Sharing of capital deficiency by the partners
[This article distinguishes on General rule and Garner v Murray rule, in sharing of deficiency of capital on account of insolvency of the partner(s)] Capital deficiency means that one or more partner has a debit balance in his/their capital account at the point of final cash distribution. The capital deficiency may arise from liquidation losses,…
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What is yield based and price based auction of Government securities
[This article explains the meaning of yield based and price based auction with the illustrations of yield based auction and auction Sale (Re-issue) of Government Securities] The Government securities are issued by way of auctions conducted by the RBI on the electronic platform called the NDS – Auction platform. The banks, Insurance Companies, Mutual Funds,…
Read article What is the difference between a bill of exchange and a Cheque?
The bills of exchange are a kind of negotiable instruments generally arising out of trade transactions. Demand bills, Usance bills, Clean bills, Documentary Bills, Accommodation bills, etc. are the examples of bills of exchange in usage for different types of trade transactions. A cheque is also a kind of bill of exchange. However, cheque has some…
Read article Definition of bill of exchange
Section 5 of the NI Acts 1881 defines a bill of exchange as under “A bill of exchange is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money to, or to the order of, a certain person or the bearer…
Read article Definition of Usance Bills
Section 22 of Negotiable instrument act 1881 provides that “every promissory note, bill of exchange which is not expressed to be payable on demand, at sight or on presentment is at maturity on the third day after the date on which is expressed to be payable”. Thus, in the case of Usance bills, three days…
Definition of a Cheque
A cheque is defined in section 6 of Negotiable Instruments acts 1881 which provides that, “A cheque is a bill of exchange, drawn on a specified banker and expressed to be payable otherwise than on demand”. The electronic image of a truncated cheque and a cheque in the electronic form (e-cheque) are also termed as ‘cheque’ after coming into…
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