Laws of Banking and Negotiable Instruments

The law of banking is comprised of many branches of law. The statutory content of the subject is also to be found in many Acts, the Banking Regulation Act and Negotiable Instruments Act being primary among them. The Contract Act also applies because every relationship is founded upon contract. The Chapter of the Contract Act on pledge is of particular application because pledge is a method of securing repayment of loans. The Transfer of Property Act also applies because the provisions as to mortgages are to be found in this Act. These are but some examples. Apart from this, banking services fall under the Consumer Protection also. No study of this subject can be complete without taking into account consumer cases on banks. A special chapter has been provided in the book on such cases. The Negotiable Instruments Act was amended in the year 2002. Some new sections were inserted in relation to the liability for dishonour of cheques. A few other amendments became necessary because of the developments in the electronic field, for example, new provisions deal with truncated cheques, electronic image of a cheque, asymmetric crypto system, print out of electronic image, etc. The highlight of the changes has been provided in the Appendix. On the judicial front, some of the developments have been as follows: the difference between accepting an instrument as an absolute or conditional payment has been noted. The decisions on criminal liability for dishonour of cheques have made a good contribution to the frontiers of the subject; like the effect of a guarantor's cheque, renewal of cheque, when corporate officers can be held liable, when complaints can be quashed, what sentence and fine would be appropriate. A Kerala decision recognises the courts at the creditor's's place as proper jurisdiction. This is an indispensable publication for banks, commercial establishments, Bench and Bar and the students of law, banking and commerce.