The Negotiable Instruments Act, 1881

Preamble

THE NEGOTIABLE INSTRUMENTS ACT, 1881

ACT NO. 26 OF 1881¹

[9th December, 1881.] An Act to define and amend the law relating to Promissory Notes, Bills of Exchange and Cheques.

Preamble.--WHEREAS it is expedient to define and amend the law relating to promissory notes, bills of exchange and cheques; It is hereby enacted as follows:--

What this Act covers

Sections

Type to filter. 155 sections.

1. 1Short title
2. 2[Repealed.]
3. 3Interpretation-clause
4. 4''Promissory note''
5. 5''Bill of exchange''
6. 6''Cheque''
7. 7''Drawer.''
8. 8''Holder''
9. 9''Holder in due course''
10. 10''Payment in due course''
11. 11Inland instrument
12. 12Foreign instrument
13. 13''Negotiable instrument''
14. 14Negotiation
15. 15Indorsement
16. 16Indorsement ''in blank'' and ''in full''
17. 17Ambiguous instruments
18. 18Where amount is stated differently in figures and words
19. 19Instruments payable on demand
20. 20Inchoate stamped instruments
21. 21''At sight''
22. 22''Maturity''
23. 23Calculating maturity of bill or note payable so many months after date or sight
24. 24Calculating maturity of bill or note payable so many days after date or sight
25. 25When day of maturity is a holiday
26. 26Capacity to make, etc., promissory notes, etc
27. 27Agency
28. 28Liability of agent signing
29. 29Liability of legal representative signing
30. 30Liability of drawer
31. 31Liability of drawee of cheque
32. 32Liability of maker of note and acceptor of bill
33. 33Only drawee can be acceptor except in need or for honour
34. 34Acceptance by several drawees not partners
35. 35Liability of indorser
36. 36Liability of prior parties to holder in due course
37. 37Maker, drawer and acceptor principals
38. 38Prior party a principal in respect of each subsequent party
39. 39Suretyship
40. 40Discharge of indorser's liability
41. 41Acceptor bound, although, indorsement forged
42. 42Acceptance of bill drawn in fictitious name
43. 43Negotiable instrument made, etc., without consideration
44. 44Partial absence or failure of money-consideration
45. 45Partial failure of consideration not consisting of money
46. 45AHolder's right to duplicate of lost bill
47. 46Delivery
48. 47Negotiation by delivery
49. 48Negotiation by indorsement
50. 49Conversion of indorsement in blank into indorsement in full
51. 50Effect of indorsement
52. 51Who may negotiate
53. 52Indorser who excludes his own liability or makes it conditional
54. 53Holder deriving title from holder in due course
55. 54Instrument indorsed in blank
56. 55Conversion of indorsement in blank into indorsement in full
57. 56Indorsement for part of sum due
58. 57Legal representative cannot by delivery only negotiate instrument indorsed by deceased
59. 58Instrument obtained by unlawful means or for unlawful consideration
60. 59Instrument acquired after dishonour or when overdue
61. 60Instrument negotiable till payment or satisfaction
62. 61Presentment for acceptance
63. 62Presentment of promissory note for sight
64. 63Drawee's time for deliberation
65. 64Presentment for payment
66. 65Hours for presentment
67. 66Presentment for payment of instrument payable after date or sight
68. 67Presentment for payment of promissory note payable by instalments
69. 68Presentment for payment of instrument payable at specified place and not elsewhere
70. 69Instrument payable at specified place
71. 70Presentment where no exclusive place specified
72. 71Presentment when maker, etc., has no known place of business or residence
73. 72Presentment of cheque to charge drawer
74. 73Presentment of cheque to charge any other person
75. 74Presentment of instrument payable on demand
76. 75Presentment by or to agent, representative of deceased, or assignee of insolvent
77. 75AExcuse for delay in presentment for acceptance or payment
78. 76When presentment unnecessary
79. 77Liability of banker for negligently dealing with bill presented for payment
80. 78To whom payment should be made
81. 79Interest when rate specified
82. 80Interest when no rate specified
83. 81Delivery of instrument on payment or indemnity in case of loss
84. 82Discharge from liability
85. 83Discharge by allowing drawee more than forty-eight hours to accept
86. 84When cheque not duly presented and drawer damaged thereby
87. 85Cheque payable to order
88. 85ADrafts drawn by one branch of a bank on another payable to order
89. 86Parties not consenting discharged by qualified or limited acceptance
90. 87Effect of material alteration
91. 88Acceptor or indorser bound notwithstanding previous alteration
92. 89Payment of instrument on which alteration is not apparent
93. 90Extinguishment of rights of action on bill in acceptor's hands
94. 91Dishonour by non-acceptance
95. 92Dishonour by non-payment
96. 93By and to whom notice should be given
97. 94Mode in which notice may be given
98. 95Party receiving must transmit notice of dishonour
99. 96Agent for presentment
100. 97When party to whom notice given is dead
101. 98When notice of dishonour is unnecessary
102. 99Noting
103. 100Protest
104. 101Contents of protest
105. 102Notice of protest
106. 103Protest for non-payment after dishonour by non-acceptance
107. 104Protest of foreign bills
108. 104AWhen noting equivalent to protest
109. 105Reasonable time
110. 106Reasonable time of giving notice of dishonour
111. 107Reasonable time for transmitting such notice
112. 108Acceptance for honour
113. 109How acceptance for honour must be made
114. 110Acceptance not specifying for whose honour it is made
115. 111Liability of acceptor for honour
116. 112When acceptor for honour may be charged
117. 113Payment for honour
118. 114Right of payer for honour
119. 115Drawee in case of need
120. 116Acceptance and payment without protest
121. 117Rules as to compensation
122. 118Presumptions as to negotiable instruments
123. 119Presumption on proof of protest
124. 120Estoppel against denying original validity of instrument
125. 121Estoppel against denying capacity of payee to indorse
126. 122Estoppel against denying signature or capacity of prior party
127. 123Cheque crossed generally
128. 124Cheque crossed specially
129. 125Crossing after issue
130. 126Payment of cheque crossed generally
131. 127Payment of cheque crossed specially more than once
132. 128Payment in due course of crossed cheque
133. 129Payment of crossed cheque out of due course
134. 130Cheque bearing ''not negotiable''
135. 131Non-liability of banker receiving payment of cheque
136. 131AApplication of Chapter to drafts
137. 132Set of bills
138. 133Holder of first acquired part entitled to
139. 134Law governing liability of maker, acceptor or indorser of foreign instrument
140. 135Law of place of payment governs dishonour
141. 136Instrument made, etc., out of India, but in accordance with the law of India
142. 137Presumption as to foreign law
143. 138Dishonour of cheque for insufficiency, etc., of funds in the account
144. 139Presumption in favour of holder
145. 140Defence which may not be allowed in any prosecution under section 138
146. 141Offences by companies
147. 142Cognizance of offences
148. 142AValidation for transfer of pending cases
149. 143Power of Court to try cases summarily
150. 143APower to direct interim compensation
151. 144Mode of service of summons
152. 145Evidence on affidavit
153. 146Bank's slip prima facie evidence of certain facts
154. 147Offences to be compoundable
155. 148Power of Appellate Court to order payment pending appeal against conviction

Schedules

This Act has 1 schedule. A schedule is published as a document of its own; the text is reproduced on its page where it has been read, and the document is mirrored here either way.

Related Acts

Ordinances

India Code records no parent Act for an ordinance, so these are tied to this Act by their own titles and their dates rather than by anything the source states. An ordinance is made when Parliament is not sitting and lapses six weeks into the next session unless it is enacted.

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