Act 26 of 1881

The Negotiable Instruments Act, 1881

An Act to define and amend the law relating to Promissory Notes, Bills of Exchange and Cheques.

  • Ministry of Finance
  • Department of Financial Services
  • Enacted 1881-12-09
  • 155 sections
SectionTitle
1 Short title.Read
2 [Repealed.].Read
3 Interpretation-clause.Read
4 ''Promissory note''.Read
5 ''Bill of exchange''.Read
6 ''Cheque''.Read
7 ''Drawer.''Read
8 ''Holder''.Read
9 ''Holder in due course''.Read
10 ''Payment in due course''.Read
11 Inland instrument.Read
12 Foreign instrument.Read
13 ''Negotiable instrument''.Read
14 Negotiation.Read
15 Indorsement.Read
16 Indorsement ''in blank'' and ''in full''.Read
17 Ambiguous instruments.Read
18 Where amount is stated differently in figures and words.Read
19 Instruments payable on demand.Read
20 Inchoate stamped instruments.Read
21 ''At sight''.Read
22 ''Maturity''.Read
23 Calculating maturity of bill or note payable so many months after date or sight.Read
24 Calculating maturity of bill or note payable so many days after date or sight.Read
25 When day of maturity is a holiday.Read
26 Capacity to make, etc., promissory notes, etc.Read
27 Agency.Read
28 Liability of agent signing.Read
29 Liability of legal representative signing.Read
30 Liability of drawer.Read
31 Liability of drawee of cheque.Read
32 Liability of maker of note and acceptor of bill.Read
33 Only drawee can be acceptor except in need or for honour.Read
34 Acceptance by several drawees not partners.Read
35 Liability of indorser.Read
36 Liability of prior parties to holder in due course.Read
37 Maker, drawer and acceptor principals.Read
38 Prior party a principal in respect of each subsequent party.Read
39 Suretyship.Read
40 Discharge of indorser's liability.Read
41 Acceptor bound, although, indorsement forged.Read
42 Acceptance of bill drawn in fictitious name.Read
43 Negotiable instrument made, etc., without consideration.Read
44 Partial absence or failure of money-consideration.Read
45 Partial failure of consideration not consisting of money.Read
45A Holder's right to duplicate of lost bill.Read
46 Delivery.Read
47 Negotiation by delivery.Read
48 Negotiation by indorsement.Read
49 Conversion of indorsement in blank into indorsement in full.Read
50 Effect of indorsement.Read
51 Who may negotiate.Read
52 Indorser who excludes his own liability or makes it conditional.Read
53 Holder deriving title from holder in due course.Read
54 Instrument indorsed in blank.Read
55 Conversion of indorsement in blank into indorsement in full.Read
56 Indorsement for part of sum due.Read
57 Legal representative cannot by delivery only negotiate instrument indorsed by deceased.Read
58 Instrument obtained by unlawful means or for unlawful consideration.Read
59 Instrument acquired after dishonour or when overdue.Read
60 Instrument negotiable till payment or satisfaction.Read
61 Presentment for acceptance.Read
62 Presentment of promissory note for sight.Read
63 Drawee's time for deliberation.Read
64 Presentment for payment.Read
65 Hours for presentment.Read
66 Presentment for payment of instrument payable after date or sight.Read
67 Presentment for payment of promissory note payable by instalments.Read
68 Presentment for payment of instrument payable at specified place and not elsewhere.Read
69 Instrument payable at specified place.Read
70 Presentment where no exclusive place specified.Read
71 Presentment when maker, etc., has no known place of business or residence.Read
72 Presentment of cheque to charge drawer.Read
73 Presentment of cheque to charge any other person.Read
74 Presentment of instrument payable on demand.Read
75 Presentment by or to agent, representative of deceased, or assignee of insolvent.Read
75A Excuse for delay in presentment for acceptance or payment.Read
76 When presentment unnecessary.Read
77 Liability of banker for negligently dealing with bill presented for payment.Read
78 To whom payment should be made.Read
79 Interest when rate specified.Read
80 Interest when no rate specified.Read
81 Delivery of instrument on payment or indemnity in case of loss.Read
82 Discharge from liability.Read
83 Discharge by allowing drawee more than forty-eight hours to accept.Read
84 When cheque not duly presented and drawer damaged thereby.Read
85 Cheque payable to order.Read
85A Drafts drawn by one branch of a bank on another payable to order.Read
86 Parties not consenting discharged by qualified or limited acceptance.Read
87 Effect of material alteration.Read
88 Acceptor or indorser bound notwithstanding previous alteration.Read
89 Payment of instrument on which alteration is not apparent.Read
90 Extinguishment of rights of action on bill in acceptor's hands.Read
91 Dishonour by non-acceptance.Read
92 Dishonour by non-payment.Read
93 By and to whom notice should be given.Read
94 Mode in which notice may be given.Read
95 Party receiving must transmit notice of dishonour.Read
96 Agent for presentment.Read
97 When party to whom notice given is dead.Read
98 When notice of dishonour is unnecessary.Read
99 Noting.Read
100 Protest.Read
101 Contents of protest.Read
102 Notice of protest.Read
103 Protest for non-payment after dishonour by non-acceptance.Read
104 Protest of foreign bills.Read
104A When noting equivalent to protest.Read
105 Reasonable time.Read
106 Reasonable time of giving notice of dishonour.Read
107 Reasonable time for transmitting such notice.Read
108 Acceptance for honour.Read
109 How acceptance for honour must be made.Read
110 Acceptance not specifying for whose honour it is made.Read
111 Liability of acceptor for honour.Read
112 When acceptor for honour may be charged.Read
113 Payment for honour.Read
114 Right of payer for honour.Read
115 Drawee in case of need.Read
116 Acceptance and payment without protest.Read
117 Rules as to compensation.Read
118 Presumptions as to negotiable instruments.Read
119 Presumption on proof of protest.Read
120 Estoppel against denying original validity of instrument.Read
121 Estoppel against denying capacity of payee to indorse.Read
122 Estoppel against denying signature or capacity of prior party.Read
123 Cheque crossed generally.Read
124 Cheque crossed specially.Read
125 Crossing after issue.Read
126 Payment of cheque crossed generally.Read
127 Payment of cheque crossed specially more than once.Read
128 Payment in due course of crossed cheque.Read
129 Payment of crossed cheque out of due course.Read
130 Cheque bearing ''not negotiable''.Read
131 Non-liability of banker receiving payment of cheque.Read
131A Application of Chapter to drafts.Read
132 Set of bills.Read
133 Holder of first acquired part entitled to.Read
134 Law governing liability of maker, acceptor or indorser of foreign instrument.Read
135 Law of place of payment governs dishonour.Read
136 Instrument made, etc., out of India, but in accordance with the law of India.Read
137 Presumption as to foreign law.Read
138 Dishonour of cheque for insufficiency, etc., of funds in the account.Read
139 Presumption in favour of holder.Read
140 Defence which may not be allowed in any prosecution under section 138.Read
141 Offences by companies.Read
142 Cognizance of offences.Read
142A Validation for transfer of pending cases.Read
143 Power of Court to try cases summarily.Read
143A Power to direct interim compensation.Read
144 Mode of service of summons.Read
145 Evidence on affidavit.Read
146 Bank's slip prima facie evidence of certain facts.Read
147 Offences to be compoundable.Read
148 Power of Appellate Court to order payment pending appeal against conviction.Read
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