Negotiable Instruments Act Section 136 — Instrument made, etc., out of India, but in accordance with the law of India

CHAPTER XVI O F I N T E R N A T I O N A L LA W

General

Summary

If a negotiable instrument like a cheque or promissory note is created outside India but follows Indian law, the fact that the underlying agreement is invalid in the country where it was made does not make any later acceptance or endorsement of that instrument invalid, as long as that later acceptance or endorsement happens within India. In simple terms, once the instrument is handled or signed in India, its validity here is judged by Indian law, not by the foreign law where it was first created.

Official Text

If a negotiable instrument is made, drawn, accepted or indorsed 4[outside India], but in accordance with the 5[law of India], the circumstances that any agreement evidenced by such instrument is invalid according to the law of the country wherein it was entered into does not invalidate any subsequent acceptance or indorsement made thereon 6[within India].