Discharge from liability
Section 82 of the Negotiable Instruments Act, 1881 deals with discharge from liability. The maker, acceptor or indorser respectively of a negotiable instrument is discharged from liability thereon-- (a) by cancellation.-- to a holder thereof who cancels such acceptor's or indorser's name with intent to discharge him, and to all parties claiming under such holder; The Act came into force on 01 Mar 1882.
The maker, acceptor or indorser respectively of a negotiable instrument is discharged from liability thereon--
(a) by cancellation.-- to a holder thereof who cancels such acceptor's or indorser's name with intent to discharge him, and to all parties claiming under such holder;
(b) by release.-- to a holder thereof who otherwise discharges such maker, acceptor or indorser, and to all parties deriving title under such holder after notice of such discharge;
(c) by payment.-- to all parties thereto, if the instrument is payable to bearer, or has been indorsed in blank, and such maker, acceptor or indorser makes payment in due course of the amount due thereon.
Section 82, 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.
Referred to by 1
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: Discharge by payment - maker is discharged when payment is made in due course to a person in possession of a bearer instrument or one indorsed in blank. The Post Office failed to make payment in due course
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Ratan Decor Rep.by its Managing Partner Vinay Kumar Sethia vs Nitraa Furnitures Pvt Ltd., Rep.by its Managing Director Arumugam
Court's Decision & Legal Precedent
In a summary suit under Order 37 CPC, if the defendant fails to deny the transaction, the issuance of cheques, and the underlying order, and provides no evidence to rebut the statutory presumption of a legally enforceable debt under the NI Act, no leave to defend can be granted.
On this section: Applied by the court to justify 18% interest rate in absence of written agreement.
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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… The learned counsel further submitted that regarding those deposition of the complainant there is no cross examination from the side of the defence and therefore the said evidence has to be taken as admitted by the accused. It is submitted by the learned counsel that in view of Section 82 of the Negotiable Instruments Act the accused has not discharged his liability either of the way elaborated in Section 82 of the Act. Thus according to the learned counsel, the finding arrived on by the court below is liable to be reversed. The learned counsel further submitted that mere denial by the accused …
Questions about Section 82
What have the courts held on Section 82 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: Discharge by payment - maker is discharged when payment is made in due course to a person in possession of a bearer instrument or one indorsed in blank. The Post Office failed to make payment in due course. Another 1 judgment on this section is set out below, 1 of them from the Supreme Court. They run from 2017 to 2022.
How do I find court cases under Section 82 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 82, section 82 NI Act, section 82 of the Negotiable Instruments Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 2 reported judgments on this section are set out on this page, beginning with Pradeep Kumar vs Post Master General (07 Feb 2022).
What should I read with Section 82 of the Negotiable Instruments Act, and has it changed?
1 other provision in this corpus refers back to it.
When did Section 82 of the Negotiable Instruments Act come into force?
Section 82 of the Negotiable Instruments Act, cited as NI Act 82, 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.