Question
Which section of the Negotiable Instruments Act, 1881
provides that a promissory note, bill of exchange, or cheque is not invalid by reason that it is backdated?Solution
Section 20 of the Negotiable Instruments Act, 1881 provides that a promissory note, bill of exchange, or cheque is not invalid by reason that it is backdated. However, the backdating must not be for the purpose of defrauding any person or making any other illegal transaction.
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