Monday, November 12, 2007

NI Act_Practical Problem_39

Mr X draws a promissory note to pay Rs. 10,000/- to Mr B or order on which no time or date for payment is specified. Validate the status of the bill of exchange.

As per Section 19 of the NI Act, "A promissory note or bill of exchange, in which no time for payment is specified, and a cheque, are payable on demand." Therefor, in this case, the promissory note is payable to B or order on demand.

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