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1.1

The

law

relating

to

negotiable

instruments

is

not

the

law

of

one

country or of one nation; it is the law of the commercial world in general, for, it consists of “certain principles of equity and usages of trade which

general convenience and common regulate the dealings of merchants

sense of justice and mariners in

had established to all the commercial

countries of Europe are,

the civilized world”. Even now the laws at least so far as general principles are

of several countries concerned, similar

in in

many respects. Of solved the various

course, on questions of detail, different countries have problems in different ways, but the essentials are the

same, and this similarity of law is a pre-requisite transactions that are carried on among the different

for the vast countries.1

international

1.2

A cheque is an acknowledged bill of exchange that is readily accepted

in lieu of payment of money and it is negotiable. However, by the fall in moral standards, even these negotiable instruments like cheques issued, started losing their creditability by not being honoured on presentment. It was found that an action in the civil court for collection of the proceeds of a negotiable instrument like a cheque tarried, thus defeating the very purpose

of recognizing a negotiable instrument as was in that context that Chapter XVII Instruments Act.2

a speedy vehicle of commerce. It was inserted in the Negotiable

Bhashyam & Adiga’s The Negotiable Instruments Act, rev. Justice Ranganath Misra, Bharat Law House, New Delhi, 18th edn. (2008), p.1. Ibid. at 734. 1 2

9

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