The Negotiable Instrument Act deals with only three types of negotiable instruments. Viz., promissory notes, bills of exchange and cheques. However, it does not exclude any other instrument if it is transferable by usage or custom and the transferee acquires a good title. Accordingly, hundi” ‘share warrant,’ dividend warrant’ ‘bearer debentures’, etc, are included in the category of negotiable instruments.

A bill of lading is not a negotiable instrument as it does not satisfy the twin conditions of negotiability. It is transferable like a negotiable instrument but the transferee does not acquire a good title. Hence, it is not regarded as a negotiable instrument but only as a semi-negotiable instrument.

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