What is Negotiable Instrument? Negotiable Instrument is defined defined under Section 13 of Negotiable Instruments Act 1881
(1) A "negotiable instrument" means a promissory
note, bill of exchange or cheque payable either to
order or to bearer.
Explanation 1 : A promissory note, bill of exchange
or cheque is payable to order which is expressed to
be so payable or which is expressed to be payable to
a particular person, and does not contain words
prohibiting transfer or indicating an intention that
it shall not be transferable.
Explanation 2 : A promissory note, bill of exchange
or cheque is payable to bearer which is expressed to
be so payable or on which the only or last
endorsement is an endorsement in blank.
Explanation 3 : Where a promissory note, bill of
exchange or cheque, either originally or by
endorsement, is expressed to be payable to the order
of a specified person, and not to him or his order,
it is nevertheless payable to him or his order at
his option.
(2) A negotiable instrument may be made payable to two or more payees jointly, or it may be made payable in the alternative to one of two, or one or some of several payees
Negotiable Instruments Act 1881
CHAPTER II NOTES, BILLS AND CHEQUES
Section 9 - Holder in Due Course
Section 10 - Payment in due Course
Section 11 - Inland Instrument
Section 12 - Foreign Instrument
Section 13 - Negotiable Instrument
Section 16 - Endorsement in blank and in full endorsee
Section 17 - Ambiguous instruments
Section 18 - Where amount is stated differently in figures and words