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What is the current territorial extent of the Negotiable Instruments Act, 1881, under Section 1?

Question and options

What is the current territorial extent of the Negotiable Instruments Act, 1881, under Section 1?

  1. India excluding Union territories

  2. Only states that separately adopt it

  3. The whole of India

  4. India excluding Jammu and Kashmir

Answer and explanation

Correct answer: C - The whole of India

Section 1 of the Negotiable Instruments Act, 1881 provides that the Act extends to the whole of India, saving local usages relating to hundis and similar instruments. The words excluding the State of Jammu and Kashmir were omitted by the Jammu and Kashmir (Extension of Laws) Act, 1956, and the Act needs no adoption by States or Union territories.

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