Correct Option (b):
Legal tender money refers to currency that is legally recognized for the settlement of debts and financial obligations. A creditor is legally compelled to accept legal tender in payment of a debt. Refusal to accept legal tender for a debt frees the debtor from the obligation to pay that specific amount, although the debt itself may remain. In India, currency notes issued by the Reserve Bank of India and coins issued by the Government of India are legal tender.
Incorrect Options:
Option (a): This option describes money tendered for court fees, which typically involves court fee stamps or specific payment methods, not the general concept of legal tender money for all financial obligations.
Option (c): Cheques, drafts, and bills of exchange are forms of 'bank money' or negotiable instruments. Their acceptance in settlement of claims is based on mutual agreement between parties, not a legal compulsion. Therefore, they are not considered legal tender.
Option (d): While metallic money (coins) is part of legal tender, this statement is not entirely accurate as a comprehensive definition. Not all metallic money in circulation, especially in specific denominations or beyond certain transactional limits, is universally mandated as legal tender for all transactions. For instance, in India, coins are legal tender only up to a certain value for a single transaction.