Negotiable Instruments Act, 1881 · Chapter XVI: O F I N T E R N A T I O N A L La W
Section 136: Instrument made, etc., out of India, but in accordance with the law of India
In plain words
If an instrument is made, drawn, accepted or indorsed outside India but in accordance with Indian law, the fact that the underlying agreement is invalid in that country does not invalidate a later acceptance or indorsement in India.
A simplified explanation, prepared with AI assistance from the official text below and checked automatically against it for numbers and cross-references. The official text is the law and prevails over this summary. Not legal advice.
Official text
If a negotiable instrument is made, drawn, accepted or indorsed [outside India], but in accordance with the [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 [within India].
Source: India Code (indiacode.gov.in), the consolidated text published by the Legislative Department, Government of India. Text as updated on India Code on 15 October 2026. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.