for example: TATA AIG

  for example: Indian Contract Act

  for example: Ratan Tata

  for example: Negotiable Instruments Act

Section 3   [ View Judgements ]

Amendment of section 17


In section 17 of the principal Act,-



(a) in sub-clause (a) clause (2), for the words " maturing within ninety days from the date of such purchase or re-discount, exclusive of days of grace" the following words shall be substituted namely-



"maturing,-



(i) in the case of bills exchange and promissory notes arising out of any such transactions relating to the export of goods from India, within one hundred and eighty days, and from the date of such purchase or re-discount ,exclusive of days of grace;";



(ii) in any other case, within ninety days,



from the date of such purchase or re-discount exclusive of days of grace"



(b) in clause (3) , for clause (b), the following sub-clause shall be substituted namely-



"(b) the purchase, sale and re-discount of bills of exchange (including treasury bills) drawn in or on any place in any country outside India which is a member of the International Monetary Fund and maturing,-



(i) in the case of bills of exchange arising out of any bona fide transaction relating to the export of goods from India, within one hundred and eighty days, and



(ii) in any other case, within ninety days,



from the date of such purchase or re-discount:



Provided that no such purchase , sale re-discount shall be made in India except with a schedule bank or a State co-operative bank"



(c) after clause (3), the following clause shall be inserted namely:-



"(3A) the making to any schedule bank or State co-operative bank, of loans and advances against promissory notes of such bank, repayable on demand or on the expiry of fixed periods not exceeding one hundred and eighty days;



Provided that the borrowing bank furnishes a declaration in writing to the effect that-



(i) it holds bills exchange arising out of any transactions relating to the export of goods from India, of a value not less than the amount of such loans or advances,-



(a) drawn in India and on any place in any country outside India which is a member of the International Monetary Fund or in any other country notified in this behalf by the Bank in the Gazette of India , and



(b) maturing not later than one hundred and eighty; days from the date of the loan or advances and



(ii) it will, so long as any part of such loans and advances remains unpaid continue to hold such bills of exchange of a value not less than the amount of such loans or advances outstanding for the time being"



(d) to clause (4), the following proviso shall be added, namely-



"Provided that loans and advances made against the security of bills of exchange and promissory notes arising out of any transaction relating to the export of goods from India shall be repayable on demand or on the expiry of fixed periods not exceeding one hundred and eighty days."

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