Drafts drawn by one branch of a bank on another payable to order
Section 85A of the Negotiable Instruments Act, 1881 deals with drafts drawn by one branch of a bank on another payable to order. where any draft, that is an order to pay money, drawn by one office of a bank upon another office of the same bank for a sum of money payable to order on demand, purports to be endorsed by or on behalf of the payee, the bank is discharged by payment in due course.] The Act came into force on 01 Mar 1882.
1[85A. Drafts drawn by one branch of a bank on another payable to order.--where any draft, that is an order to pay money, drawn by one office of a bank upon another office of the same bank for a sum of money payable to order on demand, purports to be endorsed by or on behalf of the payee, the bank is discharged by payment in due course.]
Section 85A, 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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Punjab & Sind Bank vs Vinkar Sahakari Bank Ltd.
Court's Decision & Legal Precedent
A Pay Order issued by a bank is a cheque within the meaning of Section 138 of the Negotiable Instruments Act, 1881, and the holder of such Pay Order has the legal standing to file a criminal complaint for dishonour. The fact that the drawer and drawee are the same banking institution does not prevent the instrument from being a cheque when held by a third party. The holder is presumed to be a holder in due course under Section 118(g) unless the contrary is proved, and such presumption cannot be rebutted at the stage of quashing the complaint but only during trial.
On this section: Drafts drawn by one branch of bank on another branch; court cited this to establish that drafts are negotiable instruments
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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… Bank, was a current account opened by the Charotar Bank. The instruments do not contain any description that they are demand drafts. 25. Quite apart from the statutory distinction between a cheque and a demand draft, which would emerge from the comparison of Section 6 and 85A of the Negotiable Instruments Act by virtue of directives of the Reserve Bank of India, the practice and procedures followed by different Banks consistently, and the conventions emerging over a period of time that the trade and business people using banking facilities, a clear distinction between an account payee …
Questions about Section 85A
What have the courts held on Section 85A of the Negotiable Instruments Act?
Punjab & Sind Bank vs Vinkar Sahakari Bank Ltd. (17 Sep 2001) is the leading judgment on this section among those set out below: Drafts drawn by one branch of bank on another branch; court cited this to establish that drafts are negotiable instruments.
How do I find court cases under Section 85A 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 85A, section 85A NI Act, section 85A 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 Punjab & Sind Bank vs Vinkar Sahakari Bank Ltd. (17 Sep 2001).
What should I read with Section 85A of the Negotiable Instruments Act, and has it changed?
1 other provision in this corpus refers back to it.
When did Section 85A of the Negotiable Instruments Act come into force?
Section 85A of the Negotiable Instruments Act, cited as NI Act 85A, 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 15 Oct 2026. This page is not a substitute for legal advice.