Act Text
Section1 - Short title.—This Act may be called the Negotiable Instruments Act,
Section2 - The words “except the State of Jammu and Kashmir”, which were subs. by Act 3 of 1951, for “except Part B States”,
Section3 - Interpretation-clause.—In this Act—
Section4 - Definition of the word “India”, which was subs. by Act 3 of 1951, for the definition of the word “State”, omitted by
Section5 - Subs. by Act 37 of 1955, s. 2, for the definition of the word “banker”
Section6 - Omitted by Act 53 of 1952, s. 16
Section11 - Inland instrument.—A promissory note, bill of exchange or cheque drawn or made in 2[India] and made payable in, or
Section12 - Foreign instrument. —Any such instrument not so drawn, made or made payable shall be deemed to be a foreign instrument
Section14 - Negotiation.—When a promissory note, bill of exchange or cheque is transferred to any person, so as to constitute that
Section15 - Indorsement.—When the maker or holder of a negotiable instrument signs the same, otherwise than as such maker, for the
Section16 - Indorsement “in blank” and “in full”.— 5 [
Section17 - Ambiguous instruments.—Where an instrument may be construed either as a promissory note or bill of exchange, the holder
Section18 - Where amount is stated differently in figures and words.—If the amount undertaken or ordered to be paid is stated
Section19 - Instruments payable on demand.—A promissory note or bill of exchange, in which no time for payment is specified, and a
Section20 - Inchoate stamped instruments.—Where one person signs and delivers to another a paper stamped in accordance with the law
Section23 - Calculating maturity of bill or note payable so many months after date or sight.—In calculating the date at which a
Section24 - Calculating maturity of bill or note payable so many days after date or sight.—In calculating the date at which a
Section25 - When day of maturity is a holiday.—When the day on which a promissory note or bill of exchange is at maturity is a
Section26 - Capacity to make, etc., promissory notes, etc.—Every person capable of contracting, according to the law to which he is
Section27 - Agency.— Every person capable of binding himself or of being bound, as mentioned in section 26, may so bind himself or
Section28 - Liability of agent signing.—An agent who signs his name to a promissory note, bill of exchange or cheque without
Section29 - Liability of legal representative signing.—A legal representative of a deceased person who signs his name to a
Section30 - Liability of drawer.—The drawer of a bill of exchange or cheque is bound, in case of dishonour by the drawee or
Section31 - Liability of drawee of cheque.—The drawee of a cheque having sufficient funds of the drawer in his hands properly
Section32 - Liability of maker of note and acceptor of bill.—In the absence of a contract to the contrary, the maker of a
Section33 - Only drawee can be acceptor except in need or for honour.—No person except the drawee of a bill exchange, or all or
Section34 - Acceptance by several drawees not partners.—Where there are several drawees of a bill of exchange who are not partners,
Section35 - Liability of indorser.—In the absence of a contract to the contrary, whoever indorses and delivers a negotiable
Section36 - Liability of prior parties to holder in due course.—Every prior party to a negotiable instrument is liable thereon to a
Section37 - Maker, drawer and acceptor principals.—The maker of a promissory note or cheque, the drawer of a bill of exchange until
Section38 - Prior party a principal in respect of each subsequent party.—As between the parties so liable as sureties, each prior
Section39 - Suretyship.—When the holder of an accepted bill of exchange enters into any contract with the acceptor which, under
Section40 - Discharge of indorser's liability.—Where the holder of a negotiable instrument, without the consent of the indorser,
Section41 - Acceptor bound, although, indorsement forged.—An acceptor of a bill of exchange already indorsed is not relieved from
Section43 - Negotiable instrument made, etc., without consideration.—A negotiable instrument made, drawn, accepted, indorsed or
Section44 - Partial absence or failure of money-consideration.—When the consideration for which a person signed a promissory note,
Section45 - Partial failure of consideration not consisting of money.—Where a part of the consideration for which a person signed a
Section46 - Delivery.—The making, acceptance or indorsement of a promissory note, bill of exchange or cheque is completed by
Section47 - Negotiation by delivery.—Subject to the provisions of section 58, a promissory note, bill of exchange or cheque payable
Section48 - Negotiation by indorsement.—Subject to the provisions of section 58, a promissory note, bill of exchange or cheque
Section49 - Conversion of indorsement in blank into indorsement in full.—The holder of a negotiable instrument indorsed in blank
Section50 - Effect of indorsement.—The indorsement of a negotiable instrument followed by delivery transfers to the indorsee the
Section51 - Who may negotiate.—Every sole maker, drawer, payee or indorsee, or all of several joint makers, drawers, payees or
Section52 - Indorser who excludes his own liability or makes it conditional.—The indorser of a negotiable instrument may, by
Section53 - Holder deriving title from holder in due course.—A holder of a negotiable instrument who derives title from a holder in
Section54 - Instrument indorsed in blank.—Subject to the provisions hereinafter contained as to crossed cheques, a negotiable
Section55 - Conversion of indorsement in blank into indorsement in full.—If a negotiable instrument, after having been indorsed in
Section56 - Indorsement for part of sum due.—No writing on a negotiable instrument is valid for the purpose of negotiation if such
Section57 - Legal representative cannot by delivery only negotiate instrument indorsed by deceased.— The legal representative of a
Section58 - Instrument obtained by unlawful means or for unlawful consideration.—When a negotiable instrument has been lost, or has
Section59 - Instrument acquired after dishonour or when overdue.—The holder of a negotiable instrument, who has acquired it after
Section60 - Instrument negotiable till payment or satisfaction.—A negotiable instrument may be negotiated
Section61 - Presentment for acceptance.—A bill of exchange payable after sight must, if no time or place is specified therein for
Section62 - Presentment of promissory note for sight.—A promissory note, payable at a certain period after sight, must be presented
Section63 - Drawee’s time for deliberation.—The holder must, if so required by the drawee of a bill of exchange presented to him
Section64 - Presentment for payment.—3[
Section65 - Hours for presentment—Presentment for payment must be made during the usual hours of business and, if at a banker's
Section66 - Presentment for payment of instrument payable after date or sight—A promissory note or bill of exchange, made payable
Section67 - Presentment for payment of promissory note payable by instalments.—A promissory note payable by instalments must be
Section68 - Presentment for payment of instrument payable at specified place and not elsewhere.—A promissory note, bill of exchange
Section69 - Instrument payable at specified place.—A promissory note or bill of exchange made, drawn or accepted payable at a
Section70 - Presentment where no exclusive place specified.—A promissory note or bill of exchange, not made payable as mentioned in
Section71 - Presentment when maker, etc., has no known place of business or residence.—If the maker, drawee or acceptor of a
Section72 - Presentment of cheque to charge drawer.— 1[Subject to the provisions of section 84,] a cheque must, in order to charge
Section73 - Presentment of cheque to charge any other person.—A cheque must, in order to charge any person except the drawer, be
Section74 - Presentment of instrument payable on demand.—Subject to the provisions of section 31, a negotiable instrument payable
Section75 - Presentment by or to agent, representative of deceased, or assignee of insolvent.— Presentment for acceptance or
Section76 - When presentment unnecessary.—No presentment for payment is necessary, and the instrument is dishonoured at the due
Section77 - Liability of banker for negligently dealing with bill presented for payment.—When a bill of exchange, accepted payable
Section79 - Interest when rate specified.—When interest at a specified rate is expressly made payable on a promissory note or bill
Section80 - Interest when no rate specified.— When no rate of interest is specified in the instrument, interest on the amount due
Section81 - Delivery of instrument on payment or indemnity in case of loss.—3[
Section82 - Discharge from liability.—The maker, acceptor or indorser respectively of a negotiable instrument is discharged from
Section83 - Discharge by allowing drawee more than forty-eight hours to accept.—If the holder of a bill of exchange allows the
Section85 - Cheque payable to order.—3[
Section86 - Parties not consenting discharged by qualified or limited acceptance.—If the holder of a bill of exchange acquiesces in
Section87 - Effect of material alteration.—Any material alteration of a negotiable instrument renders the same void as against
Section88 - Acceptor or indorser bound notwithstanding previous alteration.—An acceptor or indorser of a negotiable instrument is
Section89 - Payment of instrument on which alteration is not apparent.—1[
Section90 - Extinguishment of rights of action on bill in acceptor's hands.—If a bill of exchange which has been negotiated is, at
Section91 - Dishonour by non-acceptance.—A bill of exchange is said to be dishonoured by non-acceptance when the drawee, or one of
Section92 - Dishonour by non-payment.—A promissory note, bill of exchange or cheque is said to be dishonoured by non-payment when
Section93 - By and to whom notice should be given.—When a promissory note, bill of exchange or cheque is dishonoured by
Section94 - Mode in which notice may be given.—Notice of dishonour may be given to a duly authorized agent of the person to whom it
Section95 - Party receiving must transmit notice of dishonour.—Any party receiving notice of dishonour must, in order to render any
Section96 - Agent for presentment.—When the instrument is deposited with an agent for presentment, the agent is entitled to the
Section97 - When party to whom notice given is dead.—when the party to whom notice of dishonour is dispatched is dead, but the
Section98 - When notice of dishonour is unnecessary.—No notice of dishonour is necessary—
Section99 - Noting.—When a promissory note or bill of exchange has been dishonoured by non-acceptance or non-payment, the holder
Section100 - Protest.—When a promissory note or bill of exchange has been dishonoured by non-acceptance or non-payment, the holder
Section101 - Contents of protest.—A protest under section 100 must contain—
Section102 - Notice of protest.—When a promissory note or bill of exchange is required by law to be protested, notice of such
Section103 - Protest for non-payment after dishonour by non-acceptance.—All bills of exchange drawn payable at some other place than
Section104 - Protest of foreign bills.—Foreign bills of exchange must be protested for dishonour when such protest is required by
Section105 - Reasonable time.—In determining what is a reasonable time for presentment for acceptance or payment, for giving notice
Section106 - Reasonable time of giving notice of dishonour.—If the holder and the party to whom notice of dishonour is given carry
Section107 - Reasonable time for transmitting such notice.—A party receiving notice of dishonour, who seeks to enforce his right
Section108 - Acceptance for honour.—When a bill of exchange has been noted or protested for non- acceptance or for better security,
Section109 - How acceptance for honour must be made.—A person desiring to accept for honour must, 2
Section110 - Acceptance not specifying for whose honour it is made.—Where the acceptance does not express for whose honour it is
Section111 - Liability of acceptor for honour.—An acceptor for honour binds himself to all parties subsequent to the party for whose
Section112 - When acceptor for honour may be charged.—An acceptor for honour cannot be charged unless the bill has at its maturity
Section113 - Payment for honour.—When a bill of exchange has been noted or protested for non-payment, any person may pay the same
Section114 - Right of payer for honour.—Any person so paying is entitled to all the rights in respect of the bill, of the holder at
Section115 - Drawee in case of need.—Where a drawee in case of need is named in a bill of exchange, or in any indorsement thereon,
Section116 - Acceptance and payment without protest.—A drawee in case of need may accept and pay the bill of exchange without
Section117 - Rules as to compensation.—The compensation payable in case of dishonour of a promissory note, bill of exchange or
Section118 - Presumptions as to negotiable instruments.—Until the contrary is proved, the following presumptions shall be made:—
Section119 - Presumption on proof of protest.—Ina suit upon an instrument which has been dishonoured, the Court shall, on proof of
Section120 - Estoppel against denying original validity of instrument.—No maker of a promissory note, and no drawer of a bill of
Section121 - Estoppel against denying capacity of payee to indorse.—No maker of a promissory note and no acceptor of a bill of
Section122 - Estoppel against denying signature or capacity of prior party.—No indorser of a negotiable instrument shall, in a suit
Section123 - Cheque crossed generally.—Where a cheque bears across its face an addition of the words “and company” or any
Section124 - Cheque crossed specially.—Where a cheque bears across its face an addition of the name of a banker, either with or
Section125 - Crossing after issue.—Where a cheque is uncrossed, the holder may cross it generally or specially
Section126 - Payment of cheque crossed generally.—Where a cheque is crossed generally, the banker on whom it is drawn shall not pay
Section127 - Payment of cheque crossed specially more than once.—Where a cheque is crossed specially to more than one banker, except
Section128 - Payment in due course of crossed cheque.—Where the banker on whom a crossed cheque is drawn has paid the same in due
Section129 - Payment of crossed cheque out of due course.—Any banker paying a cheque crossed generally otherwise than to a banker,
Section130 - Cheque bearing “not negotiable”.—A person taking a cheque crossed generally or specially, bearing in either case the
Section131 - Non-liability of banker receiving payment of cheque.—A banker who has in good faith and without negligence received
Section132 - Set of bills.—Bills of exchange may be drawn in parts, each part being numbered and containing a provision that it
Section133 - Holder of first acquired part entitled to all—As between holders in due course of different parts of the same set, he
Section134 - Law governing liability of maker, acceptor or indorser of foreign instrument.—In the absence of a contract to the
Section135 - Law of place of payment governs dishonour.—Where a promissory note, bill of exchange or cheque is made payable in a
Section136 - Instrument made, etc., out of India, but in accordance with the law of India.—If a negotiable instrument is made,
Section137 - Presumption as to foreign law.—The law of any foreign country 1*** regarding promissory notes, bills of exchange and
Section138 - Dishonour of cheque for insufficiency, etc., of funds in the account.—Where any cheque drawn by a person on an account
Section139 - Presumption in favour of holder.—It shall be presumed, unless the contrary is proved, that the holder of a cheque
Section140 - Defence which may not be allowed in any prosecution under section 138.—Itshall not be a defence in a prosecution for an
Section141 - Offences by companies.—
Section142 - Cognizance of offences.—1[
Section143A - (2) The amount referred to in sub-section
Section144 - Mode of service of summons.—
Section145 - Evidence on affidavit.—
Section146 - Bank’s slip prima facie evidence of certain facts.—The Court shall, in respect of every proceeding under this Chapter,
Section147 - Offences to be compoundable.—Notwithstanding anything contained in the Code of Criminal Procedure, 1973
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