An assignment is when the rights, title, and interest in debts due or accruing due to a person are transferred to another person. The debts which are sought to be assigned may be present, future, conditional or contingent charge by way of assignment can be created under actionable claim. Transfer of Life Insurance Policy, National…
Section 130 of Negotiable acts 1881 provides that ‘a person taking a cheque crossed generally or specially bearing in either case the words ‘not negotiable’ shall not have and shall not be capable of giving a better title to the cheque than that which the person from whom he took it had’. According to above…
The section 85(1), 85(2), 128 of negotiable instrument acts provide statutory protection to paying banker for making payments of order cheque, bearer cheque or crossed cheque in that order. Payment of order cheque Section -85(1) of N.I.Acts 1881 provides that “Where a cheque payable to order purports to be endorsed by or on behalf of…
The difference between the rights of ‘Holder’ and ‘Holder in due course’ is that the holder in due course gets a better title than the person from whom he acquired the title as he holds the instrument free from any defect of title of prior parties. For example, a stolen cheque was negotiated by the…
Sec 10 of the Negotiable Instrument Act defines ‘Payment in due course” as ‘payment in accordance with the apparent tenor of the instrument in good faith and without negligence to any person in possession thereof under circumstances which do not afford a reasonable ground for believing that he is not entitled to receive payment of…
Section 9 of N.I. Act, define holder in due course as under. “Holder in due course means any person who for consideration became the possessor of a promissory note, bill of exchange or cheque, if payable to bearer, or the payee or indorsee thereof, if payable to order, before the amount mentioned in it became…
Section 8 of N.I.Act 1881 defines ‘Holder’ as under. “The holder of a promissory note, bill of exchange or cheque means, any person entitled in his own name to the possession thereof and to receive or recover the amount due thereon from the parties thereto. Where the note, bill or cheque is lost or destroyed…
Allonge is a French word which means lengthening. When a piece of paper which has been firmly attached to a negotiable instrument for further endorsements, such piece of paper attached thereto is called allonge. However, a blank slip of paper attached to a negotiable instrument cannot be called allonge unless an endorsement is written on…
The confirmed DA for the months of May-July 2017 is @45.60% on ‘pay’ (which includes allowances eligible for DA) @ the rate of 0.10% per slab. It means a decrease of 13 slabs over the previous (February –April 2017) level of DA for the Bank employees and officers. The DA slabs are calculated based on…
The point in time when one precisely becomes a customer of the bank is extensively debated on and off. The subject of deeming a person as a customer of the bank is important more so to bankers in the following situations. The banker may risk forfeiting immunity provided to him under section 131 of NI…