The law of banking is comprised of many branches of law. The statutory content of the subject is also to be found in many Acts, the Banking Regulation Act and Negotiable Instruments Act being primary among them. The Contract Act also applies because every relationship is founded upon contract. The Chapter of the Contract Act on the pledge is of particular application because a pledge is a method of securing the repayment of loans. The Transfer of Property Act also applies because the provisions as to mortgages are to be found in this Act. These are but some examples.
Apart from this, banking services fall under the Consumer Protection also. No study of this subject can be complete without taking into account consumer cases on banks. A special chapter has been provided in the book on such cases.
The Negotiable Instruments Act was amended in the year 2002. Some new sections were inserted in relation to the liability for dishonour of cheques. A few other amendments became necessary because of the developments in the electronics field, for example, new provisions deal with truncated cheques, electronic image of a cheque, asymmetric crypto system, print out of the electronic image, etc. The highlight of the changes has been provided in the Appendix.
On the judicial front, some of the developments have been as follows: the difference between accepting an instrument as an absolute or conditional payment has been noted. The decisions on criminal liability for dishonour of cheques have made a good contribution to the frontiers of the subject; like the effect of a guarantor's cheque, renewal of cheque, when corporate officers can be held liable, when complaints can be quashed, what sentence and fine would be appropriate. A Kerala decision recognises the courts at the creditor's s place as proper jurisdiction.
An indispensable publication for banks, commercial establishments, Bench and bar and the students of law, banking and commerce.
In this book for the first time the subject of negotiable instruments has been dealt with elaborately covering not only the latest case-law on the subject but also the recent amendments in the law relating to negotiable instruments. For example, this is one of the first commentaries that incorporate the changes introduced by the Amendment Act 55 of 2002. The act has ushered in remarkable changes in its wake. The law relating to dishonour of cheques has been made more stringent and the procedure to be followed by the Courts in such cases has been simplified to enable the speedy disposal of the cases. The limitation period for the issue of notice in such cases has been increased to 30 days from 15 days. The amendment further provides for the issue and acceptance of cheques in electronic form including truncated cheques in electronic image it also provides for digital signatures ans asymmetric crypto system.
The work gives a detailed commentary on the three kinds of negotiable instruments recognised by the Indian Negotiable Instruments Act, 1882, viz., promissory note, bill of exchange and cheque. A comprehensive introduction, discusses the definition of a Negotiable Instrument and the kinds of negotiable instruments, the rights and duties of the parties as well as the legal conditions to complete the negotiable instrument, all explained in an unambiguous language. A large number of cases relating to cheques, including dishonour of cheques, have been discussed.
Another highlight of the book is its simplicity of explanation combined with a style that ensures easy understanding for the reader. The book will surely prove to be indispensable for lawyers, bankers, financial institutions, businessman and students.