| Category of Bare Act | Name of the Act | Year of Promulgation |
|---|---|---|
| Criminal Laws | Negotiable Instruments Act | 1881 |
| Act Number | Enactment Date | Chapter Number |
| 26 | 09.12.1881 | 3 |
| Chapter Title | Ministry | Department |
| Parties to Notes, Bills and Cheques | Ministry of Finance | Department of Financial Services |
A negotiable instrument made, drawn, accepted, indorsed, or transferred without consideration, or for a consideration which fails, creates no obligation of payment between the parties to the transaction. But if any such party has transferred the instrument with or without endorsement to a holder for consideration, such holder, and every subsequent holder deriving title from him, may recover the amount due on such instrument from the transferor for consideration or any prior party thereto.