Q.Specify the document which comes under the Negotiable Instruments Act:

A negotiable instrument is both freely transferable and capable of giving the holder in due course a defect-free title, so both statements are correct — (c).

A negotiable instrument (such as a promissory note, bill of exchange or cheque) has certain special features. Two key ones are stated in the question: (i) it is freely transferable by delivery or by endorsement and delivery; and (ii) the holder in due course gets a good title free from the defects in the title of previous holders. These are among the defining characteristics of negotiability.

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A share warrant is negotiable by delivery, so the answer is option (d).

A negotiable instrument is freely transferable, and the transferee who takes it in good faith and for value gets a good title. A share warrant is a bearer document issued against fully paid-up shares and is transferable by mere delivery, so it qualifies as a negotiable instrument.

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