Q: Discuss Section 20 of negotiable instrument act, 1881 ?
Ans: Section 20 of negotiable instrument act deals with inchoate stamped instruments.
S.20 of the NI Act suggests that if an inchoate instrument is filled up by the possessor, then the amount must be justified by him. It is the different thing that S.20 is not applicable on cheques, simply because cheque is not a stamped instrument. Bills of exchange is an stamped instrument. The amount can be more than the amount covered by the stamp in the stamped instrument.
The justification of the amount means he has to prove the existence of facts behind the liability attached.
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