Bare Acts

The Negotiable Instruments Act, 1881

An Act to define and amend the law relating to Promissory Notes, Bills of Exchange and Cheques.

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Act Details

Act Number:

Act Year:

1881

Location:

Enactment Date:

12/9/1881

Enforcement Date:

01-03-1882

Ministry:

Ministry of Finance

Department:

Department of Financial Services

Full List of Negotiable Instruments Act Sections

PRELIMINARY

Section 1 to Section 3

Section 1

Short title.

Section 2

[Repealed.].

Section 3

Interpretation-clause.

OF NOTES, BILLS AND CHEQUES

Section 4 to Section 25

Section 4

Section 5

Section 6

Section 7

Section 8

Section 9

Holder in due course''.

Section 10

Payment in due course''.

Section 11

Inland instrument.

Section 12

Foreign instrument.

Section 13

Negotiable instrument''.

Section 14

Negotiation.

Section 15

Indorsement.

Section 16

Indorsement ''in blank'' and ''in full''.

Section 17

Ambiguous instruments.

Section 18

Where amount is stated differently in figures and words.

Section 19

Instruments payable on demand.

Section 20

Inchoate stamped instruments.

Section 21

At sight''.

Section 22

Maturity''.

Section 23

Calculating maturity of bill or note payable so many months after date or sight.

Section 24

Calculating maturity of bill or note payable so many days after date or sight.

Section 25

When day of maturity is a holiday.

PARTIES TO NOTES, BILLS AND CHEQUES

Section 26 to Section 45A

Section 26

Capacity to make, etc., promissory notes, etc.

Section 27

Agency.

Section 28

Liability of agent signing.

Section 29

Liability of legal representative signing.

Section 30

Liability of drawer.

Section 31

Liability of drawee of cheque.

Section 32

Liability of maker of note and acceptor of bill.

Section 33

Only drawee can be acceptor except in need or for honour.

Section 34

Acceptance by several drawees not partners.

Section 35

Liability of indorser.

Section 36

Liability of prior parties to holder in due course.

Section 37

Maker, drawer and acceptor principals.

Section 38

Prior party a principal in respect of each subsequent party.

Section 39

Suretyship.

Section 40

Discharge of indorser's liability.

Section 41

Acceptor bound, although, indorsement forged.

Section 42

Acceptance of bill drawn in fictitious name.

Section 43

Negotiable instrument made, etc., without consideration.

Section 44

Partial absence or failure of money-consideration.

Section 45

Partial failure of consideration not consisting of money.

Section 45A

Holder's right to duplicate of lost bill.

OF NEGOTIATION

Section 46 to Section 60

Section 46

Delivery.

Section 47

Negotiation by delivery.

Section 48

Negotiation by indorsement.

Section 49

Conversion of indorsement in blank into indorsement in full.

Section 50

Effect of indorsement.

Section 51

Who may negotiate.

Section 52

Indorser who excludes his own liability or makes it conditional.

Section 53

Holder deriving title from holder in due course.

Section 54

Instrument indorsed in blank.

Section 55

Conversion of indorsement in blank into indorsement in full.

Section 56

Indorsement for part of sum due.

Section 57

Legal representative cannot by delivery only negotiate instrument indorsed by deceased.

Section 58

Instrument obtained by unlawful means or for unlawful consideration.

Section 59

Instrument acquired after dishonour or when overdue.

Section 60

Instrument negotiable till payment or satisfaction.

OF PRESENTMENT

Section 61 to Section 77

Section 61

Presentment for acceptance.

Section 62

Presentment of promissory note for sight.

Section 63

Drawee's time for deliberation.

Section 64

Presentment for payment.

Section 65

Hours for presentment.

Section 66

Presentment for payment of instrument payable after date or sight.

Section 67

Presentment for payment of promissory note payable by instalments.

Section 68

Presentment for payment of instrument payable at specified place and not elsewhere.

Section 69

Instrument payable at specified place.

Section 70

Presentment where no exclusive place specified.

Section 71

Presentment when maker, etc., has no known place of business or residence.

Section 72

Presentment of cheque to charge drawer.

Section 73

Presentment of cheque to charge any other person.

Section 74

Presentment of instrument payable on demand.

Section 75

Presentment by or to agent, representative of deceased, or assignee of insolvent.

Section 75A

Excuse for delay in presentment for acceptance or payment.

Section 76

When presentment unnecessary.

Section 77

Liability of banker for negligently dealing with bill presented for payment.

OF PAYMENT AND INTEREST

Section 78 to Section 81

Section 78

To whom payment should be made.

Section 79

Interest when rate specified.

Section 80

Interest when no rate specified.

Section 81

Delivery of instrument on payment or indemnity in case of loss.

OF DISCHARGE FROM LIABILITY ON NOTES, BILLS AND CHEQUES

Section 82 to Section 90

Section 82

Discharge from liability.

Section 83

Discharge by allowing drawee more than forty-eight hours to accept.

Section 84

When cheque not duly presented and drawer damaged thereby.

Section 85

Cheque payable to order.

Section 85A

Drafts drawn by one branch of a bank on another payable to order.

Section 86

Parties not consenting discharged by qualified or limited acceptance.

Section 87

Effect of material alteration.

Section 88

Acceptor or indorser bound notwithstanding previous alteration.

Section 89

Payment of instrument on which alteration is not apparent.

Section 90

Extinguishment of rights of action on bill in acceptor's hands.

OF NOTICE OF DISHONOUR

Section 91 to Section 98

Section 91

Dishonour by non-acceptance.

Section 92

Dishonour by non-payment.

Section 93

By and to whom notice should be given.

Section 94

Mode in which notice may be given.

Section 95

Party receiving must transmit notice of dishonour.

Section 96

Agent for presentment.

Section 97

When party to whom notice given is dead.

Section 98

When notice of dishonour is unnecessary.

OF NOTING AND PROTEST

Section 99 to Section 104A

Section 99

Section 100

Section 101

Section 102

Section 103

Protest for non-payment after dishonour by non-acceptance.

Section 104

Protest of foreign bills.

Section 104A

When noting equivalent to protest.

OF REASONABLE TIME

Section 105 to Section 107

Section 105

Reasonable time.

Section 106

Reasonable time of giving notice of dishonour.

Section 107

Reasonable time for transmitting such notice.

OF ACCEPTANCE AND PAYMENT FOR HONOUR AND REFERENCE IN CASE OF NEED

Section 108 to Section 116

Section 108

Acceptance for honour.

Section 109

How acceptance for honour must be made.

Section 110

Acceptance not specifying for whose honour it is made.

Section 111

Liability of acceptor for honour.

Section 112

When acceptor for honour may be charged.

Section 113

Payment for honour.

Section 114

Right of payer for honour.

Section 115

Drawee in case of need.

Section 116

Acceptance and payment without protest.

OF COMPENSATION

Section 117

Rules as to compensation.

SPECIAL RULES OF EVIDENCE

Section 118 to Section 122

Section 118

Presumptions as to negotiable instruments.

Section 119

Presumption on proof of protest.

Section 120

Estoppel against denying original validity of instrument.

Section 121

Estoppel against denying capacity of payee to indorse.

Section 122

Estoppel against denying signature or capacity of prior party.

OF CROSSED CHEQUE

Section 123 to Section 131A

Section 123

Cheque crossed generally.

Section 124

Cheque crossed specially.

Section 125

Crossing after issue.

Section 126

Payment of cheque crossed generally.

Section 127

Payment of cheque crossed specially more than once.

Section 128

Payment in due course of crossed cheque.

Section 129

Payment of crossed cheque out of due course.

Section 130

Cheque bearing ''not negotiable''.

Section 131

Non-liability of banker receiving payment of cheque.

Section 131A

Application of Chapter to drafts.

OF BILLS IN SETS

Section 132 to Section 133

Section 132

Set of bills.

Section 133

Holder of first acquired part entitled to.

OF INTERNATIONAL LAW

Section 134 to Section 137

Section 134

Law governing liability of maker, acceptor or indorser of foreign instrument.

Section 135

Law of place of payment governs dishonour.

Section 136

Instrument made, etc., out of India, but in accordance with the law of India.

Section 137

Presumption as to foreign law.

OF PENALTIES IN CASE OF DISHONOUR OF CERTAIN CHEQUES FOR INSUFFICIENCY OF FUNDS IN THE ACCOUNTS

Section 138 to Section 148

Section 138

Dishonour of cheque for insufficiency, etc., of funds in the account.

Section 139

Presumption in favour of holder.

Section 140

Defence which may not be allowed in any prosecution under section 138.

Section 141

Offences by companies.

Section 142

Cognizance of offences.

Section 142A

Validation for transfer of pending cases.

Section 143

Power of Court to try cases summarily.

Section 143A

Power to direct interim compensation.

Section 144

Mode of service of summons.

Section 145

Evidence on affidavit.

Section 146

Bank's slip prima facie evidence of certain facts.

Section 147

Offences to be compoundable.

Section 148

Power of Appellate Court to order payment pending appeal against conviction.