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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?
  1. Money Bill
  2. Promissory Note
  3. Bill of Exchange
  4. 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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