NI ACT- CONT.

section-11 Inland Instrument
A Promissory Note, Bill of Exchange or Cheque drawn or made in, and made payable in or drawn upon any person resident in (India) shall be deemed to be an Inland Instrument.

section-13 Negotiable Instrument
A Negotiable Instrument means Promissory Note, Bill of Exchange or Cheque payable either to order or to the bearer.

section-14 Negotiation
When a Promissory note, bill of exchange or cheque is transferred to any person so as to constitute the person the holder thereof, the instrument is said to be negotiated.

section-15 Endorsement
When the maker or the holder of the negotiable instrument signs the same, otherwise than as such maker, for the purpose of the negotiation, on the back or the face thereof or on a slip of paper annexed thereto or so signs for the same purpose a stamped paper intended to be completed as a negotiable instrument, he is said to indorse the same is called the Endorser.

section-16 Endorsement in Blank and Full
If the endorser signs his/her name only, the endorsement is said to be “in blank”, and if he adds direction to pay, the amount mentioned in the instrument, or to the order of a specified person the endorsement is said to be in full and the person so specified is called the Endorsee of the instrument.
section-20 Inchoate stamped instrument
Where one person signs and delivers to another person a paper stamped in accordance with the aw relating to negotiable instrument then in force in India and either wholly blank or having written thereon an incomplete negotiable instrument, he thereby gives prima facie authority to the holder thereof to make or complete, as the case may be , upon it a negotiable instrument, for any amount specified therein and not exceeding the amount covered by the stamp. The person so signing shall be liable upon such instrument, in the capacity in which he signed the same, to any holder in due course for such amount.