Negotiable Instruments Act, 1881
Bare Act · 1881
An Act to define and amend the law relating to Promissory Notes, Bills of Exchange and Cheques. Preamble.--.
In the syllabus of: AIBE · Andhra Pradesh Civil Judge · Bihar Civil Judge · Bihar Higher Judiciary · CG Civil Judge · Delhi Higher Judiciary · Gujarat Civil Judge · HP Civil Judge · Jharkhand Civil Judge · Karnataka Civil Judge · Kerala Civil Judge · MP Civil Judge · MP Higher Judiciary · Odisha Civil Judge · Rajasthan Civil Judge · Rajasthan Higher Judiciary · Tamil Nadu Civil Judge · Telangana APO · Telangana Civil Judge · Telangana Higher Judiciary · UGC NET Law · UP Higher Judiciary · UPSC Law Optional
- Act number
- 26 of 1881
- Enacted
- 9 December 1881
- Contents
- 155 sections · 18 chapters
Free to read: the full English text of every section.
Contents
Chapter I — Preliminary
Chapter II — Of Notes, Billsand Cheques
- Section 4 – ''Promissory note''
- Section 5 – ''Bill of exchange''
- Section 7 – ''Drawer.''
- Section 8 – ''Holder''
- Section 9 – ''Holder in due course''
- Section 10 – ''Payment in due course''
- Section 11 – Inland instrument
- Section 12 – Foreign instrument
- Section 13 – ''Negotiable instrument''
- Section 14 – Negotiation
- Section 15 – Indorsement
- Section 16 – Indorsement ''in blank'' and ''in full''
- Section 17 – Ambiguous instruments
- Section 18 – Where amount is stated differently in figures and words
- Section 19 – Instruments payable on demand
- Section 20 – Inchoate stamped instruments
- Section 21 – ''At sight''
- Section 22 – ''Maturity''
- Section 23 – Calculating maturity of bill or note payable so many months after date or sight
- Section 24 – Calculating maturity of bill or note payable so many days after date or sight
- Section 25 – When day of maturity is a holiday
Sections
Chapter III
- Section 26 – Capacity to make, etc., promissory notes, etc
- Section 27 – Agency
- Section 28 – Liability of agent signing
- Section 29 – Liability of legal representative signing
- Section 30 – Liability of drawer
- Section 31 – Liability of drawee of cheque
- Section 32 – Liability of maker of note and acceptor of bill
- Section 33 – Only drawee can be acceptor except in need or for honour
- Section 34 – Acceptance by several drawees not partners
- Section 35 – Liability of indorser
- Section 36 – Liability of prior parties to holder in due course
- Section 37 – Maker, drawer and acceptor principals
- Section 38 – Prior party a principal in respect of each subsequent party
- Section 39 – Suretyship
- Section 40 – Discharge of indorser's liability
- Section 41 – Acceptor bound, although, indorsement forged
- Section 42 – Acceptance of bill drawn in fictitious name
- Section 43 – Negotiable instrument made, etc., without consideration
- Section 44 – Partial absence or failure of money-consideration
- Section 45 – Partial failure of consideration not consisting of money
- Section 45A – Holder's right to duplicate of lost bill
Chapter IV — Of Negotiation
- Section 46 – Delivery
- Section 47 – Negotiation by delivery
- Section 48 – Negotiation by indorsement
- Section 49 – Conversion of indorsement in blank into indorsement in full
- Section 50 – Effect of indorsement
- Section 51 – Who may negotiate
- Section 52 – Indorser who excludes his own liability or makes it conditional
- Section 53 – Holder deriving title from holder in due course
- Section 54 – Instrument indorsed in blank
- Section 55 – Conversion of indorsement in blank into indorsement in full
- Section 56 – Indorsement for part of sum due
- Section 57 – Legal representative cannot by delivery only negotiate instrument indorsed by deceased
- Section 58 – Instrument obtained by unlawful means or for unlawful consideration
- Section 59 – Instrument acquired after dishonour or when overdue
- Section 60 – Instrument negotiable till payment or satisfaction
Chapter V — Of Presentment
- Section 61 – Presentment for acceptance
- Section 62 – Presentment of promissory note for sight
- Section 63 – Drawee's time for deliberation
- Section 64 – Presentment for payment
- Section 65 – Hours for presentment
- Section 66 – Presentment for payment of instrument payable after date or sight
- Section 67 – Presentment for payment of promissory note payable by instalments
- Section 68 – Presentment for payment of instrument payable at specified place and not elsewhere
- Section 69 – Instrument payable at specified place
- Section 70 – Presentment where no exclusive place specified
- Section 71 – Presentment when maker, etc., has no known place of business or residence
- Section 72 – Presentment of cheque to charge drawer
- Section 73 – Presentment of cheque to charge any other person
- Section 74 – Presentment of instrument payable on demand
- Section 75 – Presentment by or to agent, representative of deceased, or assignee of insolvent
- Section 75A – Excuse for delay in presentment for acceptance or payment
- Section 76 – When presentment unnecessary
- Section 77 – Liability of banker for negligently dealing with bill presented for payment
Chapter VI — Of Payment And Interest
- Section 78 – To whom payment should be made
- Section 79 – Interest when rate specified
- Section 80 – Interest when no rate specified
- Section 81 – Delivery of instrument on payment or indemnity in case of loss
Chapter VII — Of Discharge From Liability On Notes, Bills And Cheques
- Section 82 – Discharge from liability
- Section 83 – Discharge by allowing drawee more than forty-eight hours to accept
- Section 84 – When cheque not duly presented and drawer damaged thereby
- Section 85 – Cheque payable to order
- Section 85A – Drafts drawn by one branch of a bank on another payable to order
- Section 86 – Parties not consenting discharged by qualified or limited acceptance
- Section 87 – Effect of material alteration
- Section 88 – Acceptor or indorser bound notwithstanding previous alteration
- Section 89 – Payment of instrument on which alteration is not apparent
- Section 90 – Extinguishment of rights of action on bill in acceptor's hands
Chapter VIII — Of Notice Of Dishonour
- Section 91 – Dishonour by non-acceptance
- Section 92 – Dishonour by non-payment
- Section 93 – By and to whom notice should be given
- Section 94 – Mode in which notice may be given
- Section 95 – Party receiving must transmit notice of dishonour
- Section 96 – Agent for presentment
- Section 97 – When party to whom notice given is dead
- Section 98 – When notice of dishonour is unnecessary
Chapter IX — Of Noting And Protest
- Section 99 – Noting
- Section 100 – Protest
- Section 101 – Contents of protest
- Section 102 – Notice of protest
- Section 103 – Protest for non-payment after dishonour by non-acceptance
- Section 104 – Protest of foreign bills
- Section 104A – When noting equivalent to protest
Chapter X — Of Reasonable Time
- Section 105 – Reasonable time
- Section 106 – Reasonable time of giving notice of dishonour
- Section 107 – Reasonable time for transmitting such notice
Chapter XI — Of Acceptance And Payment For Honour And Reference In Case Of Need
- Section 108 – Acceptance for honour
- Section 109 – How acceptance for honour must be made
- Section 110 – Acceptance not specifying for whose honour it is made
- Section 111 – Liability of acceptor for honour
- Section 112 – When acceptor for honour may be charged
- Section 113 – Payment for honour
- Section 114 – Right of payer for honour
- Section 115 – Drawee in case of need
- Section 116 – Acceptance and payment without protest
Chapter XII — Of Compensation
Chapter XIII — Special Rules Ofevidence
- Section 118 – Presumptions as to negotiable instruments
- Section 119 – Presumption on proof of protest
- Section 120 – Estoppel against denying original validity of instrument
- Section 121 – Estoppel against denying capacity of payee to indorse
- Section 122 – Estoppel against denying signature or capacity of prior party
Chapter XIV — Of Crossedcheques
- Section 123 – Cheque crossed generally
- Section 124 – Cheque crossed specially
- Section 125 – Crossing after issue
- Section 126 – Payment of cheque crossed generally
- Section 127 – Payment of cheque crossed specially more than once
- Section 128 – Payment in due course of crossed cheque
- Section 129 – Payment of crossed cheque out of due course
- Section 130 – Cheque bearing ''not negotiable''
- Section 131 – Non-liability of banker receiving payment of cheque
- Section 131A – Application of Chapter to drafts
Chapter XV — Of Bi Lls I N Sets
Chapter XVI — Of Internationallaw
- Section 134 – Law governing liability of maker, acceptor or indorser of foreign instrument
- Section 135 – Law of place of payment governs dishonour
- Section 136 – Instrument made, etc., out of India, but in accordance with the law of India
- Section 137 – Presumption as to foreign law
Chapter XVII — Of Penalties In Case Of Dishonour Of Certain Cheques For Insufficiency Of Funds In The Accounts
- Section 138 – Dishonour of cheque for insufficiency, etc., of funds in the account
- Section 139 – Presumption in favour of holder
- Section 140 – Defence which may not be allowed in any prosecution under section 138
- Section 142 – Cognizance of offences
- Section 142A – Validation for transfer of pending cases
- Section 143 – Power of Court to try cases summarily
- Section 143A – Power to direct interim compensation
- Section 144 – Mode of service of summons
- Section 145 – Evidence on affidavit
- Section 146 – Bank's slip prima facie evidence of certain facts
- Section 147 – Offences to be compoundable
- Section 148 – Power of Appellate Court to order payment pending appeal against conviction