A(2)?	All subsequent complaints arising out of Section 138 against the same drawer shall be filed before the same court.
Against whom must the subsequent complaints arise for Section 142A(2) to apply?	The subsequent complaints must arise under Section 138 against the same drawer.
Is territorial jurisdiction under Section 142(2) relevant for subsequent complaints once Section 142A(2) applies?	No, once Section 142A(2) applies, all subsequent complaints must be filed before the same court irrespective of territorial jurisdiction under Section 142(2).
Does it matter under Section 142A(2) whether the subsequent cheques were delivered for collection or presented for payment within that court’s territorial jurisdiction?	No, Section 142A(2) applies irrespective of whether those cheques were delivered for collection or presented for payment within the territorial jurisdiction of that court.
What is the object of Section 142A(2)?	The object of Section 142A(2) is to ensure consolidation of all subsequent Section 138 complaints against the same drawer before one court.
Can multiple later complaints against the same drawer be split across different courts after Section 142A(2) applies?	No, all subsequent complaints must be filed before the same court where the earlier complaint is pending.
What is the subject matter of Section 142A(3) of the Negotiable Instruments Act, 1881?	Section 142A(3) deals with transfer of multiple pending prosecutions filed by the same payee or holder in due course against the same drawer when such prosecutions are pending in different courts on commencement of the 2015 Amendment Act.
When does Section 142A(3) apply?	Section 142A(3) applies when, on the date of commencement of the Negotiable Instruments (Amendment) Act, 2015, more than one prosecution filed by the same payee or holder in due course against the same drawer is pending before different courts.
What is the relevant date for applying Section 142A(3)?	The relevant date is the date of commencement of the Negotiable Instruments (Amendment) Act, 2015.
What is the multiplicity condition under Section 142A(3)?	More than one prosecution must be pending before different courts.
Who must be common in all prosecutions for Section 142A(3) to apply?	The same payee or holder in due course and the same drawer must be common in all such prosecutions.
What must happen before transfer under Section 142A(3)?	The fact that multiple prosecutions are pending before different courts must be brought to the notice of the court.
What is the duty of the court under Section 142A(3)?	The court shall transfer the case to the court having jurisdiction under Section 142(2), as amended, before which the first case was filed and is pending.
To which court must cases be transferred under Section 142A(3)?	Cases must be transferred to the court having jurisdiction under amended Section 142(2) before which the first case was filed and is pending.
What is the significance of the “first case” under Section 142A(3)?	The first case filed and pending determines the court to which all other pending prosecutions are to be transferred.
Does Section 142A(3) also employ retrospective validation?	Yes, Section 142A(3) treats the transfer as if Section 142(2), as amended, had been in force at all material times.
What is the legal fiction under Section 142A(3)?	Pending prosecutions are to be transferred to the court where the first case was filed and is pending, as if amended Section 142(2) had been in force at all material times.
What is the combined effect of Sections 142(2) and 142A?	Section 142(2) fixes territorial jurisdiction for Section 138 cases, while Section 142A validates transfers, gives retrospective effect to the amended rule, and consolidates multiple complaints against the same drawer before one court.
What is the practical exam rule under Section 142A(1)?	Transfers of pending Section 138 cases to the court having jurisdiction under amended Section 142(2) are statutorily validated retrospectively.
What is the practical exam rule under Section 142A(2)?	Once one complaint by the payee or holder in due course against the same drawer is pending in the competent court, all subsequent Section 138 complaints against that drawer must be filed in the same court.
What is the practical exam rule under Section 142A(3)?	If multiple complaints by the same payee or holder in due course against the same drawer were pending in different courts on commencement of the 2015 Amendment Act, all such cases must be transferred to the court where the first case was filed and is pending.
Does Section 142A operate notwithstanding the Code of Criminal Procedure, 1973?	Yes, Section 142A(1) expressly overrides the Code of Criminal Procedure, 1973.
Does Section 142A override earlier judicial pronouncements on territorial jurisdiction?	Yes, Section 142A(1) expressly overrides any judgment, decree, order or direction of any court and validates transfers under the amended jurisdictional regime.
Which sections together now govern cognizance, territorial jurisdiction, and transfer of cheque dishonour cases?	Sections 142 and 142A together govern cognizance, territorial jurisdiction, validation of transfers, and consolidation of pending and subsequent cheque dishonour cases.
What is the leading case recognizing the post-amendment jurisdiction scheme under Sections 142(2) and 142A?	The leading case is Bridgestone India (P) Ltd. v. Inderpal Singh, (2016) 2 SCC 75.
What was held in Bridgestone India (P) Ltd. v. Inderpal Singh regarding the amended jurisdiction scheme?	The Supreme Court recognized that after the 2015 amendment, jurisdiction in Section 138 cases is governed by Section 142(2), and the amended statutory scheme overrides the earlier position declared in Dashrath Rupsingh Rathod.
What is the leading case discussing the validity of legislative change overcoming Dashrath Rupsingh Rathod?	The leading case is Bridgestone India (P) Ltd. v. Inderpal Singh, (2016) 2 SCC 75.
What is the exam significance of Section 142A?	Section 142A is the validating and consolidation provision that retrospectively cures transfers of pending cases and mandates one-forum adjudication of multiple Section 138 complaints against the same drawer.
What is the subject matter of Section 143 of the Negotiable Instruments Act, 1881?	Section 143 deals with the power of the Court to try cases under this Chapter summarily.
What is the opening effect of Section 143(1)?	Section 143(1) begins with a non-obstante clause and operates notwithstanding anything contained in the Code of Criminal Procedure, 1973.
To which offences does Section 143 apply?	Section 143 applies to all offences under Chapter XVII of the Negotiable Instruments Act, 1881.
Which courts are competent to try offences under this Chapter as per Section 143(1)?	All offences under this Chapter shall be tried by a Judicial Magistrate of the first class or by a Metropolitan Magistrate.
Can a court inferior to a Judicial Magistrate First Class try offences under Section 143?	No, offences under this Chapter shall be tried only by a Judicial Magistrate of the first class or by a Metropolitan Magistrate.
What mode of trial is prescribed under Section 143(1)?	Section 143(1) prescribes summary trial for all offences under this Chapter.
Which provisions of the Code of Criminal Procedure apply to trials under Section 143(1)?	The provisions of Sections 262 to 265 of the Code of Criminal Procedure, 1973 apply, as far as may be, to such trials.
Are Sections 262 to 265 CrPC applied absolutely under Section 143(1)?	No, Sections 262 to 265 CrPC apply only as far as may be to trials under Section 143(1).
What is the first proviso to Section 143(1) about?	The first proviso to Section 143(1) permits enhanced sentencing powers in case of conviction in a summary trial under this section.
What sentence of imprisonment may be passed in a summary trial under the first proviso to Section 143(1)?	In a summary trial under Section 143, the Magistrate may pass a sentence of imprisonment for a term not exceeding one year.
Can the Magistrate impose fine exceeding five thousand rupees in a summary trial under Section 143?	Yes, under the first proviso to Section 143(1), the Magistrate may impose an amount of fine exceeding five thousand rupees.
How does the first proviso to Section 143(1) modify the normal summary trial limitation?	It authorizes the Magistrate in a summary trial under Section 143 to impose imprisonment up to one year and fine exceeding five thousand rupees.
What is the second proviso to Section 143(1) about?	The second proviso to Section 143(1) empowers the Magistrate to convert the case from summary trial to regular trial in specified circumstances.
When can the Magistrate stop trying the case summarily under the second proviso to Section 143(1)?	The Magistrate may stop summary trial when it appears at the commencement of or during the trial that a sentence exceeding one year may have to be passed or that for any other reason it is undesirable to try the case summarily.
At what stages can the Magistrate decide not to continue summary trial under Section 143(1) second proviso?	The Magistrate can do so at the commencement of, or in the course of, the summary trial.
What is the first ground for converting a summary trial under the second proviso to Section 143(1)?	The first ground is that the nature of the case is such that a sentence of imprisonment for a term exceeding one year may have to be passed.
What is the second ground for converting a summary trial under the second proviso to Section 143(1)?	The second ground is that for any other reason it is undesirable to try the case summarily.
What must the Magistrate do before converting a summary trial under the second proviso to Section 143(1)?	The Magistrate must hear the parties and record an order to that effect.
Is recording reasons necessary before abandoning summary trial under Section 143(1)?	Yes, the Magistrate must record an order after hearing the parties before proceeding otherwise than summarily.
What happens to witnesses already examined when the Magistrate converts the case from summary trial under Section 143(1)?	The Magistrate shall recall any witness who may have been examined.
How is the case to proceed after conversion from summary trial under Section 143(1)?	The Magistrate shall proceed to hear or rehear the case in the manner provided by the Code of Criminal Procedure, 1973.
What is the subject matter of Section 143(2) of the Negotiable Instruments Act, 1881?	Section 143(2) deals with day-to-day continuation of trial in cases under Section 143.
What is the rule under Section 143(2) regarding continuity of trial?	The trial shall, so far as practicable, consistently with the interests of justice, be continued from day to day until its conclusion.
Is day-to-day trial under Section 143(2) absolute?	No, it is to be followed so far as practicable and consistently with the interests of justice.
When can the trial be adjourned beyond the following day under Section 143(2)?	The trial may be adjourned beyond the following day only if the Court finds such adjournment necessary and records reasons in writing.
Is recording reasons mandatory for adjournment beyond the next day under Section 143(2)?	Yes, the Court must record in writing the reasons for adjourning the trial beyond the following day.
What is the subject matter of Section 143(3) of the Negotiable Instruments Act, 1881?	Section 143(3) deals with expeditious disposal of trials under this section.
What is the mandate under Section 143(3)?	Every trial under this section shall be conducted as expeditiously as possible.
What is the time-frame indicated in Section 143(3) for conclusion of trial?	An endeavour shall be made to conclude the trial within six months from the date of filing of the complaint.
From which date is the six-month period under Section 143(3) computed?	The six-month period is computed from the date of filing of the complaint.
Is the six-month period under Section 143(3) mandatory or directory?	The six-month period is directory, as the section states that an endeavour shall be made to conclude the trial within six months.
What is the combined effect of Section 143(1), (2) and (3)?	Section 143 provides for summary trial by JMFC or Metropolitan Magistrate, day-to-day hearing so far as practicable, and expeditious disposal with an endeavour to conclude the case within six months.
Which Chapter of the Negotiable Instruments Act is referred to in Section 143?	Section 143 refers to offences under Chapter XVII of the Negotiable Instruments Act, 1881.
Which sections of the CrPC are specifically incorporated by Section 143?	Sections 262 to 265 of the Code of Criminal Procedure, 1973 are specifically incorporated by Section 143, as far as may be.
Can a Magistrate in a summary trial under Section 143 impose imprisonment exceeding one year?	No, in a summary trial under Section 143, imprisonment cannot exceed one year.
If a sentence exceeding one year may be necessary, what must the Magistrate do under Section 143?	The Magistrate must stop trying the case summarily, hear the parties, record an order, recall examined witnesses, and then hear or rehear the case in the regular manner under the Code.
What is the practical exam rule under Section 143?	Section 143 is the special procedural provision for cheque dishonour cases requiring summary trial by JMFC/MM, permitting enhanced summary punishment up to one year, allowing conversion to regular trial where necessary, and directing day-to-day and speedy disposal within an endeavour of six months.
Which sections together govern forum and summary procedure for cheque dishonour trials?	Sections 142 and 143 together govern the competent court, cognizance, and summary procedure for trial of cheque dishonour cases.
What is the leading case on expeditious and summary disposal of cheque dishonour complaints under the NI Act?	The leading case is Indian Bank Association v. Union of India, (2014) 5 SCC 590.
What was held in Indian Bank Association v. Union of India regarding Section 143?	The Supreme Court issued directions to ensure speedy trial of Section 138 complaints and emphasized summary procedure, day-to-day hearing, and expeditious disposal in tune with Sections 143 to 147.
What is the leading case clarifying that summary trial under Section 143 is the legislative mandate though conversion is permissible?	The leading case is J.V. Baharuni v. State of Gujarat, (2014) 10 SCC 494.
What was held in J.V. Baharuni v. State of Gujarat regarding Section 143?	The Supreme Court emphasized that the legislative intent is speedy and summary disposal of cheque dishonour cases, though the Magistrate may adopt summons procedure where the case is not fit for summary trial in accordance with the proviso.
What is the subject matter of Section 143A of the Negotiable Instruments Act, 1881?	Section 143A deals with the power of the Court to direct payment of interim compensation in cheque dishonour cases under Section 138.
When was Section 143A inserted in the Negotiable Instruments Act, 1881?	Section 143A was inserted by the Negotiable Instruments (Amendment) Act, 2018.
What is the opening effect of Section 143A(1)?	Section 143A(1) begins with a non-obstante clause and operates notwithstanding anything contained in the Code of Criminal Procedure, 1973.
Which court can exercise power under Section 143A(1)?	The Court trying an offence under Section 138 can exercise the power under Section 143A(1).
Is grant of interim compensation under Section 143A mandatory or discretionary?	Grant of interim compensation under Section 143A is discretionary, as the section uses the word “may”.
Against whom can interim compensation be ordered under Section 143A(1)?	Interim compensation can be ordered against the drawer of the cheque.
In whose favour can interim compensation be ordered under Section 143A(1)?	Interim compensation can be ordered in favour of the complainant.
At what stage can interim compensation be ordered in a summary trial under Section 143A(1)(a)?	In a summary trial, interim compensation may be ordered when the drawer pleads not guilty to the accusation made in the complaint.
At what stage can interim compensation be ordered in a summons case under Section 143A(1)(a)?	In a summons case, interim compensation may be ordered when the drawer pleads not guilty to the accusation made in the complaint.
What is the condition precedent under Section 143A(1)(a) for summary trial or summons case?	The condition precedent is that the drawer pleads not guilty to the accusation made in the complaint.
At what stage can interim compensation be ordered in cases other than summary trial or summons case under Section 143A(1)(b)?	In any other case, interim compensation may be ordered upon framing of charge.
What is the maximum limit of interim compensation under Section 143A(2)?	The interim compensation under Section 143A shall not exceed twenty per cent of the amount of the cheque.
Can the Court award more than 20% of the cheque amount as interim compensation under Section 143A?	No, the interim compensation cannot exceed twenty per cent of the amount of the cheque.
Is 20% interim compensation automatic under Section 143A(2)?	No, twenty per cent is only the upper limit and the Court may award any amount up to that limit.
Within what period must interim compensation be paid under Section 143A(3)?	Interim compensation must be paid within sixty days from the date of the order under Section 143A(1).
Can the Court extend time for payment of interim compensation under Section 143A(3)?	Yes, the Court may extend the time for payment by a further period not exceeding thirty days.
What is the maximum extended period available under Section 143A(3)?	The maximum extended period is a further thirty days beyond the initial sixty days.
On what ground can extension of time be granted under Section 143A(3)?	Extension can be granted on sufficient cause being shown by the drawer of the cheque.
Who must show sufficient cause for extension under Section 143A(3)?	The drawer of the cheque must show sufficient cause for extension.
What happens if the drawer is acquitted after paying interim compensation under Section 143A(4)?	If the drawer is acquitted, the Court shall direct the complainant to repay the amount of interim compensation to the drawer with interest.
Is repayment on acquittal under Section 143A(4) mandatory or discretionary?	Repayment on acquittal is mandatory, as the section uses the word “shall”.
Who is liable to repay interim compensation on acquittal under Section 143A(4)?	The complainant is liable to repay the interim compensation on acquittal of the drawer.
To whom is repayment to be made under Section 143A(4)?	Repayment is to be made to the drawer of the cheque.
Is interest payable on refund under Section 143A(4)?	Yes, the complainant must repay the interim compensation with interest.
At what rate is interest payable under Section 143A(4)?	Interest is payable at the bank rate as published by the Reserve Bank of India prevalent at the beginning of the relevant financial year.
How is the applicable bank rate determined under Section 143A(4)?	The applicable rate is the bank rate published by the Reserve Bank of India prevailing at the beginning of the relevant financial year.
Within what time must the complainant repay interim compensation after acquittal under Section 143A(4)?	The complainant must repay the amount with interest within sixty days from the date of the order.
Can the Court extend time for repayment by the complainant under Section 143A(4)?	Yes, the Court may extend the time for repayment by a further period not exceeding thirty days.
On what ground can extension be granted to the complainant under Section 143A(4)?	Extension can be granted on sufficient cause being shown by the complainant.
What is the maximum extended period for repayment under Section 143A(4)?	The maximum extended period for repayment is a further thirty days beyond the initial sixty days.
How is interim compensation recoverable under Section 143A(5)?	Interim compensation may be recovered as if it were a fine under Section 421 of the Code of Criminal Procedure, 1973.
Which CrPC provision governs recovery under Section 143A(5)?	Recovery under Section 143A(5) is governed by Section 421 of the Code of Criminal Procedure, 1973.
What is the subject matter of Section 143A(6)?	Section 143A(6) deals with adjustment of interim compensation against final fine or compensation.
What happens to the fine imposed under Section 138 when interim compensation has already been paid or recovered?	The amount of fine imposed under Section 138 shall be reduced by the amount paid or recovered as interim compensation under Section 143A.
What happens to compensation awarded under Section 357 CrPC when interim compensation has already been paid or recovered?	The amount of compensation awarded under Section 357 CrPC shall be reduced by the amount paid or recovered as interim compensation under Section 143A.
Can there be double recovery of interim compensation and final compensation under Section 143A(6)?	No, Section 143A(6) prevents double recovery by requiring reduction of the final fine or compensation by the amount already paid or recovered.
Is Section 143A applicable only to offences under Section 138?	Yes, Section 143A applies only to the Court trying an offence under Section 138.
What is the practical scheme of Section 143A?	Section 143A empowers the trial court to award discretionary interim compensation up to 20% at the plea or charge stage, provides timelines for payment, mandates refund with RBI bank-rate interest on acquittal, allows recovery as fine, and mandates adjustment against final fine or compensation.
What is the leading Supreme Court case on prospective application of Section 143A?	The leading case is G.J. Raja v. Tejraj Surana, (2019) 19 SCC 469.
What was held in G.J. Raja v. Tejraj Surana regarding Section 143A?	The Supreme Court held that Section 143A is prospective in operation and applies only where the offence under Section 138 was committed after the provision came into force.
Can Section 143A be applied to complaints arising from cheques dishonoured before its commencement?	No, as per G.J. Raja v. Tejraj Surana, Section 143A cannot ordinarily be applied retrospectively to offences committed before its commencement.
What is the key exam point on Section 143A?	Section 143A creates a discretionary statutory mechanism for interim compensation up to 20% in pending Section 138 trials, but the provision is prospective as held in G.J. Raja v. Tejraj Surana.
What is the subject matter of Section 144 of the Negotiable Instruments Act, 1881?	Section 144 deals with the mode of service of summons in proceedings under Chapter XVII of the Negotiable Instruments Act, 1881.
What is the opening effect of Section 144(1)?	Section 144(1) begins with a non-obstante clause and operates notwithstanding anything contained in the Code of Criminal Procedure, 1973.
For what purpose does Section 144 apply?	Section 144 applies for the purposes of Chapter XVII of the Negotiable Instruments Act, 1881.
Who may issue summons under Section 144(1)?	A Magistrate issuing a summons to an accused or a witness may act under Section 144(1).
To whom can summons be issued under Section 144(1)?	Summons under Section 144(1) may be issued to an accused or a witness.
What special mode of service is permitted under Section 144(1)?	The Magistrate may direct that a copy of summons be served by speed post or by such courier services as are approved by a Court of Session.
Can summons under Section 144(1) be served by speed post?	Yes, summons may be served by speed post under Section 144(1).
Can summons under Section 144(1) be served by courier?	Yes, summons may be served by such courier services as are approved by a Court of Session.
Who approves the courier services under Section 144(1)?	The courier services must be approved by a Court of Session.
At which place may summons be served under Section 144(1)?	A copy of summons may be served at the place where the accused or witness ordinarily resides or carries on business or personally works for gain.
Can summons be served at the place where the accused ordinarily resides under Section 144(1)?	Yes, summons may be served at the place where the accused ordinarily resides.
Can summons be served at the place where the accused carries on business under Section 144(1)?	Yes, summons may be served at the place where the accused carries on business.
Can summons be served at the place where the accused personally works for gain under Section 144(1)?	Yes, summons may be served at the place where the accused personally works for gain.
Does Section 144(1) also apply to witnesses?	Yes, Section 144(1) equally applies to service of summons on a witness.
What document may be served under Section 144(1)?	A copy of summons may be directed to be served under Section 144(1).
What is the subject matter of Section 144(2)?	Section 144(2) deals with deemed due service of summons on acknowledgment or refusal endorsement.
When can the Court declare summons to be duly served under Section 144(2)?	The Court may declare summons duly served when an acknowledgment purporting to be signed by the accused or witness, or an endorsement of refusal by authorised postal or courier personnel, has been received.
Is actual acceptance by the accused necessary under Section 144(2)?	No, if refusal to accept delivery is endorsed by authorised postal or courier personnel, the Court may still declare the summons duly served.
What kind of acknowledgment is contemplated under Section 144(2)?	An acknowledgment purporting to be signed by the accused or the witness is contemplated under Section 144(2).
Who may make a valid refusal endorsement under Section 144(2)?	A person authorised by the postal department or the courier services may make the endorsement of refusal under Section 144(2).
What must the endorsement under Section 144(2) state?	The endorsement must state that the accused or the witness refused to take delivery of summons.
Is the Court bound to declare due service under Section 144(2)?	No, the Court may declare that the summons has been duly served.
What is the practical effect of refusal of summons under Section 144(2)?	Refusal of summons can be treated as due service if duly endorsed by authorised postal or courier personnel and received by the Court.
What is the subject matter of Section 145 of the Negotiable Instruments Act, 1881?	Section 145 deals with evidence on affidavit in proceedings under Chapter XVII of the Negotiable Instruments Act, 1881.
What is the opening effect of Section 145(1)?	Section 145(1) begins with a non-obstante clause and operates notwithstanding anything contained in the Code of Criminal Procedure, 1973.
Whose evidence may be given on affidavit under Section 145(1)?	The evidence of the complainant may be given by him on affidavit under Section 145(1).
Can the complainant in a Section 138 case give evidence by affidavit?	Yes, the complainant may give evidence by affidavit under Section 145(1).
Is affidavit evidence by the complainant mandatory under Section 145(1)?	No, Section 145(1) is enabling in nature, as it provides that the evidence of the complainant may be given on affidavit.
In what proceedings can the complainant’s affidavit be read under Section 145(1)?	The complainant’s affidavit may be read in evidence in any enquiry, trial or other proceeding under the Code of Criminal Procedure relating to proceedings under this Chapter.
Is affidavit evidence under Section 145(1) absolute and unconditional?	No, it is subject to all just exceptions.
What is meant by “subject to all just exceptions” under Section 145(1)?	It means the affidavit may be read in evidence, but it remains subject to lawful objections as to admissibility or other valid evidentiary objections.
Can affidavit evidence be read in enquiry proceedings under Section 145(1)?	Yes, it may be read in evidence in any enquiry under the Code.
Can affidavit evidence be read in trial proceedings under Section 145(1)?	Yes, it may be read in evidence in any trial under the Code.
Can affidavit evidence be read in other proceedings under Section 145(1)?	Yes, it may be read in evidence in any other proceeding under the Code relating to matters under this Chapter.
What is the subject matter of Section 145(2)?	Section 145(2) deals with summoning and examining a person who has given evidence on affidavit.
Does the Court have power to summon a person who gave evidence on affidavit under Section 145(2)?	Yes, the Court may summon and examine any person giving evidence on affidavit as to the facts contained therein.
When is summoning under Section 145(2) discretionary?	It is discretionary when the Court, if it thinks fit, decides to summon and examine the deponent.
When is summoning under Section 145(2) mandatory?	It is mandatory when the prosecution or the accused applies for summoning and examining the person giving evidence on affidavit.
Can the accused insist on cross-examining the complainant whose evidence is by affidavit under Section 145(2)?	Yes, on the application of the accused, the Court shall summon and examine the person giving evidence on affidavit.
Can the prosecution seek summoning of a person who gave evidence on affidavit under Section 145(2)?	Yes, on the application of the prosecution, the Court shall summon and examine the person giving evidence on affidavit.
What is the scope of examination under Section 145(2)?	The person giving evidence on affidavit may be summoned and examined as to the facts contained in the affidavit.
What is the leading Supreme Court case on evidence by affidavit under Section 145?	The leading case is Mandvi Cooperative Bank Ltd. v. Nimesh B. Thakore, (2010) 3 SCC 83.
What was held in Mandvi Cooperative Bank Ltd. v. Nimesh B. Thakore regarding Section 145?	The Supreme Court held that Section 145 expressly permits only the complainant to give evidence on affidavit and the accused cannot claim a similar right unless otherwise provided by law.
Can the accused file examination-in-chief by affidavit as of right under Section 145?	No, as held in Mandvi Cooperative Bank Ltd. v. Nimesh B. Thakore, the accused has no statutory right under Section 145 to give evidence on affidavit as examination-in-chief.
What is the subject matter of Section 146 of the Negotiable Instruments Act, 1881?	Section 146 deals with the bank’s slip or memo as prima facie evidence of dishonour of cheque.
What is the evidentiary rule under Section 146?	On production of the bank’s slip or memo having the official mark denoting dishonour, the Court shall presume the fact of dishonour of the cheque unless and until such fact is disproved.
Is the presumption under Section 146 mandatory or discretionary?	The presumption under Section 146 is mandatory, as the section uses the word “shall presume”.
What document triggers the presumption under Section 146?	Production of the bank’s slip or memo having thereon the official mark denoting that the cheque has been dishonoured triggers the presumption.
What must the bank’s slip or memo contain under Section 146?	It must bear the official mark denoting that the cheque has been dishonoured.
In what proceedings does Section 146 apply?	Section 146 applies in every proceeding under Chapter XVII of the Negotiable Instruments Act, 1881.
What fact is presumed under Section 146?	The Court shall presume the fact that the cheque has been dishonoured.
Is the presumption under Section 146 conclusive?	No, the presumption is rebuttable and continues unless and until the fact of dishonour is disproved.
Who can rebut the presumption under Section 146?	The accused or any party disputing dishonour may rebut the presumption by disproving the fact of dishonour.
What is the nature of the bank memo under Section 146?	The bank’s slip or memo is prima facie evidence of the fact of dishonour.
What is the practical effect of Section 146?	Section 146 relieves the complainant from formally proving dishonour once the bank memo with official mark is produced, subject to rebuttal by the accused.
What is the combined effect of Sections 144, 145 and 146 of the Negotiable Instruments Act, 1881?	Sections 144, 145 and 146 create a special speedy-trial procedure by permitting service of summons through speed post/courier, allowing complainant’s evidence on affidavit with a right of summoning for examination, and creating a rebuttable statutory presumption of dishonour on production of the bank memo.
What is the key exam point on Sections 144 to 146?	Sections 144 to 146 are special procedural and evidentiary provisions for cheque dishonour cases designed to ensure speedy service, simplified proof through affidavit, and presumptive proof of dishonour through bank memo.
What is the subject matter of Section 147 of the Negotiable Instruments Act, 1881?	Section 147 declares that every offence punishable under the Negotiable Instruments Act, 1881 is compoundable.
What is the opening effect of Section 147?	Section 147 begins with a non-obstante clause and operates notwithstanding anything contained in the Code of Criminal Procedure, 1973.
What is the legal effect of Section 147?	Section 147 makes every offence punishable under the Negotiable Instruments Act compoundable.
Are offences under Section 138 compoundable?	Yes, since Section 147 provides that every offence punishable under the Act is compoundable, an offence under Section 138 is compoundable.
Does Section 147 override the CrPC in matters of compounding?	Yes, Section 147 overrides the Code of Criminal Procedure, 1973 by virtue of its non-obstante clause.
What is the leading Supreme Court case on compounding under Section 147?	The leading case is Damodar S. Prabhu v. Sayed Babalal H., (2010) 5 SCC 663.
What was held in Damodar S. Prabhu v. Sayed Babalal H. regarding Section 147?	The Supreme Court held that offences under Section 138 are compoundable at all stages, subject to guidelines and graded costs to discourage delayed settlements.
What is the leading Supreme Court case holding that compounding can be permitted even after conviction?	The leading case is K.M. Ibrahim v. K.P. Mohammed, (2010) 1 SCC 798.
What was held in K.M. Ibrahim v. K.P. Mohammed regarding Section 147?	The Supreme Court held that compounding of an offence under Section 138 can be permitted even after conviction in view of the non-obstante clause in Section 147.
What is the key exam point on Section 147?	Section 147 is a special overriding provision making all offences under the Negotiable Instruments Act compoundable, including Section 138 offences, even at appellate or revisional stages subject to judicial guidelines.
What is the subject matter of Section 148 of the Negotiable Instruments Act, 1881?	Section 148 deals with the power of the Appellate Court to order payment pending appeal against conviction under Section 138.
When was Section 148 inserted in the Negotiable Instruments Act, 1881?	Section 148 was inserted by the Negotiable Instruments (Amendment) Act, 2018.
What is the opening effect of Section 148(1)?	Section 148(1) begins with a non-obstante clause and operates notwithstanding anything contained in the Code of Criminal Procedure, 1973.
In what kind of appeal does Section 148 apply?	Section 148 applies in an appeal by the drawer against conviction under Section 138.
Which court can exercise power under Section 148(1)?	The Appellate Court hearing an appeal by the drawer against conviction under Section 138 can exercise power under Section 148(1).
Against whom can an order under Section 148(1) be passed?	An order under Section 148(1) can be passed against the appellant who is the drawer convicted under Section 138.
Is deposit under Section 148(1) mandatory or discretionary?	The power to order deposit under Section 148(1) is discretionary as the section uses the word “may”, but once ordered, the sum shall be a minimum of twenty per cent.
What may the Appellate Court order under Section 148(1)?	The Appellate Court may order the appellant to deposit such sum pending appeal against conviction under Section 138.
What is the minimum amount that can be ordered to be deposited under Section 148(1)?	The amount ordered to be deposited under Section 148(1) shall be a minimum of twenty per cent of the fine or compensation awarded by the trial Court.
Can the Appellate Court direct deposit of less than 20% under Section 148(1)?	No, if the Appellate Court orders deposit under Section 148(1), the amount cannot be less than twenty per cent of the fine or compensation awarded by the trial Court.
On what amount is the 20% under Section 148(1) calculated?	The 20% is calculated on the fine or compensation awarded by the trial Court.
What is the effect of the proviso to Section 148(1)?	The proviso states that the amount payable under Section 148(1) shall be in addition to any interim compensation paid by the appellant under Section 143A.
Is the amount under Section 148(1) adjustable against interim compensation under Section 143A?	No, the proviso to Section 148(1) provides that the amount payable under Section 148(1) is in addition to any interim compensation paid under Section 143A.
Within what time must the amount under Section 148(1) be deposited?	The amount under Section 148(1) must be deposited within sixty days from the date of the order.
Can the Appellate Court extend time for deposit under Section 148(2)?	Yes, the Appellate Court may extend the time by a further period not exceeding thirty days.
What is the maximum extended period under Section 148(2)?	The maximum extended period under Section 148(2) is a further thirty days beyond the initial sixty days.
On what ground can extension be granted under Section 148(2)?	Extension can be granted on sufficient cause being shown by the appellant.
Who must show sufficient cause for extension under Section 148(2)?	The appellant must show sufficient cause for extension under Section 148(2).
What is the subject matter of Section 148(3)?	Section 148(3) deals with release of the deposited amount to the complainant during pendency of the appeal and refund on acquittal.
Can the Appellate Court release the deposited amount to the complainant during pendency of appeal?	Yes, the Appellate Court may direct release of the amount deposited by the appellant to the complainant at any time during the pendency of the appeal.
Is release of deposited amount under Section 148(3) mandatory or discretionary?	Release of the deposited amount under Section 148(3) is discretionary, as the section uses the word “may”.
What happens if the appellant is acquitted after release of the amount under Section 148(3)?	If the appellant is acquitted, the Court shall direct the complainant to repay to the appellant the amount so released with interest.
Is repayment by the complainant on acquittal under the proviso to Section 148(3) mandatory?	Yes, repayment is mandatory, as the proviso uses the word “shall”.
At what rate is interest payable on refund under the proviso to Section 148(3)?	Interest is payable at the bank rate as published by the Reserve Bank of India prevalent at the beginning of the relevant financial year.
Within what time must the complainant repay the released amount on acquittal under the proviso to Section 148(3)?	The complainant must repay the amount with interest within sixty days from the date of the order.
Can the Court extend time for repayment by the complainant under the proviso to Section 148(3)?	Yes, the Court may extend the time for repayment by a further period not exceeding thirty days.
What is the maximum extended period for repayment under the proviso to Section 148(3)?	The maximum extended period for repayment is a further thirty days beyond the initial sixty days.
On what ground can extension be granted to the complainant under the proviso to Section 148(3)?	Extension can be granted on sufficient cause being shown by the complainant.
What is the leading Supreme Court case on interpretation of Section 148?	The leading case is Surinder Singh Deswal v. Virender Gandhi, (2019) 11 SCC 341.
What was held in Surinder Singh Deswal v. Virender Gandhi regarding Section 148?	The Supreme Court held that though Section 148 uses the word “may”, the Appellate Court should ordinarily direct deposit of a minimum of 20% and the provision applies even to appeals arising from complaints filed before the 2018 amendment, so long as the appeal was pending after commencement.
Is Section 148 treated as prospective in the same way as Section 143A?	No, Section 148 has been treated differently, and in Surinder Singh Deswal v. Virender Gandhi the Supreme Court held it applicable to pending appeals even where the complaint was filed before the 2018 amendment.
What is the distinction between Section 143A and Section 148 for exam purposes?	Section 143A concerns interim compensation during trial and is prospective as held in G.J. Raja v. Tejraj Surana, whereas Section 148 concerns deposit pending appeal against conviction and has been applied to pending appeals as held in Surinder Singh Deswal v. Virender Gandhi.
Can the Appellate Court order deposit under Section 148 in an appeal against acquittal?	No, Section 148 applies specifically to an appeal by the drawer against conviction under Section 138.
Can Section 148 be invoked where there is no conviction under Section 138?	No, Section 148 can be invoked only when the appeal is by the drawer against conviction under Section 138.
What is the practical scheme of Section 148?	Section 148 empowers the Appellate Court in an appeal by a convicted drawer to direct deposit of at least 20% of the trial Court’s fine or compensation, in addition to Section 143A interim compensation, allows release to the complainant during appeal, and mandates refund with RBI bank-rate interest if the appellant is acquitted.
What is the key exam point on Section 148?	Section 148 is a special appellate safeguard in favour of the complainant requiring ordinarily a minimum 20% deposit by the convicted drawer pending appeal, distinct from Section 143A and generally applicable to pending appeals after the 2018 amendment as per Surinder Singh Deswal v. Virender Gandhi.

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