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Sec 134 Negotiable Instruments Act 1881: Law governing liability of maker, acceptor or indorser of foreign instrument

Section 134 (Law governing liability of maker, acceptor or indorser of foreign instrument) under Chapter XVI (Of International Law) of the Negotiable Instruments Act, 1881 —

❝In the absence of a contract to the contrary, the liability of the maker or drawer of a foreign promissory note, bill of exchange or cheque is regulated in all essential matters by the law of the place where he made the instrument, and the respective liabilities of the acceptor and indorser by the law of the place where the instrument is made payable.

Illustration

 A bill of exchange was drawn by A in California, where the rate of interest is 25 per cent., and accepted by B, payable in Washington, where the rate of interest is 6 per cent. The bill is erdorsed in India, and is dishonoured. An action on the bill is brought against B in India. He is liable to pay interest at the rate of 6 per cent. only; but if A is charged as drawer, A is liable to pay interest at the rate of 25 per cent.❞



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Notes:

(1) List of Amending Acts and Adaptation Orders

The Negotiable Instruments Act, 1881 (Act No. 26 of 1881) was amended by:

01. Negotiable Instruments Act, 1885 (Act No. 02 of 1885);
02. Amending Act, 1891 (Act No. 12 of 1891);
03. Negotiable Instruments (Amendment) Act, 1897 (Act No. 06 of 1897);
04. Decentralization Act, 1914 (Act No. 04 of 1914);
05. Negotiable Instruments (Amendment) Act, 1914 (Act No. 05 of 1914);
06. Negotiable Instruments (Amendment) Act, 1919 (Act No. 08 of 1919);
07. Negotiable Instruments (Amendment) Act, 1920 (Act No. 25 of 1920);
08. Negotiable Instruments (Amendment) Act, 1921 (Act No. 12 of 1921);
09. Negotiable Instruments (Amendment) Act, 1922 (Act No. 18 of 1922);
10. Negotiable Instruments (Amendment) Act, 1926 (Act No. 30 of 1926);
11. Negotiable Instruments (Amendment) Act, 1930 (Act No. 25 of 1930);
12. Negotiable Instruments (Amendment) Act, 1934 (Act No. 17 of 1934);
13. Government of India (Adaptation of Indian Laws) Order, 1937;
14. Negotiable Instruments (Amendment) Act, 1947 (Act No. 33 of 1947);
15. Indian Independence (Adaptation of Central Acts and Ordinances) Order, 1948;
16. Adaptation of Laws Order, 1950;
17. Part B States (Laws) Act, 1951 (Act No. 03 of 1951);
18. Negotiable Instruments (Amendment) Act, 1952 (Act No. 53 of 1952);
19. Negotiable Instruments (Amendment) Act, 1955 (Act No. 37 of 1955);
20. Jammu and Kashmir (Extension of Laws) Act, 1956 (Act No. 62 of 1956);
21. Repealing and Amending Act, 1957 (Act No. 36 of 1957);
22. Banking, Public Financial Institutions and Negotiable Instruments Laws (Amendment) Act, 1988 (Act No. 66 of 1988);
23. The Negotiable Instruments (Amendment and Miscellaneous Provisions) Act, 2002 (Act No. 55 of 2002);
24. The Negotiable instruments (Amendment) Act, 2015 (Act No. 26 of 2015);
25. The Negotiable Instruments (Amendment) Act, 2018 (Act No. 20 of 2018).

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