Instrument made, etc., out of India, but in accordance with the law of India
Full Text
Instrument made, etc., out of India, but in accordance with the law of India.—If a negotiable instrument is made, drawn, accepted or indorsed outside India, but in accordance with the law of India, the circumstances that any agreement evidenced by such instrument is invalid according to the law of the country wherein it was entered into does not invalidate any subsequent acceptance or indorsement made thereon within India.
Plain English Summary
Validates subsequent acceptances or indorsements made in India on a foreign instrument that conforms to Indian law, even if the underlying foreign transaction was invalid under local foreign law.
Key Legal Elements
- Instrument made, drawn, accepted, or endorsed outside India
- Form of instrument conforms to Indian law
- Invalidity of agreement under local foreign law does not infect Indian transactions
- Subsequent acceptance or endorsement within India remains fully valid
Practical Note
Insulates Indian holders and commercial transactions from obscure foreign local prohibitions (like foreign stamp duty non-compliance or local licensing technicalities). As long as the instrument meets Indian formal requisites, transactions executed upon it within India are upheld as legally valid.
हिंदी पाठ
भारत से बाहर, किंतु भारत की विधि के अनुसार बनाई गई लिखत।—यदि कोई परक्राम्य लिखत भारत से बाहर, किंतु भारत की विधि के अनुसार बनाई, लिखी, प्रतिग्रहीत या पृष्ठांकित की गई है, तो यह परिस्थिति कि ऐसी लिखत द्वारा साक्ष्यित कोई करार उस देश की विधि के अनुसार अविधिमान्य है जिसमें वह किया गया था, उस पर भारत के भीतर किए गए किसी भी पश्चात्वर्ती प्रतिग्रहण या पृष्ठांकन को अविधिमान्य नहीं बनाती है।