Banking · Negotiable Instruments Act
Consider the following statements regarding Negotiable Instruments and traditional Hundis under Indian Law: Statement I: A 'Shahjog Hundi' is payable only to a 'Shah' (a respectable and creditworthy person) and is not a bearer instrument in the strict sense. Statement II: If a bill of exchange is materially altered without consent, it is rendered void against all non-consenting parties. Statement III: An 'Inland Bill' must always be drawn in India and must also be made payable in India, with no exceptions. Statement IV: The Negotiable Instruments Act, 1881 does not apply to instruments written in oriental languages unless a clear local usage or intention exists. Statement V: A 'Namjog Hundi' is payable to the person whose name is specified in the instrument. Which of the following combinations of statements is correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1All statements are correct except III✓
- 2Only IV and V
- 3Only II and III
- 4Only I and II
Correct answer
All statements are correct except III
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