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.

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