ankitgokani
August 7th, 2008, 03:31 PM
In India, before 1881, the English common law relating to negotiable instruments was applicable where the parties were Europeans. Their personal laws governed Indian natives. Hundis- bills of exchange drawn by natives in vernacular- were therefore regulated by different usages prevailing in different parts of the country. In 1881, the law relating to negotiable instruments was embodied in the Negotiable Instrument Act. It came into force on March 1st, 1882. It applies and extends to whole of India