Negotiable Instruments Act, 1881 — section 2

2. [Repeal of enactments.] Rep. by the Amending Act, 1891 (XII of 1891). 5[3. Interpretation-clause.— In this Act, unless there is anything repugnant in the subject or context,―

(a)“accommodation party” means a person who has signed a negotiable instrument as a maker, drawer, acceptor or indorser without receiving the value thereof and for the purpose of lending his name to some other person; 1 For Statement of Objects and Reasons, see Gazette of India, 1876, p. 1836 ; for the Reports of the Select Committee, see ibid., 1877, Pt. V, p. 321, 1878, Pt. V, p. 145 ; 1879, Pt. V, p. 75 ; 1881, Pt. V, p. 85 ; for discussions in Council, see ibid., 1876, Supplement, p. 1081 ; and ibid., 1881, Supplement, p. 1409. This Act has been declared to be in force in Balochistan by the British Balochistan Laws Regulation, 1913 (2 of 1913), s. 3. For summary procedure on negotiable instruments, see the Code of Civil Procedure, 1908 (Act 5 of 1908), Sch. I, Order XXXVII. This Act has been extended to

(a)the Leased Areas of Balochistan, see the Leased Areas (Laws) Order, 1950 (G. G. O. 3 of 1950); and applied in the Federated Areas of Balochistan, see Gaz. of India, 1937, Pt. I, p. 1499 ;

(b)the Balochistan States Union, see the Balochistan States Union (Federal Laws) (Extension) Order, 1953 (G. G. O. 4 of 1953), as amended by the Balochistan States Union (Federal Laws) (Extension) (Second Amendment) Order, 1953 (G. G. O. 19 of 1953); and

(c)the State of Bahawalpur, see the Bahawalpur (Extension of Federal Laws) Order, 1953 (G. G. O. 11 of 1953), as amended. The Act has been and shall be deemed to has been brought into force in Gwadur with effect from the 8th September, 1958 by the Gwadur (Applica tion of Central Laws) Ordinance,1960 (37 of 1960), s. 2. The Act, as in force in the North-West Frontier Province immediately before the commencement of N.W.F.P. Regulation No. II of 1974, has been applied to the Provincially Administered Tribal Areas of Chitral, Dir, Kalam, Swat and Malakand Protected Area, by N.W.F.P. Regulation, No. II of 1974, s.3. The Act and the rules, notifications and order made thereunder, as in force in N.W.F.P. before the 15th July, 1975, have been applied to the Districts of Chitral, Dir, Swat and Malakand Protected Area of the N.W.F.P., by Regulation No. III of 1975, s. 2 and Sch. 2 Subs. by the Negotiable Instruments (Amdt.) Act, 1957 (5 of 1958), s.2 (with effect from the 14th October, 1955), for “It extends to [all the Provinces and the Capital of the Federation]”. The words in crotchets were subs. by A. O., 1949, Arts. 3(2) and 4, for “the whole of British India”. 3 Subs. by the Negotiable Instruments (Amdt.) Ordinance, 1962 (49 of 1962), s. 2 ,for certain original words. . 4 S.1A,ins.ibid.,s.3. 5 Subs. ibid., s. 4, for the original section as amended by the Decentralization Act, 1914 (4 of 1914), s. 2 and Sch., Pt. I, A. O., 1937 and the Negotiable Instruments (Amdt.) Act, 1957 (5 of 1958), s. 3.

(b)“banker” means a person transacting the business of accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise and withdrawable by cheque, draft, order or otherwise, and includes any Post Office Savings Bank;

(c)“bearer” means a person who by negotiation comes into possession of a negotiable instrument, which is payable to bearer;

(d)“delivery” means transfer of possession, actual or constructive, from one person to another;

(e)“issue” means the first delivery of a promissory note, bill of exchange or cheque complete in form to a person who takes it as a holder;

(f)“material alteration” in relation to a promissory note, bill of exchange or cheque includes any alteration of the date, the sum payable, the time of payment, the place of payment, and, where any such instrument has been accepted generally, the addition of a place of payment without the acceptor’s assent; and

(g)“notary public” includes any person appointed by the 1[Federal Government] to perform the functions of notary public under this Act and a notary appointed under the Notaries Ordinance, 1961 (XIX of 1961)] CHAPTER II OF NOTES, BILLS AND CHEQUES