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In 1881, the Negotiable Instruments Act was implemented to encourage the growth of banking and commercial enterprises. The primary purpose of this legislation was to legalise the system of negotiable instruments. Negotiable Instruments are papers that allow for the legally binding transfer of monetary value. The contract establishes an obligation to pay the agreed-upon sum later or immediately upon request, whichever is relevant.
The law regulating negotiable instruments is business-focused legislation created to simplify trade and commerce by establishing procedures to sanctify instruments of credit that could be considered transformed into money. As a result, the act's objective is to regulate some financial activities. A cheque is a negotiable instrument as described in Section 6 of the Act. Section 138 of the Act addresses cheque dishonour. Check dishonour happens when a bank refuses to pay the amount of a cheque to the payee for various reasons, including inadequate money.
Men's area is a necessary component of a crime in criminal law, yet dishonour of check is a criminal act; thus, there is no need to prove a men's area, and it is not an essential item. The establishment of strict responsibility under this provision would be an effective measure in preventing the drawers' ordinary negligence or change of attitude in the discharge of obligations.
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