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A Negotiable Instrument made or drawn outside India and made payable in India is governed, as to its validity, by:
AEither the lex loci contractus or Indian law depending on the issue
BIndian law uniformly
CThe law of the place of making/drawing
DThe law of place of payment alone
Answer & Solution
Correct answer: A. Either the lex loci contractus or Indian law depending on the issue
1. Section 134 of the NI Act — questions of validity are governed by the law of the place where the instrument was made/drawn; questions of presentment, dishonour, etc. by the law of the place of performance.
2. Renders the conflict-of-laws analysis explicit.
3. Hence (C).
_Source: ICAI BoS CA Inter Paper 2 — Negotiable Instruments Act 1881_