Negotiable Instrument Act - CiteHR
Industrial Relations And Labour Laws
Legal Counsel
+2 Others

Prime Sponsor - - Payroll Software with GPS Enabled Attendance, Travel, Performance Management, HRMS. Explore Features
Dear All,
I would like to know how Negotiable Instrument Act, 1881 is related to declaration of Holidays. I understand that this Act deals with Promissory Notes, Bill of Exchange etc., Since I am new to this portal and a junior I request you the seniors to explain me in detail.
Cite.Co is a repository of information created by your industry peers and experienced seniors sharing their experience and insights.
Join Us and help by adding your inputs. Contributions From Other Members Follow Below...
Sec 25 of that Act speaks of that:
25. When day of maturity is a holdiay.When the day on which a promissory note or bill of exchange is at maturity is a public holiday, the instrument shall be deemed to be due on the next preceding business day. 17 Explanation.-The expression " public holiday " includes Sundays: 1** * and any other day declared by the 2[Central Government], by notification in the Official Gazette, to be a public holiday
which is precisely the reason why the declaration has to be made eiher by the Central or State Govt.
With Regards

E-mail :

The Negotiable Instruments Act, 1881, primarily deals with Promissory Notes, Bills of Exchange and Cheques. The Act by itself has nothing to do with holidays or declaration of holidays but it is to be done by official announcement by the government.. As Rajan Associates put in, as per section 25 of the Act, if the due date of maturity of any negotiable instrument falls on a holiday the same has to be extended to the next working day. Whereas some financial institutions (which deal with such negotiable instruments like Banks) work on sundays it becomes essential to declare well in advance which are the holidays on which the financial institutions will remain closed (and accordingly the due date of instruments will be extended).Therefore, declaration of holidays has to be looked in conjunction with section 25 of the NI Act. Hence the declaration of holidays is made by the appropreate government in excercise of power conferred by the explanation to section 25 of the Negotiable Instruments Act. In fact, holidays declared under the NI Act is meant for financial institutions and not for factories and other establishments.


so it means there is no need to give any public holiday which declared by government for factories which registered under factories act 1948
For factories and other establishments the state's Industrial Establishments (National and Festival Holidays) Act will be applicable. As such, there will be three mandatory national holidays such as Jan 26th, August 15th and October 2nd. (in some state May 1st is also a National holiday) and some 9 or 10 festival holidays which the respective establishment can decide.
sir/mam, The fasttrack call taxi comes under the shopsand establishment act i know that but , it is comes under the Negotiable instructment act plz explain me
Explanation is already there that since the taxi service is not dealing in financial services, it will not fall under negotiable Instruments Act. Madhu.T.K
Prime Sponsor - "Interactive Anywhere Learning". Executive courses from top reputed institutes like IIM, XLRI, MICA. View Courses
This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2019 Cite.Co™