In India Promissory note payable to bearer can only be issued by RBI, but while explaining Delivery of NI point mam gave an example like Mr.B gave a promissory note ( payable to Mr.A or bearer) to Mr.A. and in turn Mr.A endorses that instrument with one condition. Now the endorsement becomes complete on DELIVERY and FULFILLMENT of the condition mentioned by Mr.A. My doubt is how Mr. B can issue a promissory note payable to DRAWER OR BEARER?
can you specify where the point is explained?
Example given in video no. 38
Though the definition states payable to bearer, according to provisions of NEGOTIABLE INSTRUMENT ACT 1881 the Sec 31(2) of the RBI Act states "(2) Notwithstanding anything contained in the Negotiable InÂstruments Act, 1881, (26 of 1881) no person in India other than the Bank or, as expressly authorized by this Act, the Central Government shall make or issue any promissory note expressed to be payable to the bearer of the instrument."
Thread Startersurya prakash
So one cannot issue bearer promissory note. Which means example given in that video is wrong?
We will look into it and get back to you. Thank you for bring it to our notice