Hundies
Hundi is a bill of exchange drawn by Indians in an oriental or vernacular language of India. Hundies have been in existence in India from very ancient times and are governed by different usages in different parts of the country. The custom or usage in a certain area may be to allow interest on hundies drawn and payable so many days after sight. By mercantile usage in some places, a drawer who has accepted a hundi orally is held liable on the instrument. A hundi as accepted by the drawer is assignable without any regular form of indorsement. A hundi, though a negotiable instrument, is not necessarily a bill of exchange as defined in this Act.
Types of Hundies
Some distinct types of hundies are discussed below:
Shahjog Hundi: A hundi is payable to respectable holder (a man of financial worth in the bazaar) but it is not a hundi payable to bearer. In some respects, it is similar to a cheque crossed generally which is payable only to or through some banker and not only the person in whose favour it was drawn can demand payment on its strength but also his endorsee, provided that the latter is a respectable holder.
Nam Jog Hundi: It is a hundi which is payable to the party named in the bill or his order, The bill may also be accompanied by a descriptive note about the role of the party in whose favour it is granted.
Dhani Jog Hundi: It is meant to be payable to the Dhani or owner — a holder or bearer-owner.
Jokhmi Hundi: It refers to a hundi which is drawn on or against goods shipped on the vessel mentioned the hundi and implies a certain rick involved in the shipping of goods. They are payable only when the goods arrive safely.
Jawabee Hundi: A hundi which is in the nature of a letter or recommendation to a banker for payment of a particular amount to a particular person.
Zikri Hundi: It is a hundi accepted for honour under what is called a Zikri Chit (or letter of protection) without being protested. It is furnished to the holder by some prior party to the hundi on the hundi being refused acceptance. or when a refusal is likely to occur. It is addressed to some person residing in the town where the hundi is payable. The acceptance is given in writing on Zikri Chit.
Darshni Hundi: It is payable at sight and is negotiable. It may be sold at par or at premium or at discount.
Miadi Hundi: A hundi which is payable after a specified period of time. Loans are usually advanced by bankers on the security of such hundies. It is also usual to deduct interest in advance for the period up to the due date.
