1. Assignment 2
Case Study :
Shivgiri Associates, a partnership Firm with 5 partners entered into a business
arrangement with Metso Corporation for supply of oil drilling machines. Mr. C.
Ravishankar and Mr. P.Reddy,two of the partners were given the authority by the
Firm to enter into business arrangement, and conduct day to day affairs with Metso
Corporation regarding the aforesaid transaction. As part payment of the Firm’s
liability, Mr. C.Ravishankar and Mr. P.Reddy issued a cheque dated 01st September
2010 in favour of Metso Corp. for an amount of Rs 35 Lacs. The said cheque was
presented by Metso Corp to its banker, Citibank on 01 st November 2010. The cheque
was returned by bank on 03rd November 2010 as unpaid on account of “Funds
Insufficient”.
Questions:
1. Under what provisions of Negotiable Instrument Act is the remedy available
with Metso Corp against the Firm . Who all can be made liable by Metso Corp.
for the offence under the case study.
2. Till which date can the demand notice be sent by Metso Corp to the Firm.
3. From which date, Metso Corp gets a right to institute a case under Negotiable
Instrument Act.
4. What is the maximum period available for Metso to institute a complaint.
5. What is the essential condition required for a case under study not to fall
within the purview of Negotiable Instrument Act.
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