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Section 135 - Law of place of payment governs dishonour, Section 136 - Instrument made, etc., out of India, but in accordance with the law of India, Section 137 - Presumption as to Foreign Law : Negotiable Instruments Act 1881

 

 

What is the Law of place of payment governs dishonour? What is Instrument made, etc., out of India, but in accordance with the law of India? Law of place of payment governs dishonour and Instrument made, etc., out of India, but in accordance with the law of India are defined under Section 135 and 136 of Negotiable Instruments Act 1881

Section 135 of Negotiable Instruments Act 1881: "Law of place of payment governs dishonour"

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, the law of the place where it is made payable determines what constitutes dishonour and what notice of dishonour is sufficient.

Illustration
A bill of exchange drawn and indorsed in 1[India], but accepted payable in France, is dishonoured. The indorsee causes it to be protested for such dishonour, and gives notice thereof in accordance with the law of France, though not in accordance with the rules herein contained in respect of bills which are not foreign. The notice is sufficient.

 

Section 136 of Negotiable Instruments Act 1881: "Instrument made, etc., out of India, but in accordance with the law of India"

If a negotiable instrument is made, drawn, accepted or indorsed outside India, but in accordance with the law of India, the circumstances that any agreement evidenced by such instrument is invalid according to the law of the country wherein it was entered into does not invalidate any subsequent acceptance or indorsement made thereon within India.

Section 137 of Negotiable Instruments Act 1881: "Presumption as to foreign law"

The law of any foreign country regarding promissory notes, bills of exchange and cheques shall be presumed to be the same as that of India, unless and until the contrary is proved.

 

Negotiable Instruments Act 1881

Section 121 - Estoppel against denying capacity of payee to indorse

Section 122 - Estoppel against denying signature or capacity of prior party

CHAPTER XIV
OF CROSSED CHEQUES

Section 123 - Cheque crossed generally

Section 124 - Cheque crossed specially

 

 

Section 125 - Crossing after issue

Section 126 - Payment of cheque crossed generally

Section 127 - Payment of cheque crossed specially more than once

Section 128 - Payment in due course of crossed cheque

Section 129 - Payment of crossed cheque out of due course

Section 130 - Cheque bearing not negotiable

 

 

Section 131 - Non-liability of banker receiving payment of cheque

Section 131A - Application of Chapter to drafts

CHAPTER XV
OF BILLS IN SETS

Section 132 - Set of bills

Section 133 - Holder of first acquired part entitled to all

CHAPTER XVI
OF INTERNATIONAL LAW

Section 134 - Law governing liability of maker, acceptor or indorser of foreign instrument

Section 135 - Law of place of payment governs dishonour

Section 136 - Instrument made, etc., out of India, but in accordance with the law of India

 

 

Section 137 - Presumption as to Foreign Law

CHAPTER XVII
OF PENALTIES IN CASE OF DISHONOUR OF CERTAIN CHEQUES FOR INSUFFICIENCY OF FUNDS IN THE ACCOUNTS

Section 138 - Dishonour of cheque for insufficiency, etc., of funds in the account

Section 139 - Presumption in favour of holder

Section 140 - Defence which may not be allowed in any prosecution under section 138

Section 141 - Offences by companies

Section 142 - Cognizance of offences

Section 143 - Power of Court to try cases summarily

Section 144 - Mode of service of summons

Section 145 - Evidence on affidavit

Section 146 - Bank's slip prima facie evidence of certain facts

Section 147 - Offences to be compoundable

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