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?
The whole of India except the Union territories
The whole of India
The States that adopt it by their own legislation
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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