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IEA | 10 | null | 150 | Procedure of Court in case of question being asked without reasonable grounds | If the Court is of opinion that any such question was asked without reasonable grounds, it may, if it was asked by any barrister, pleader, vakil or attorney, report the circumstances of the case to the High Court or other authority to which such barrister, pleader, vakil or attorney is the subject in the exercise of his profession. |
IEA | 10 | null | 151 | Indecent and scandalous questions | The Court may forbid any questions or inquiries which it regards as indecent or scandalous, although such questions or inquiries may have some bearing on the questions before the Court, unless they relate to facts in issue, or to matters necessary to be known in order to determine whether or not the facts in issue existed. |
IEA | 10 | null | 152 | Questions intended to insult or annoy | The Court shall forbid any question which appears to it to be intended to insult or annoy, or which, though proper in itself, appears to the Court needlessly offensive in form. |
IEA | 10 | null | 153 | Exclusion of evidence to contradict answers to questions testing veracity | When a witness has been asked and has answered any question which is relevant to the inquiry only in so far as it tends to shake his credit by injuring his character, no evidence shall be given to contradict him; but, if he answers falsely, he may afterwards be charged with giving false evidence. |
IEA | 10 | null | 154 | Question by party to his own witness | The Court may, in its discretion, permit the person who calls a witness to put any question to him which might be put in cross-examination by the adverse party
Nothing in this section shall dis entitle the person so permitted under subsection (1) to rely on any part of the evidence of such witness. |
IEA | 10 | null | 155 | Impeaching credit of witness | The credit of a witness may be impeached in the following ways by the adverse party, or with the consent of the Court, by the party who calls him—
By the evidence of persons who testify that they, from their knowledge of the witness believe him to be unworthy of credit;
By proof that the witness has been bribed, or has accepted the offer of a bribe, or has received any other corrupt inducement to give his evidence;
By proof of former statements inconsistent with any part of his evidence which is liable to be contradicted; |
IEA | 10 | null | 156 | Question tending to corroborate evidence of relevant fact, admissible | When a witness whom it is intended to corroborate gives evidence of any relevant fact, he may be questioned as to any other circumstances which he observed at or near to the time or place at which such relevant fact occurred, if the Court is of opinion that such circumstances, if proved, would corroborate testimony of the witness as to the relevant fact which he testifies. |
IEA | 10 | null | 157 | Former statements of witness may be proved to corroborate later testimony as to same fact | In order to corroborate the testimony of a witness, any former statement made by such witness relating to the same fact at or about the lime when the fact took place, or before any authority legally competent to investigate the fact, may be proved. |
IEA | 10 | null | 158 | What matters may be proved in connection with proved statement relevant under section 32 or 33 | Whenever any statement, relevant under section 32 or 33, is proved, all matters may be proved either in order to contradict or to corroborate it, or in order to impeach or confirm the credit of the person by whom it was made, which might have been proved if that person had been called as a witness and had denied upon cross-examination of the truth the matter suggested. |
IEA | 10 | null | 159 | Refreshing memory | A witness may, while under examination, refresh his memory by referring to any writing made by himself at the time of the transaction concerning which he is questioned, or so soon afterwards that the Court considers it likely that the transaction was at that time fresh in his memory.
The witness may also refer to any such writing made by any other person, and read by the witness within the time aforesaid, if when he read it he knew it to be correct.
When witness may use copy of document to refresh memory— Whenever a witness may refresh his memory by reference to any document, he may, with the permission of the Court, refer to a copy of such document;
Provided the Court be satisfied that there is sufficient reason for the non-production of the original.
An expert may refresh his memory by reference to professional treatises. |
IEA | 10 | null | 160 | Testimony to facts stated in document mentioned in section 159 | A witness may also testify to facts mentioned in any such document as is mentioned in section 159, although he has no specific recollection of the facts themselves, if he is sure that the facts were correctly recorded in the document. |
IEA | 10 | null | 161 | Right of adverse party as to writing used to refresh memory | Any writing referred to under the provisions of the two last preceding sections must be produced and shown to the adverse party if he requires it; such party may, if he pleases, cross-examine the witness thereupon. |
IEA | 10 | null | 162 | Production of documents | A witness summoned to produce a document shall, if it is in his possession or power, bring it to Court, notwithstanding any objection which there may be to its production or to its admissibility. The validity of any such objection shall be decided on by the Court.
The Court, if it sees, fit, may inspect the document, unless it refers to matters of state, or take other evidence to enable it to determine on its admissibility.
Translation of documents: If for such a purpose it is necessary to cause any document to be translated, the Court may, if it thinks fit, direct the translator to keep the contents secret, unless the document is to be given in evidence; and, if the interpreter disobeys such direction, he shall be held to have committed an offence under section 166 of the Indian Penal Code (45 of 1860). |
IEA | 10 | null | 163 | Giving, as evidence, of document called for and produced on notice | When a party calls for a document which he has given the other party notice to produce, and such document is produced and inspected by the party calling for its production, he is bound to give it as evidence if the party producing it requires him to do so. |
IEA | 10 | null | 164 | Using, as evidence, of document production of which was refused on notice | When a party refuses to produce a document which he has had notice to produce, he cannot afterwards use the document as evidence without the consent of the other party or the order of the Court. |
IEA | 10 | null | 165 | Judge's power to put questions or order production | The Judge may, in order to discover or to obtain proper proof of relevant facts, ask any question he pleases, in any form, at any time, of any witness, or of the parties about any fact relevant or irrelevant; and may order the production of any document or thing; and neither the parties nor their agents shall be entitled to make any objection to any such question or order, nor, without the leave of the Court, to cross-examine any witness upon any answer given in reply to any such question;
Provided that the Judgment must be based upon facts declared by this Act to be relevant, and duly proved;
Provided also that this section shall not authorize any Judge to compel any witness to answer any question or to produce any document which such witness would be entitled to refuse to answer or produce under sections 121 to 131, both inclusive, if the questions were asked or the documents were called for by the adverse party; nor shall the Judge ask any question which it would be improper for any other person to ask under section 148 or 149; nor shall he dispense with primary evidence of any document, except in the cases herein-before excepted. |
IEA | 10 | null | 166 | Power of jury or assessors to put questions | In cases tried by jury or with assessors, the jury or assessors may put any question to the witnesses, through or by leave of the Judge, which the Judge himself might put and which he considers proper. |
IEA | 11 | null | 167 | No new trial for improper admission or rejection of evidence | The improper admission or rejection of evidence shall not be ground of itself for a new trial or reversal of any decision in any case, if it shall appear to the Court before which such objection is raised that, independently of the evidence objected to and admitted, there was sufficient evidence to justify the decision, or that, if the rejected evidence had been received it ought not to have varied the decision. |
NIA | 1 | null | 1 | Short title, extent and Commencement | This Act may be called the Negotiable Instruments Act, 1881.
Local extent. Saving of usages relating to hundis, etc.
It extends to the whole of India but nothing herein contained affects the ‘Indian Paper Currency Act, 1871, (3 of 1871) section 21, or affects any local usage relating to any instrument in an oriental language;
Provided that such usages may be excluded by any words in the body of the instrument which indicate an intention that the legal relations of the parties thereto shall be governed by this Act and it shall come into force on the first day of March, 1882. |
NIA | 1 | null | 2 | Commencement | [Repeal of enactments.] |
NIA | 1 | null | 3 | Interpretation-clause | In this Act – “banker” includes any person acting as a banker and any post office savings bank; |
NIA | 2 | null | 4 | Promissory note | A “promissory note” is an instrument in writing (not being a bank-note or a currency-note) containing an unconditional undertaking, signed by the maker, to pay a certain sum of money only to, or to the order of, a certain person, or to the bearer of the instrument. |
NIA | 2 | null | 5 | Bill of exchange | A “bill of exchange” is an instrument in writing, containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument.
A promise or order to pay is not “conditional”, within the meaning of this section and section 4, by reason of the time for payment of the amount or any instalment thereof being expressed to be on, the lapse of a certain period after the occurrence of a specified event which, according to the ordinary expectation of mankind, is certain to happen, although the time of its happening may be uncertain.
The sum payable may be “certain”, within the meaning of this section and section 4, although it includes future interest or is payable at an indicated rate of exchange, or is according to the course of exchange, and although the instrument provides that, on default of payment of an instalment, the balance unpaid shall become due.
The person to whom it is clear that the direction is given or that payment is to be made may be a “certain I person”, within the meaning of this section and section 4, although he is mis-named or designated by description only. |
NIA | 2 | null | 6 | Cheque | A “cheque” is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand and it includes the electronic image of a truncated cheque and a cheque in the electronic form.
Explanations
For the purposes of this section, the expressions—
“a cheque in the electronic form” means a cheque drawn in electronic form by using any computer resource and signed in a secure system with digital signature (with or without biometrics signature) and asymmetric crypto system or with electronic signature, as the case may be;
“a truncated cheque” means a cheque which is truncated during the course of a clearing cycle, either by the clearing house or by the bank whether paying or receiving payment, immediately on generation of an electronic image for transmission, substituting the further physical movement of the cheque in writing.
For the purposes of this section, the expression “clearing house” means the clearing house managed by the Reserve Bank of India or a clearing house recognised as such by the Reserve Bank of India.
For the purposes of this section, the expressions “asymmetric crypto system”, “computer resource”, “digital signature”, “electronic form” and “electronic signature” shall have the same meanings respectively assigned to them in the Information Technology Act, 2000. |
NIA | 2 | null | 7 | Drawer, Drawee | The maker of a bill of exchange or cheque is called the “drawer”; the person thereby directed to pay is called the “drawee”.
Drawee in case of need. When in the bill or in any endorsement thereon the name of any person is given in addition to the drawee to be resorted to in case of need, such person is called a “drawee in case of need “.
Acceptor. After the drawee of a bill has signed his assent upon the bill, or, if there are more parts thereof than one, upon one of such parts, and delivered the same, or given notice of such signing to the holder or to some person on his behalf, he is called the “acceptor”.
Acceptor for honour. When a bill of exchange has been noted or protested for non-acceptance or for better security, and any person accepts it supra-protest for honour of the drawer or of any one of the endorsers, such person is called an “acceptor for honour”.
Payee. The person named in the instrument, to whom or to whose order the money is by the instrument directed to be paid, is called the “payee”. |
NIA | 2 | null | 8 | Holder | The “holder” of a promissory note, bill of exchange or cheque means any person entitled in his own name to the possession thereof and to receive or recover the amount due thereon from the parties thereto.
Where the note, bill or cheque is lost or destroyed, its holder is the person so entitled at the time of such loss or destruction. |
NIA | 2 | null | 9 | Holder in due course | Holder in due course, means any person who for consideration became the possessor of a promissory note, bill of exchange or cheque if payable to bearer, or the payee or indorsee thereof, if payable to order, before the amount mentioned in it became payable, and without having sufficient cause to believe that any defect existed in the title of the person from whom he derived his title. |
NIA | 2 | null | 10 | Payment in due course | Payment in due course, means payment in accordance with the apparent tenor of the instrument in good faith and without negligence to any person in possession thereof under circumstances which do not afford a reasonable ground for believing that he is not entitled to receive payment of the amount therein mentioned. |
NIA | 2 | null | 11 | Inland instrument | A promissory note, bill of exchange or cheque drawn or made in India, and made payable in, or drawn upon any person resident in, India shall be deemed to be an inland instrument. |
NIA | 2 | null | 12 | Foreign instrument | Any such instrument not so drawn, made or made payable shall be deemed to be a foreign instrument. |
NIA | 2 | null | 13 | Negotiable instrument | A “negotiable instrument” means a promissory note, bill of exchange or cheque payable either to order or to bearer.
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 several payees. |
NIA | 2 | null | 14 | Negotiation | When a promissory note, bill of exchange or cheque is transferred to any person, so as to constitute that person the holder thereof, the instrument is said to be negotiated. |
NIA | 2 | null | 15 | Indorsement | When the maker or holder of a negotiable instrument signs the same, otherwise than as such maker, for the purpose of negotiation, on the back or face thereof or on a slip of paper annexed thereto, or so signs for the same purpose a stamped paper intended to be completed as a negotiable instrument, he is said to indorse the same, and is called the “indorser”. |
NIA | 2 | null | 16 | Indorsement in "blank" and "in full | If the indorser signs his name only, the indorsement is said to be “in blank”, and if he adds a direction to pay the amount mentioned in the instrument to, or to the order of, a specified person, the indorsement is said to be “in full”; and the person so specified is called the “indorsee” of the instrument.
Indorsee. The provisions of this Act relating to a payee shall apply with the necessary modifications to an indorsee. |
NIA | 2 | null | 17 | Ambiguous instruments | Where an instrument may be construed either as a promissory note or bill of exchange, the holder may at his election treat it as either, and the instrument shall be thenceforward treated accordingly. |
NIA | 2 | null | 18 | Where amount is stated differently in figures and words | If the amount undertaken or ordered to be paid is stated differently in figures and in words, the amount stated in words shall be the amount undertaken or ordered to be paid. |
NIA | 2 | null | 19 | Instruments payable on demand | A promissory note or bill of exchange, in which no time for payment is specified, and a cheque, are payable on demand. |
NIA | 2 | null | 20 | Inchoate stamped instruments | Where one person signs and delivers to another a paper stamped in accordance with the law relating to negotiable instruments then in force in India, and either wholly blank or having written thereon an incomplete negotiable instrument, he thereby gives prima facie authority to the holder thereof to make or complete, as the case may be, upon it a negotiable instrument, for any amount specified therein and not exceeding the amount covered by the stamp. The person so signing shall be liable upon such instrument, in the capacity in which he signed the same, to any holder in due course for such amount:
Provided that no person other than a holder in due course shall recover from the person delivering the instrument any thing in excess of the amount intended by him to be paid thereunder. |
NIA | 2 | null | 21 | At sight | “On presentment”. In a promissory note or bill of exchange the expressions “at sight” and “on presentment” mean on demand.
The expression “after sight” means, in a promissory note, after presentment for sight, and, in a bill of exchange, after acceptance, or noting for non-acceptance, or protest for non-acceptance. |
NIA | 2 | null | 22 | Maturity | The maturity of a promissory note or bill of exchange is the date at which it falls due.
Days of grace. Every promissory note or bill of exchange which is not expressed to be payable on demand, at sight or on presentment is at maturity on the third day after the day on which it is expressed to be payable. |
NIA | 2 | null | 23 | Calculating maturity of bill or note payable so many months after date or sight | In calculating the date at which a promissory note or bill of exchange, made payable a stated number of months after date or after sight, or after a certain event, is at maturity, the period stated shall be held to terminate on the day of the month which corresponds with the day on which the instrument is dated, or presented for acceptance or sight, or noted for non-acceptance, or protested for non-acceptance, or the event happens, or, where the instrument is a bill of exchange made payable a stated number of months after sight and has been accepted for honour, with the day on which it was so accepted. If the month in which the period would terminate has no corresponding day, the period shall be held to terminate on the last day of such month. |
NIA | 2 | null | 24 | Calculating maturity of bill or note payable so many days after date or sight | In calculating the date at which a promissory note or bill of exchange made payable a certain number of days after date or after sight or after a certain event is at maturity, the day of the date, or of presentment for acceptance or sight, or of protest for non-acceptance, or on which the event happens, shall be excluded. |
NIA | 2 | null | 25 | When day of maturity is a holdiay | When the day on which a promissory note or bill of exchange is at maturity is a public holiday, the instrument shall be deemed to be due on the next preceding business day. |
NIA | 3 | null | 26 | Capacity to make, etc., promissory notes, etc. | Every person capable of contracting, according to the law to which he is subject, may bind himself and be bound by the making, drawing, acceptance, indorsement, delivery and negotiation of a promissory note, bill of exchange or cheque.
Minor. A minor may draw, indorse, deliver and negotiate such instrument so as to bind all parties except himself.
Nothing herein contained shall be deemed to empower a corporation to make, indorse or accept such instruments except in cases in which, under the law for the time being in force, they are so empowered. |
NIA | 3 | null | 27 | Agency | Every person capable of binding himself or of being bound, as mentioned in section 26, may so bind himself or be bound by a duly authorized agent acting in his name.
A general authority to transact business and to receive and discharge debts does not confer upon an agent the power of accepting or indorsing bills of exchange so as to bind his principal.
An authority to draw bills of exchange does not of itself import an authority to indorse. |
NIA | 3 | null | 28 | Liability of agent signing | An agent who signs his name to a promissory note, bill of exchange or cheque without indicating thereon that he signs as agent, or that he does not intend thereby to incur personal responsibility, is liable personally on the instrument, except to those who induced him to sign upon the belief that the principal only would be held liable. |
NIA | 3 | null | 29 | Liability of legal representative signing | A legal representative of a deceased person who signs his name to a promissory note., bill of exchange or cheque is liable personally thereon unless he expressly limits his liability to the extent of the assets received by him as such. |
NIA | 3 | null | 30 | Liability of drawer | The drawer of a bill of exchange or cheque is bound, in case of dishonour by the drawee or acceptor thereof, to compensate tile holder, provided due notice of dishonour has been given to, or received by, the drawer as hereinafter provided. |
NIA | 3 | null | 31 | Liability of drawee of cheque | The drawee of a cheque having sufficient funds of the drawer in his hands properly applicable to the payment of such cheque must pay the cheque when duly required so to do, and, in default of such payment, must compensate the drawer for any loss or damage caused by such default. |
NIA | 3 | null | 32 | Liability of maker of note and acceptor of bill | In the absence of a contract to the contrary, the maker of a promissory note and the acceptor before maturity of a bill of exchange are bound to pay the amount thereof at maturity according to the apparent tenor of the note or acceptance respectively, and the acceptor of a bill of exchange at or after maturity is bound to pay the amount thereof to the holder on demand.
In default of such payment as aforesaid, such maker or acceptor is bound to compensate any party to the note or bill for any loss or damage sustained by him and caused by such default. |
NIA | 3 | null | 33 | Only drawee can be acceptor except in need or for honour | No person except the drawee of a bill of exchange, or all or some of several drawees, or a person named therein as a drawee in case of need, or an acceptor for honour, can bind himself by an acceptance. |
NIA | 3 | null | 34 | Acceptance by several drawees not partners | Where there are several drawees of a bill of exchange who are not partners, each of them can accept it for himself, but none of them can accept it for another without his authority. |
NIA | 3 | null | 35 | Liability of indorser | In the absence of a contract to the contrary, whoever indorses and delivers a negotiable instrument before maturity without, in such indorsement, expressly excluding or making conditional his own liability, is bound thereby to every subsequent holder, in case of dishonour by the drawee, acceptor or maker, to compensate such holder for any loss or damage caused to him by such dishonour, provided due notice of dishonour has been given to, or received by, such indorser as hereinafter provided.
Every indorser after dishonour is liable as upon an instrument payable on demand. |
NIA | 3 | null | 36 | Liability of prior parties to holder in due course | Every prior party to a negotiable instrument is liable thereon to a holder in due course until the instrument is duly satisfied. |
NIA | 3 | null | 37 | Maker, drawer and acceptor principals | The maker of a promissory note or cheque, the drawer of a bill of exchange until acceptance, and the acceptor are, in the absence of a contract to the contrary, respectively liable thereon as principal debtors, and the other parties thereto are liable thereon as sureties for the maker, drawer or acceptor, as the case may be. |
NIA | 3 | null | 38 | Prior party a principal in respect of each subsequent party | As between the parties so liable as sureties, each prior party is, in the absence of a contract to the contrary, also liable thereon as a principal debtor in respect of each subsequent party. |
NIA | 3 | null | 39 | Suretyship | When the holder of an accepted bill of exchange enters into any contract with the acceptor which, under section 134 or 135 of the Indian Contract Act, 1872 (9 of 1872), would discharge the other parties.
The holder may expressly reserve his right to charge the other parties, and in such case they are not discharged. |
NIA | 3 | null | 40 | Discharge of indorser's liability | Where the holder of a negotiable instrument, without the consent of the indorser, destroys or impairs the indorser’s remedy against a prior party, the indorser is discharged from liability to the holder to the same extent as if the instrument had been paid at maturity. |
NIA | 3 | null | 41 | Acceptor bound, although, indorsement forged | An acceptor of a bill of exchange already indorsed is not relieved from liability by reason that such indorsement is forged, if he knew or had reason to believe the indorsement to be forged when he accepted the bill. |
NIA | 3 | null | 42 | Acceptance of bill drawn in fictitious name | An acceptor of a bill of exchange drawn in a fictitious name and payable to the drawer’s order is not, by reason that such name is fictitious, relieved from liability to any holder in due course claiming under an indorsement by the same hand as the drawer’s signature, and purporting to be made by the drawer. |
NIA | 3 | null | 43 | Negotiable instrument made, etc., without consideration | A negotiable instrument made, drawn, accepted, indorsed or transferred without consideration, or for a consideration which fails, creates no obligation of payment between the parties to the transaction. But if any such party has transferred the instrument with or without indorsement to a holder for consideration, such holder, and every subsequent holder deriving title from him, may recover the amount due on such instrument from the transferor for consideration or any prior party thereto. |
NIA | 3 | null | 44 | Partial absence or failure of money consideration | When the consideration for which a person signed a promissory note, bill of exchange or cheque consisted of money, and was originally absent in part or has subsequently failed in part, the sum which a holder standing in immediate relation with such signer is entitled to receive from him is proportionally reduced. |
NIA | 3 | null | 45 | Partial failure of consideration not consisting of money | Where a part of the consideration for which a person signed a promissory note, bill of exchange or cheque, though not consisting of money, is ascertainable in money without collateral enquiry, and there has been a failure of that part, the sum which a holder standing in immediate relation with such signer is entitled to receive from him is proportionally reduced. |
NIA | 3 | null | 45A | Holder's right to duplicate of lost bill | Where a bill of exchange has been lost before it is over-due, the person who was the holder of it may apply to the drawer to give him another bill of the same tenor, giving security to the drawer, if required, to indemnify him against all persons whatever in case the bill alleged to have been lost shall be found again.
If the drawer on request as aforesaid refuses to give such duplicate bill, he may be compelled to do so. |
NIA | 4 | null | 46 | Delivery | The making, acceptance or indorsement of a promissory note, bill of exchange or cheque is completed by delivery, actual or constructive.
As between parties standing in immediate relation, delivery to be effectual must be made by the party making, accepting or indorsing the instrument, or by a person authorized by him in that behalf.
As between such parties and any holder of the instrument other than a holder in due course, it may be shown that the instrument was delivered conditionally or for a special purpose only, and not for the purpose of transferring absolutely the property therein.
A promissory note, bill of exchange or cheque payable to bearer is negotiable by the delivery thereof.
A promissory note, bill of exchange or cheque payable to order is negotiable by the holder by indorsement and delivery thereof. |
NIA | 4 | null | 47 | Negotiations by delivery | Subject to the provisions of section 58, a promissory note, bill of exchange or cheque payable to
bearer is negotiable by delivery thereof. |
NIA | 4 | null | 48 | Negotiation by indorsement | Subject to the provisions of section 58, a promissory note, bill of exchange or cheque payable to
order, is negotiable by the holder by indorsement and delivery thereof. |
NIA | 4 | null | 49 | Conversion of indorsement in blank into indorsement in full | The holder of a negotiable instrument indorsed in blank may, without signing his own name, by writing above the indorser’s signature a direction to pay to any other person as indorsee, convert the indorsement in blank into an indorsement in full; and the holder does not thereby incur the responsibility of an indorser. |
NIA | 4 | null | 50 | Effect of indorsement | The indorsement of a negotiable instrument followed by delivery transfers to the indorsee the property therein with the right of further negotiation; but the indorsement may, by express words, restrict or exclude such right, or may merely constitute the indorsee an agent to indorse the instrument, or to reeive its contents for the indorser, or for some other specified person. |
NIA | 4 | null | 51 | Who may negotiate | Every sole maker, drawer, payees or indorsee, or all of several joint makers, drawers, payees or indorsees, of a negotiable instrument may, if the negotiability of such instrument has not been restricted or excluded as mentioned in section 50, indorse and negotiate the same. |
NIA | 4 | null | 52 | Indorser who excluds his own liability or makes it conditional | The indorser of a negotiable instrument may, by express words in the indorsement, exclude his own liability thereon, or make such liability or the right of the indorsee to receive the amount due thereon depend upon the happening of a specified event, although such event may never happen.
Where an indorser so excludes his liability and afterwards becomes the holder of the instrument, all intermediate indorsers are liable to him. |
NIA | 4 | null | 53 | Holder deriving title from holder in due course | A holder of a negotiable instrument who derives title from a holder in due course has the rights thereon of that holder in due course. |
NIA | 4 | null | 54 | Instrument indorsed in blank | Subject to the provisions hereinafter contained as to crossed cheques, a negotiable instrument indorsed in blank is payable to the bearer thereof even although originally payable to order. |
NIA | 4 | null | 55 | Conversion of indorsement in blank into indorsement in full | If a negotiable instrument, after having been indorsed in blank, is indorsed in full, the amount of it cannot be claimed from the indorser in full, except by the person to whom it has been indorsed in full, or by one who derives title through such person. |
NIA | 4 | null | 56 | Indorsement for part of sum due | No writing on a negotiable instrument is valid for the purpose of negotiation if such writing purports to transfer only a part of the amount appearing to be due on the instrument; but where such amount has been partly paid, a note to that effect may be indorsed on the instrument, which may then be negotiated for the balance. |
NIA | 4 | null | 57 | Legal representative cannot by delivery only negotiate instrument indorsed by deceased | The legal representative of a deceased person cannot negotiate by delivery only a promissory note, bill of exchange or cheque payable to order and indorsed by the deceased but not delivered. |
NIA | 4 | null | 58 | Instrument obtained by unlawful means or for unlawful consideration | When a negotiable instrument has been lost, or has been obtained from any maker, acceptor or holder thereof by means of an offence or fraud, or for an unlawful consideration, no possessor or indorsee who claims through the person who found or so obtained the instrument is entitled to receive the amount due thereon from such maker, acceptor or holder, or from any party prior to such holder, unless such possessor or indorsee is, or some person through whom he claims was, a holder thereof in due course. |
NIA | 4 | null | 59 | Instrument acquired after dishonour or when overdue | The holder of a negotiable instrument, who has acquired it after dishonour, whether by non-acceptance or non-payment, with notice thereof, or after maturity, has only, as against the other parties, the rights thereon of his transferor:
Accommodation note or bill. Provided that any person who, in good faith and for consideration, becomes the holder, after maturity, of a promissory note or bill of exchange made, drawn or accepted without consideration, for the purpose of enabling some party thereto to raise money thereon, may recover the amount of the note or bill from any prior party. |
NIA | 4 | null | 60 | Instrument negotiable till payment or satisfaction | A negotiable instrument may be negotiated (except by the maker, drawee or acceptor after maturity) until payment or satisfaction thereof by the maker, drawee or acceptor at or after maturity, but not after such payment or satisfaction. |
NIA | 5 | null | 61 | Presentment for acceptance | A bill of exchange payable after sight must, if no time or place is specified therein for presentment, be presented to the drawee thereof for acceptance, if he can, after reasonable search, be found, by a person entitled to demand acceptance, within a reasonable time after it is drawn, and in business hours on a business day. In default of such presentment, no party thereto is liable thereon to the person making such default.
If the drawee cannot, after reasonable search, be found, the bill is dishonoured.
If the bill is directed to the drawee at a particular place, it must be presented at that place; and if at the due date for presentment he cannot, after reasonable search, be found there, the bill is dishonoured.
Where authorized by agreement or usage, a presentment through the post office by means of a registered letter is sufficient. |
NIA | 5 | null | 62 | Presentment of promissory note for sight | A promissory note, payable at a certain period after sight, must be presented to the maker thereof for sight (if he can after reasonable search be found) by a person entitled to demand payment, within a reasonable time after it is made and in business hours on a business day. In default of such presentment, no party thereto is liable thereon to the person making such default. |
NIA | 5 | null | 63 | Drawee's time for deliberation | The holder must, if so required by the drawee of a bill of exchange presented to him for acceptance, allow the drawee forty-eight hours (exclusive of public holidays) to consider whether he will accept it. |
NIA | 5 | null | 64 | Presentment for payment | Promissory notes, bills of exchange and cheques must be presented for payment to the maker, acceptor or drawee thereof respectively, by or on behalf of the holder as hereinafter provided. In default of such presentment, the other parties thereto are not liable thereon to such holder.
Where authorized by agreement or usage, a presentment through the post office by means of a registered letter is sufficient.
Notwithstanding anything contained in section 6, where an electronic image of a truncated cheque is presented for payment, the drawee bank is entitled to demand any further information regarding the truncated cheque from the bank holding the truncated cheque in case of any reasonable suspicion about the genuineness of the apparent tenor of instrument, and if the suspicion is that of any fraud, forgery, tampering or destruction of the instrument, it is entitled to further demand the presentment of the truncated cheque itself for verification:
Provided that the truncated cheque so demanded by the drawee bank shall be retained by it, if the payment is made accordingly. |
NIA | 5 | null | 65 | Hours for presentment | Presentment for payment must be made during the usual hours of business, and, if at a banker’s, within
banking hours. |
NIA | 5 | null | 66 | Presentment for payment of instrument payable after date or sight | A promissory note or bill of exchange, made payable at a specified period after date or sight thereof, must be presented for payment at maturity. |
NIA | 5 | null | 67 | Presentment for payment of promissory note payable by instalments | A promissory note payable by instalments must be presented for payment on the third day after the date fixed for payment of each instalment; and non-payment on such presentment has the same effect as non-payment of a note at maturity. |
NIA | 5 | null | 68 | Presentment for payment of instrument payable at specified place and not else where | A promissory note, bill of exchange or cheque made, drawn or accepted payable at a specified place and not elsewhere must, in order to charge any party thereto, be presented for payment at that place. |
NIA | 5 | null | 69 | Instrument payable at specified place | A promissory note or bill of exchange made, drawn or accepted payable at a specified place must, in order to charge the maker or drawer thereof, be presented for payment at that place. |
NIA | 5 | null | 70 | Presentment where no exclusive place specified | A promissory note or bill of exchange, not made payable as mentioned in sections 68 and 69, must be presented for payment at the place of business (if any), or at the usual residence, of the maker, drawee or acceptor thereof, as the case may be. |
NIA | 5 | null | 71 | Presentment when maker, etc., has no known place of business or residence. | If the maker, drawee or acceptor of a negotiable instrument has no known place of business or fixed residence, and no place is specified in the instrument for presentment for acceptance or payment, such presentment may be made to him in person wherever be can be found. |
NIA | 5 | null | 72 | Presentment of cheque to charge drawer | Subject to the provisions of section 84, a cheque must, in order to charge the drawer, be presented at the bank upon which it is drawn before the relation between the drawer and his banker has been altered to the prejudice of the drawer. |
NIA | 5 | null | 73 | Presentment of cheque to charge any other person | A cheque must, in order to charge any person except the drawer, be presented within a reasonable time after delivery thereof by such person. |
NIA | 5 | null | 74 | Presentment of instrument payable on demand | Subject to the provisions of section 31, a negotiable instrument payable on demand must be presented for payment within a reasonable time after it is received by the holder. |
NIA | 5 | null | 75 | Presentment by or to agent, representative of deceased, or assignee of insolvent | Presentment for acceptance or payment may be made to the duly authorized agent of the drawee, maker or acceptor, as the case may be, or, where the drawee, maker or acceptor has died, to his legal representative, or, where he has been declared an insolvent, to his assignee. |
NIA | 5 | null | 75A | Excuse for delay in presentment for acceptance or payment | Delay in presentment for acceptance or payment is excused if the delay is caused by circumstances beyond the control of the holder, and not imputable to his default, misconduct or negligence. When the cause of delay ceases to operate, presentment must be made within a reasonable time. |
NIA | 5 | null | 76 | When presentment unnecessary | No presentment for payment is necessary, and the instrument is dishonoured at the due date for presentment, in any of the following cases:
if the maker, drawee or acceptor intentionally prevents the presentment of the instrument, or, if the instrument being payable at his place of business, he closes such place on a business day during the usual business hours, or, if the instrument being payable at some other specified place, neither he nor any person authorized to pay it attends at such place during the usual business hours, or, if the instrument not being payable at any specified place, he cannot after due search be found;
as against any party sought to be charged therewith, if he has engaged to pay notwithstanding non-presentment;
as against any party if, after maturity, with knowledge that the instrument has not been presented, he makes a part payment on account of the amount due on the instrument, or promises to pay the amount due thereon in whole or in part, or otherwise waives his right to take advantage of any default in presentment for payment;
as against the drawer, if the drawer could not suffer damage from the want of such presentment. |
NIA | 5 | null | 77 | Liability of banker for negligently dealing with bill presented for payment | When a bill of exchange, accepted payable at a specified bank, has been duly presented there for payment and dishonoured, if the banker so negligently or improperly keeps, deals with or delivers back such bill as to cause loss to the holder, he must compensate the holder for such loss. |
NIA | 6 | null | 78 | To whom payment should be made | Subject to the provisions of section 82, clause ( c ), payment of the amount due on a promissory note, bill of exchange or cheque must, in order to discharge the maker or acceptor, be made to the holder of the instrument. |
NIA | 6 | null | 79 | Interest when rate specified | When interest at a specified rate is expressly made payable on a promissory note or bill of exchange, interest shall be calculated at the rate specified, on the amount of the principal money due thereon, from the date of the instrument, until tender or realization of such amount, or until such date after the institution of a suit to recover such amount as the Court directs. |
NIA | 6 | null | 80 | Interest when no rate specified | When no rate of interest is specified in the instrument, interest on the amount due thereon shall, notwithstanding any agreement relating to interest between any parties to the instrument, be calculated at the rate of eighteen per annum, from the date at which the same ought to have been paid by the party Charge, until tender or realization of the amount due thereon, or until such date after the institution of a suit to recover such amount as the Court directs. |
Subsets and Splits