TAILIEUCHUNG - THE NEGOTIABLE INSTRUMENTS ACT, 1881

A common feature of federations is that different levels of government share a common tax base. An implication is that tax policies established by one locality will affect taxes collected by other localities as well as by the center. Such tax externalities can lead to inefficient choices of tax rates by localities for several reasons. First, if there is mobility of producers between jurisdictions, there will be horizontal tax externalities. An increase in one province’s tax rate, given the tax rates in other provinces, will lead to an outflow of the tax base to other regions | THE NEGOTIABLE INSTRUMENTS ACT 1881 ACT NO. 26 OF 1881 9th December 1881. An Act to define and amend the law relating to Promissory Notes Bills of Exchange and Cheques. Preamble. WHEREAS it is expedient to define and amend the law relating to promissory notes bills of exchange and cheques It is hereby enacted as follows CHAP PRELIMINARY PRELIMINARY 1. Short title. title. This Act may be called the Negotiable Instruments Act 1881. Local extent. Saving of usages relating to hundis etc. It extends to the whole of India but nothing herein contained affects the Indian Paper Currency Act 1871 3 of 1871 . section 21 or .affects any local usage relating to any instrument in an oriental language Provided that such usages may be excluded by any words in the body of the instrument which indicate an intention that the legal relations of the parties thereto shall be governed by this Act and it shall come into force on the first day of March 1882. 2. Commencement. . Repeal of enactments. Rep. by the Amending Act 1891 12 of 1891 s. 2 and Sch. 1. 3. Interpretation-clause. . In this Act- 3 4 banker includes office savings bank any person acting as a banker and any post 5 1 The words except the State of Jammu and Kashmir which were subs. by Act 3 of 1951 for except Part B States omitted by Act 62 of 1956 s. 2 and Sch. 2 Rep. by the Indian Paper Currency Act 1923 10 of 1923 . See now the Reserve Bank of India Act 1934 2 of 1934 s. 31. 3 Definition of the word India which was subs. by Act 3 of 1951 for the definition of the word State omitted by Act 62 of 1956 s. 2 and Sch. 4 Subs. by Act 37 of 1955 s. 2 for the definition of the word banker . 5 Omitted by Act 53 of 1952 s. 16 . 14-2-1956 . Extended to Laccadive Minicoy and Amindivi Islands . 1-10-1967 vide Reg. 8 of 1965 s. 3 Sch. Extended to Goa Daman and Diu with modifications by Reg. 12 of 1962 s. 3 Sch. Extended to and brought into force in Dadra and Nagar Haveli . .

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