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CS Executive · Jurisprudence, Interpretation and General Laws · Law relating to Negotiable Instruments

A dispute arises over a cheque drawn in a foreign country, and neither party proves what that country's law on cheques provides. How will the Indian court proceed?

The court presumes that the foreign country's law on cheques is the same as Indian law. The presumption holds until someone proves the contrary, and here neither party has done so.

  1. AIt will dismiss the case as outside its jurisdiction
  2. BIt will presume the foreign law regarding cheques is the same as Indian law, unless the contrary is provedCorrect
  3. CIt will presume the foreign law is more favourable to the drawer
  4. DIt will apply the law of the payee's residence

Explanation

The Act presumes that a foreign country's law on promissory notes, bills of exchange and cheques is the same as Indian law until the contrary is proved. Since neither party proved otherwise, the court applies the Indian-law presumption.

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