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Negotiable Instruments Act, 1881

Contents Sections Chapter I 1 2 3 Chapter II 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Chapter III 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 Particulars Preliminary Short title Repeal of enactments Interpretation clause Notes, Bills And Cheques "Promissory note "Bill of exchange" "Cheque" "Drawer", "drawee" Holder "Holder in due course" "Payment in due course" "Inland instrument" "Foreign instrument" "Negotiable instrument" Negotiation Endorsement Endorsement "in blank" and "in full"-"endorsee" Ambiguous instruments Where amount is stated differently in figures and words Instruments payable on demand Inchoate stamped instruments At sight, On presentment, After sight "Maturity" Calculating maturity of bill or note payable so many months after date or sight Calculating maturity of bill or note payable so many days after date or sight When day of maturity is a holiday Parties To Notes, Bills And Cheques Capacity to make, etc., promissory notes, etc. Agency Liability of agent signing Liability of legal representative signing Liability of drawer Liability of drawee of cheque Liability of maker of note and acceptor of bill Only drawee can be acceptor except in need or for honor Acceptance by several drawees not partners Liability of endorser Liability of prior parties to holder in due course Maker, drawer and acceptor principals Prior party a principal in respect of each subsequent party Suretyship Discharge of endorser's liability Acceptor bound, although endorsement forged Acceptance of bill drawn in fictitious name

43 44 45 45A Chapter IV 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 Chapter V 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 Chapter VI 78 79 80 81 Chapter VII 82 83 84 85 85A

Negotiable instrument made, etc. without consideration Partial absence or failure of money-consideration Partial failure of consideration not consisting of money Holder's right to duplicate of lost bill Negotiation Delivery Negotiation by delivery Negotiation by endorsement Conversion of endorsement in blank into endorsement in full Effect of endorsement Who may negotiate Endorser who excludes his own liability or makes it conditional Holder deriving title from holder in due course Instrument endorsed in blank Conversion of endorsement in blank into endorsement in full Endorsement for part of sum due Legal representative cannot by delivery only negotiate instrument endorsed by deceased Instrument obtained by unlawful means or for unlawful consideration Instrument acquired after dishonor or when overdue Instrument negotiable till payment or satisfaction Presentment Presentment for acceptance Presentment of promissory note for sight Drawee's time for deliberation Presentment for payment Hours for presentment Presentment for payment of instrument payable after date or sight Presentment for payment of promissory note payable by installments Presentment for payment of instrument payable at specified place and not elsewhere Instrument payable at specified place Presentment where no exclusive place specified Presentment when maker, etc., has no known place of business or residence Presentment of cheque to charge drawer Presentment of cheque to charge any other person Presentment of instrument payable at demand Presentment by or to agent, representative of deceased, or assignee of insolvent When presentment unnecessary Liability of banker for negligently dealing with bill presented for payment Payment And Interest To whom payment should be made Interest when rate specified Interest when no rate specified Delivery of instrument on payment or indemnity in case of loss Discharge From Liability On Notes, Bills And Cheques Discharge from liability Discharge by allowing drawee more than forty-eight hours to accept When cheque not duly presented and drawer damaged thereby Cheque payable to order Drafts drawn by one branch of a bank on another payable to order

86 87 88 89 90 Chapter VIII 91 92 93 94 95 96 97 98 Chapter IX 99 100 101 102 103 104 104A Chapter X 105 106 107 Chapter XI 108 109 110 111 112 113 114 115 116 Chapter XII 117 Chapter XIII 118 119 120 121 122 Chapter XIV 123 124 125

Parties not consenting discharged by qualified or limited acceptance Affect of material alteration Acceptor or endorser bound notwithstanding previous alteration Payment of instrument on which alteration is not apparent Extinguishment of rights of action on bill in acceptor's hands Notice Of Dishonour Dishonor by non-acceptance Dishonor by non-payment By and to whom notice should be given Mode in which notice may be given Party receiving must transmit notice of dishonor Agent for presentment When party to whom notice given is dead When, notice of dishonor is unnecessary Noting And Protest Noting Protest Contents of protest Notice of protest Protest for non-payment after dishonor by non-acceptance Protest of foreign bills When noting equivalent to protest Reasonable Time Reasonable time Reasonable time of giving notice of dishonor Reasonable time for transmitting such notice Acceptance And Payment For Honour And Reference In Case Of Need Acceptance for honor How acceptance for honor must be made Acceptance not specifying for whose honor it is made Liability of acceptor for honor When acceptor for honor may be charged Payment for honor Right of payer for honor Drawee in case of need Acceptance and payment without protest Compensation Rules as to compensation Special Rules Of Evidence Presumptions as to negotiable instruments Until the contrary is proved, the following presumption shall be made Presumption on proof of protest Estoppel against denying original validity of instrument Estoppel against denying capacity of payee to endorse Estoppel against denying signature or capacity of prior party Crossed Cheques Cheque crossed generally Cheque crossed specially Crossing after issue

126 127 128 129 130 131 131A Chapter XV 132 133 Chapter XVI 134 135 136 137 Chapter XVII 138 139 140 141 142 Schedule

Payment of cheque crossed generally Payment of cheque crossed specially more than once Payment in due course of crossed cheque Payment of crossed cheque out of due course Cheque bearing not negotiable Non-liability of banker receiving payment of cheque Application of chapter to drafts Bills In Sets Set of bills Holder of first acquired part entitled to all International Law Law governing liability of maker, acceptor or endorser of foreign instrument Law of place of payment governs dishonor Instrument made, etc. out of India, but in accordance with the law of India Presumption as to foreign law Penalties In Case Of Dishonour Of Certain Cheques For Insufficiency Of Funds In The Accounts Dishonor of cheque for insufficiency, etc., of funds in the accounts Supreme Court 3762 Presumption in favor of holder Defense which may not be allowed in any prosecution under section 138 Offences by companies Cognizance of offences Enactment [Repealed]