Which among the following is NOT a Negotiable Instrument under the Negotiable Instruments Act?
Question and options
Which among the following is NOT a Negotiable Instrument under the Negotiable Instruments Act?
- Money Bill
- Promissory Note
- Bill of Exchange
- Cheque
Answer and explanation
Correct answer: A - Money Bill
Section 13 of the Negotiable Instruments Act, 1881 defines a negotiable instrument as a promissory note, bill of exchange or cheque payable either to order or to bearer, so those three are the instruments the Act recognises. A Money Bill is a legislative measure dealing with taxation and public money, defined in Article 110 of the Constitution; it is not an instrument for the payment of money by one person to another and carries no right of negotiation.
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