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

Question and options

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

  1. The whole of India except the Union territories

  2. The whole of India

  3. The States that adopt it by their own legislation

  4. The whole of India except Jammu and Kashmir

Answer and explanation

Correct answer: B - The whole of India

Section 1 of the Negotiable Instruments Act, 1881 extends the Act to the whole of India, while saving local usage relating to instruments in an oriental language, such as hundis. The earlier exclusion of Jammu and Kashmir was omitted by amendment long ago, and as a central law on a Union List subject the Act needs no adoption by a State.

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