The word ‘negotiation’ was defined in the NI Act, 1881 under Section:
14
Sec. 14 of the Negotiable Instruments Act, 1881 defines 'Negotiation': when a promissory note, bill of exchange or cheque is transferred to any person so as to constitute that person the holder thereof, the instrument is said to be negotiated.
The other provisions deal with different matters: Sec. 12 (negotiable instrument payable on demand), Sec. 13 (negotiable instrument defined) and Sec. 15 (indorsement).
Hence, the answer is 14.
The following one is absolutely essential for a special crossing :
Non-acceptance is a valid mode of dishonour for :
Days of grace under NI Act, 1881 applicable to :
Which section of the NI Act, 1881 justifies the dishonour of the cheque ?
| List – I | List – II |
| i. Inchoate stamped instrument | a. Union Bank of India Vs. Ankur Corp. |
| ii. Liability of acceptor of a negotiable instrument | b. Section 31 of the Negotiable Instrument Act |
| iii. Liability of an endorser | c. Section 35 of the Negotiable Instrument Act. |
| iv. Liability of the drawee of a cheque. | d. Section 20 of the Negotiable Instrument Act. |