58. NEGOTIABLE INSTUMENS ACT, 1881
This Act defines the law relating to promissory Notes, Bills of Exchange and Cheques. The meaning of these is given in section 4, 5 & 6 of this Act. These 3 instruments are base of Banking Industry. The Law describe in details about the parties to notes, bills & Cheques. Their negotiation and matters relating with them. It also deals with compensation in case of dishonour of Promissory notes, Bill of Exchange or cheques.

It also contain provision of penalty in case of dishonour of cheques, which are issued to pay any debt or other liability and which are issued to pay any debt or other liability and which are dishonoured because of insufficiency of funds in the Bank Account.

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