CMA Foundation · Fundamentals of Business Laws and Business Communication · Negotiable Instruments Act, 1881
Which of the following is included within the meaning of a cheque under Section 6 of the Negotiable Instruments Act, 1881?
A cheque includes a cheque in electronic form and the electronic image of a truncated cheque. Section 6 expressly extends the definition to these, while instruments not drawn on a banker or not payable on demand, such as time bills or notes, do not qualify.
- AA promissory note payable after sight
- BA cheque in the electronic form and the electronic image of a truncated chequeCorrect
- CA hundi payable only after a fixed date
- DA bill of exchange drawn on a non-banker and payable after 60 days
Explanation
Section 6 expressly states that a cheque includes the electronic image of a truncated cheque and a cheque in the electronic form. The other options are not drawn on a specified banker payable on demand, so they are not cheques.
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