NI Act_Practicle Problems_27

A bill is payable to X or order, X endorses the bill in blank. The bill is there after lost and comes into the hands of Y. Discuss the legal position in each of the following alternative cases:

a. If Y receives the payment of the bill.

b. If Y passes the bill by simple delivery to Z as a gift.

c. If Y passes the bill after maturity by simple delivery to Z who takes the bill in good faith for valuable consideration.If Y passes the bill before maturity by simple delivery to Z who takes the bill in good faith for valuable consideration.

NI Act_Practicle Problems_26

State whether the following alterations are material or not:

a. The holder of a bill inserts the words 'or order'.

b. A bill was dated 1989 instead of 1999 & subsequently the agent of the drawer corrected the mistake.

c. A cheque payable to bearer was converted into a cheque payable to order.

d. Crossing a cheque.

NI Act_Practicle Problems_25

State whether the following alterations are material or not:

a. A bill for Rs.1,000 is changed into a bill for Rs.2,000.

b. A bill is accepted payable at Dena Bank is changed to a bill accepted pay­able at Canara Bank.

c. A bill payable to P is changed into a bill payable to P and Q.

d. A bill was endorsed in blank and handed over to Y, who endorsed as 'Pay to Z or order’.

NI Act_Practicle Problems_24

A bill payable at Delhi is changed to bill payable at Bombay. Is it material alteration ?

NI Act_Practicle Problems_23

A bill payable 3 months after date is changed to a bill payable 3 months after sight. Is it material alteration ?

NI Act_Practicle Problems_22

A bill dated 1st April 1999 is changed to a bill dated 1st May 1999. Is it material alteration ?