''Negotiable instrument''
Section 13 of the Negotiable Instruments Act, 1881 deals with ''Negotiable instrument''. A negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer. The Act came into force on 01 Mar 1882.
1[(1) A negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer.
Explanation (i) -- A promissory note, bill of exchange or cheque is payable to order which is expressed to be so payable or which is expressed to be payable to a particular person, and does not contain words prohibiting transfer or indicating an intention that it shall not be transferable.
Explanation (ii) -- A promissory note, bill of exchange or cheque is payble to bearer which is expressed to be so payable or on which the only or last indorsement is an indorsement in blank.
Explanation (iii) -- Where a promissory note, bill of exchange or cheque, either originally or by indorsement, is expressed to be payable to the order of a specified person, and not to him or his order, it is nevertheless payable to him or his order at his option.]
2[(2) A negotiable instrument may be made payable to two or more payees jointly, or it may be made payable in the alternative to one of two, or one or some of serveral payees.]
Section 13, The Negotiable Instruments Act, 1881 (Act 26 of 1881).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Pradeep Kumar vs Post Master General
Court's Decision & Legal Precedent
When a negotiable instrument (including Kisan Vikas Patras) is presented for encashment at a post office, the post office must verify that the person presenting the instrument is the 'holder' as defined under Section 8 of the Negotiable Instruments Act, 1881, by following the prescribed rules and procedures including verification of identity slip and obtaining written application from the actual holder. Payment made to a person in possession of the instrument but not entitled to receive payment in his name is not a valid discharge under Section 78 or Section 82(c) of the NI Act. Such payment constitutes negligence and violates the requirement of 'payment in due course' under Section 10 of the NI Act. The post office is vicariously liable for fraudulent acts of its employees committed during the course of employment, and such liability cannot be avoided by claiming that the employee acted in individual capacity or that the fraud was committed by a third party.
On this section: Defines 'Negotiable instrument' - KVPs are negotiable instruments payable to order or bearer
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… whether of money or in kind at interest; and includes any transaction which the Court finds in substance to amount to such an advance but does not include the advance made on the basis of a negotiable instrument as defined in the Negotiable Instruments Act, 1881 exceeding Rs. 10,000/-." It is not in dispute that Section 13 of the Negotiable Instruments Act, 1881 defines "negotiable instrument" as including a promissory note. What we have to consider now is whether the suit transaction would fall within the scope of the term "loan" as defined in the Tamil Nadu Money Lenders Act, 1957. 10.Section 2(10) of the Tamil Nadu Act 38 of …
Questions about Section 13
What have the courts held on Section 13 of the Negotiable Instruments Act?
Pradeep Kumar vs Post Master General (07 Feb 2022) is the leading judgment on this section among those set out below: Defines 'Negotiable instrument' - KVPs are negotiable instruments payable to order or bearer.
How do I find court cases under Section 13 of the Negotiable Instruments Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: NI Act 13, section 13 NI Act, section 13 of the Negotiable Instruments Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Pradeep Kumar vs Post Master General (07 Feb 2022).
What should I read with Section 13 of the Negotiable Instruments Act, and has it changed?
2 other provisions in this corpus refer back to it.
When did Section 13 of the Negotiable Instruments Act come into force?
Section 13 of the Negotiable Instruments Act, cited as NI Act 13, came into force on 01 Mar 1882, having been enacted on 09 Dec 1881. It is in force as at the date shown on this page.
Other sections of this Act
- 138. Dishonour of cheque for insufficiency, etc., of funds in the account312 words
- 142A. Validation for transfer of pending cases299 words
- 143. Power of Court to try cases summarily297 words
- 143A. Power to direct interim compensation291 words
- 142. Cognizance of offences290 words
- 141. Offences by companies287 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 14 Oct 2026. This page is not a substitute for legal advice.