Negotiable Instruments Act 1881

The Negotiable Instruments Act 1881 came into force w.e.f 1.3.1882. It has 147 sections. Sec 138 to 142 were added on 1.4.1989 and Sec 143 to 147 was added in December 2002. The NI Act, 1881 is applicable to the whole of India.

What is “Negotiable Instrument”?

As per Sec.13 of Negotiable Instruments (NI) Act a “Negotiable Instrument” means a promissory note, bill of exchange or cheque payable either to order or to bearer.

Negotiable Instruments include:

1.    Promissory Note;

2.    Bill of Exchange; and

3.    Cheque.

→NEGOTIABILE INSTRUMENTS		→NOT-NEGOTIABLE INSTRUMENTS
1	Bank Draft	1	Fixed Deposit Receipt
2	Govt. Promissory Note	2	Share Certificate
3	Bill of lading	3	Withdrawal Slip from SB Account.
4	Share warrants & Dividend warrants	4	LIC Policy
5	Treasury Bills	5	Airway Bill
6	Hundi	6	Document of Title to immovable property
7	Certificate of Deposit & Commercial Paper	7	Currency Note: This itself is money (Sec 21 of Indian Currency Act)

As per Sec.11 of Indian Contract Act, 1872 a minor, a person of unsound mind (lunatic) and an un-discharged insolvent are not eligible for making a valid contract. However, u/s 26 of NI Act “a minor may draw, endorse and negotiate a negotiable instrument so as to bind all parties except himself.”

Book: A Bird on the Wing

Book: A Bird on the Wing

Author: OSHO

Chapter #1

Chapter title: Empty Your Cup

A disciple came to Bodhidharma and said, "Master, you told me to be empty. Now I have become empty. Now what else do you say?" Bodhidharma hit him hard with his staff on the head, and he said, "Go and throw this emptiness out."

If you say "I am empty," the "I am" is there, and the "I" cannot be empty. So emptiness cannot be claimed. No one can say, "I am empty," just as no one can say, "I am humble."

If you say, "I am humble," you are not. Who claims this humility? Humbleness cannot be claimed. If you are humble, you are humble, but you cannot say it. Not only can you not say it, you cannot feel that you are humble because the very feeling will give birth to the ego again. Be empty, but don't think that you are empty otherwise you have deceived yourself.

I have heard about a man who was traveling in a train for the first time, a villager. He was carrying his luggage on his head, thinking, "Putting it down will be too much for the train to carry, and I have paid only for my own self. I have purchased the ticket but I have not paid for the luggage." So he was carrying the luggage on his head. The train was carrying him and his luggage, and whether he carried it on his head or put it down made no difference to the train. Your mind is unnecessary luggage. It makes no difference to this existence that is carrying you; you are unnecessarily burdened. I say drop it.

The trees exist without the mind and exist more beautifully than any human being; the birds exist without the mind and exist in a more ecstatic state than any human being.

Look at children who are still not civilized, who are still wild. They exist without the mind, and even a Jesus or a Buddha will feel jealous of their innocence. There is no need for this mind. The whole world is going on and on without it. Why are you carrying it?

Once you can put it down, even for a single minute, your whole existence will be transformed. You will enter into a new dimension, the dimension of weightlessness.

That's what I'm going to give you: wings into the sky, into the heaven – weightlessness gives you these wings- and roots into the earth, a centering.

Banker Customer Relationship

 There are various kinds of banker- customer relationship. The important among them are as below:

1.    Debtor-Creditor Relationship : When a customer deposit money in the Bank, the Bank is Debtor and the Customer is  Creditor

2.    Creditor – Debtor Relationship: When a customer lends money from a Bank, the Bank is treated as Creditor and Customer as Debtor.

3.    Bailee-Bailor Relationship: In case of Safe Custody Services provided by banks, Bank is said to be a Bailee and the customers are called as Bailor.

4.    Trustee and Beneficiary Relationship: In case of Payee of Draft, the bank is trustee and the customers are beneficiaries.

5.    Lessor and Lessee Relationship:  In case of Locker facility, the Bank is said to be the Lessor and the customer is called as the Lessee.

6.    Pledgee and Pledger Relationship: In case of Pledge, the relationship between banks and customers becomes Pledgee and Pledger respectively.

7.    Mortgagee and Mortgagor Relationship: In case of Mortgage, the relationship between banks and customers becomes Mortgagee and mortgagor respectively.

8.    Assignee and assignor Relationship: In case of Assignment, the relationship between banks and customers are said to be assignee and assignor respectively.

9.    Agent – Principal Relationship: When banks collect Cheques, Bills etc or Pay Electricity bills, insurance premium, telephone bills, club fees etc, the relationship established between banks and customers are known as agent and principal respectively.

10.  Bank as Consultant: Banks these days help the customers by rendering consultancy services and advice. Hence, banks act as consultants.