Rishabh Kumar Ambashta, 2K21LWUN02021, BBA-LLB

Course Reflection Report

Legal Enterprises
Course Reflection Report
(For section C and D)

➢ The Negotiable Instruments Act came on 1st March 1881 and its main purpose was to
assist the mercantile law, also known as the trade law.
Negotiable Instrument is a written and transferable document which can be further
transferred/negotiated at current or future date. And it can be negotiated for unlimited times till
the date of its maturity. Negotiable Instrument includes and excludes the following.

Includes Excludes
Promissory Notes Treasury Bills
Bills of Exchange Money Orders, Hundi
Cheques Currency Notes

Essential features of a Negotiable Instrument:

• Transferability
• Independent Title
• Certainty
• Right to issue

Parties of a Negotiable Instrument

1) Drawer: The one who draws the Negotiable Instrument (Cheque)
2) Drawee: Bank of the drawer
3) Payee: the person to whom the cheque has been issued.

“Ponnuswami Chettiar V P. Vellaimuthu Chettiar (1957)”a landmark case in the history of

Negotiable Instruments.

Bills of Exchange: A written instrument containing an unconditional order, signed by the maker,
directing certain person to pay on demand or fixed time.

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 Rishabh Kumar Ambashta, 2K21LWUN02021, BBA-LLB
Course Reflection Report

Essential characteristics of Bills of Exchange:

1. Must be in writing
2. Must have an order to pay
3. Should be an unconditional order
4. Must be signed by the drawer, drawee and payee.
5. Drawee and payee must be certain
6. Order to pay must also be certain

Bills of Exchange V Promissory Note

Three parties, Drawer, Acceptor and Two parties, Maker and Payee
Payee.
Drawn by the creditor Drawn by the debtor
Order to pay Promise to pay
Acceptance of Drawee is needed Acceptance of Drawee is not needed
Drawer can be the payee Maker cannot be the payee.

Cheque: A cheque is a bill of exchange which is drawn on specified banker and is payable on
demand. (Ashok yashwant Badawe V. Surendra Madhavrao Nighojakar)

Difference between Bill of Exchange and Cheque

Bill of Exchange Cheque
1. Drawn on specific person Drawn on bank
2. Must be accepted before payment Does not require such condition

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 Rishabh Kumar Ambashta, 2K21LWUN02021, BBA-LLB
Course Reflection Report

Types of Bills of Exchange

➢ Inland Bill
➢ Foreign Bill
➢ Time and Demand Bill
➢ Demand Bill
➢ Trade Bill
➢ Accommodation Bill
➢ Ambiguous Instrument
➢ Bank Demand Draft
➢ Maturity

Capacity of parties to a Negotiable Instrument

1. Capacity to contract
2. Trading Company

Holder: 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 dure
thereon from the parties thereto. Where the note, bill or cheque is lost or destroyed, its holder is
the person so entitled at the time of such loss or destruction.

➢ Holder in Due course:

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 indorse
thereof, if payable to order, before the amount mentioned in it became payble, and
without having sufficient cause to believe that any defect existed in the title of the person
from whom he derived his title.

➢ Essentials:
A. Must recive the negotiable instrument as a holder- may be either payee, or possessor
or the indorsee
B. Obtained for consideration
C. Must recive the negotiable instrument before its maturity
D. Must take it in good faith.

➢ Negotiation: When a promissory note, bill of exchange or cheque is transferred to any

person, so as to constitute the person the holder thereof, the instrument is said to be
negotiated.

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 Rishabh Kumar Ambashta, 2K21LWUN02021, BBA-LLB
Course Reflection Report

➢ How an instrument is negotiated?

If the instrument is a bearer one, the rights in it can be transferred by mere delivery from
one person to another subject to the provisions of Sec.58

➢ Indorsement:
When the maker or holder of a negotiable instrument signs the same, otherwise than as
such maker, for the purpose of negotiation, on the back or face thereof or on a slip of
paper annexed thereto, or so signs for the same purpose a stamped paper intended to be
completed as a negotiable instrument, he is said to indorse the same, and is called the
indorser.

➢ Trademark: A symbol, word, or words legally registered or established by use as

representing a company or product.

Trademark can be of two types: Conventional and Unconventional

❖ Who can Apply:

Any person claiming to be the proprietor of a trademark can file a Registration
Application for it to get it registered as its trademark.

❖ Is prior use required:

It is not a prerequisite to get the trademark in use in order to register it.

❖ Process of Registration:
1. Select the mark
2. Search before application
3. File the application
4. Numbering of Application
5. Meeting official objectives
6. Advertising of application
7. Accepting of application
8. Opposition proceedings
9. Issue of registration certificate

❖ Terms of Registration:
1. For 10 years
2. Renewable for another 10 years

❖ Grounds for Cancellation of Trademark:

1. If trademark is registered without any Bona Fide intention.
2. Not using it for 5 years after getting it registered.

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