Question

Which one of the following is not a negotiable instrument under the Negotiable Instruments Act?

• A. Promissory Note
• B. Bill of Exchange
• C. Cheque
• D. Sale Deed

Hint:

Under the Negotiable Instruments Act, 1881, there are only three primary types of negotiable instruments: Promissory Notes (Section 4), Bills of Exchange (Section 5), and Cheques (Section 6).
Any other commercial deed (like a Sale Deed, Lease Deed, or Power of Attorney) is not a negotiable instrument.

Answer 1

The Correct Option is D

Step 1: Recall the Negotiable Instruments Act, 1881.
The Negotiable Instruments Act, 1881 is the primary legislation governing negotiable instruments in India and defines which documents qualify as such.
Step 2: List the recognized negotiable instruments.
Under Section 13 of the Act, only three instruments are recognized: (a) Promissory Note, (b) Bill of Exchange, and (c) Cheque. All three are transferable financial documents used in trade and commerce.
Step 3: Identify the odd one out.
A Sale Deed transfers ownership of immovable property and is governed by the Transfer of Property Act, 1882, not the Negotiable Instruments Act.
\[ \boxed{\text{Sale Deed}} \]