DailyTamilUpdates

HOLDER AND HOLDER IN DUE COURSE WHAT DO YOU MEANT BY HOLDER? A person who is legally entitled to the possession of the negotiable instrument in his own name to receive the amount there of is called a “Holder”. He is the original payee. In case the bill is payable to the bearer, the person in possession of the negotiable instrument is called the holder. DEFINE HOLDER. According to section 8 the “holder of a promissory note, bill of exchange, or cheque means any person entitle in his own name to the possession there of and to receive or recover the amount due there on from the parties there to”. EXPLAIN THE RIGHTS OF A HOLDER. The holder of the negotiable instrument point out certain right viz v   To cross open cheques either generally or specially v   To convert a blank endorsement into a full endorsement v   To negotiable the instrument to a third party v   To present it to the market or drawee v   To use in his own name and v   To o...

ENDORSEMENT  MEANING:- WHAT DO YOU MEANT BY ENDORSEMENT? Endorsement means the signature instructions etc, placed on the reverse of a negotiable instrument for the purpose of assigning the interest there in to another. If the available space on the back side has been completely covered than a piece of paper is pasted to the instrument and subsequent endorsement are made on that paper. The paper that is pasted is called as ‘allorge’. DEFINE ENDORSEMENT. Endorsement is define under section 15 of the negotiable instruments act as “when the maker or holder of negotiable instrument signs the some otherwise then as such maker, for the purpose of negotiation, on the back or face there of or on a ship of paper annexed there to or so sings for the same purpose a stamped paper indented to completed as a negotiable instrument, he is said to have endorsed the same and is called endorser.   ESSENTIALS WHAT ARE THE PRE-REQUISITES/ESSENTIALS OF ENDORSEMENT? v At the time of ...

WHAT DO YOU MEANT BY PAYING BANKER? A paying banker is one who is a drawee of a cheque. He takes the responsibility of making payment on a cheque to the true owner. Any wrong payment will make the paying banker liable to the true owner of cheque and also to the drawer of the cheque. DEFINE PAYING BANKER. According to section 31 of the Negotiable instrument act paying banker in defined as “the drawee of a cheque having sufficient funds of the drawer in his hands, properly applicable to the payment of such cheque must pay the cheque when duly required to do so and in default of such payment must compensate the drawer for any loss or damage caused by such default. Duties of a Paying Banker: Honor Customer's Cheques:                                                                            ...