Negotiable Instruments Act, 1881
[Act No. 26 of Year 1881, dated 9-12-1881]
| Contents | |
| Sections | Particulars |
| Chapter I | Preliminary |
| 1 | Short title |
| 2 | Repeal of enactments |
| 3 | Interpretation clause |
| Chapter II | Notes, Bills And Cheques |
| 4 | "Promissory note |
| 5 | "Bill of exchange" |
| 6 | "Cheque" |
| 7 | "Drawer", "drawee" |
| 8 | Holder |
| 9 | "Holder in due course" |
| 10 | "Payment in due course" |
| 11 | "Inland instrument" |
| 12 | "Foreign instrument" |
| 13 | "Negotiable instrument" |
| 14 | Negotiation |
| 15 | Endorsement |
| 16 | Endorsement "in blank" and "in full"-"endorsee" |
| 17 | Ambiguous instruments |
| 18 | Where amount is stated differently in figures and words |
| 19 | Instruments payable on demand |
| 20 | Inchoate stamped instruments |
| 21 | At sight, On presentment, After sight |
| 22 | "Maturity" |
| 23 | Calculating maturity of bill or note payable so many months after date or sight |
| 24 | Calculating maturity of bill or note payable so many days after date or sight |
| 25 | When day of maturity is a holiday |
| Chapter III | Parties To Notes, Bills And Cheques |
| 26 | Capacity to make, etc., promissory notes, etc. |
| 27 | Agency |
| 28 | Liability of agent signing |
| 29 | Liability of legal representative signing |
| 30 | Liability of drawer |
| 31 | Liability of drawee of cheque |
| 32 | Liability of maker of note and acceptor of bill |
| 33 | Only drawee can be acceptor except in need or for honor |
| 34 | Acceptance by several drawees not partners |
| 35 | Liability of endorser |
| 36 | Liability of prior parties to holder in due course |
| 37 | Maker, drawer and acceptor principals |
| 38 | Prior party a principal in respect of each subsequent party |
| 39 | Suretyship |
| 40 | Discharge of endorser's liability |
| 41 | Acceptor bound, although endorsement forged |
| 42 | Acceptance of bill drawn in fictitious name |
| 43 | Negotiable instrument made, etc. without consideration |
| 44 | Partial absence or failure of money-consideration |
| 45 | Partial failure of consideration not consisting of money |
| 45A | Holder's right to duplicate of lost bill |
| Chapter IV | Negotiation |
| 46 | Delivery |
| 47 | Negotiation by delivery |
| 48 | Negotiation by endorsement |
| 49 | Conversion of endorsement in blank into endorsement in full |
| 50 | Effect of endorsement |
| 51 | Who may negotiate |
| 52 | Endorser who excludes his own liability or makes it conditional |
| 53 | Holder deriving title from holder in due course |
| 54 | Instrument endorsed in blank |
| 55 | Conversion of endorsement in blank into endorsement in full |
| 56 | Endorsement for part of sum due |
| 57 | Legal representative cannot by delivery only negotiate instrument endorsed by deceased |
| 58 | Instrument obtained by unlawful means or for unlawful consideration |
| 59 | Instrument acquired after dishonor or when overdue |
| 60 | Instrument negotiable till payment or satisfaction |
| Chapter V | Presentment |
| 61 | Presentment for acceptance |
| 62 | Presentment of promissory note for sight |
| 63 | Drawee's time for deliberation |
| 64 | Presentment for payment |
| 65 | Hours for presentment |
| 66 | Presentment for payment of instrument payable after date or sight |
| 67 | Presentment for payment of promissory note payable by installments |
| 68 | Presentment for payment of instrument payable at specified place and not elsewhere |
| 69 | Instrument payable at specified place |
| 70 | Presentment where no exclusive place specified |
| 71 | Presentment when maker, etc., has no known place of business or residence |
| 72 | Presentment of cheque to charge drawer |
| 73 | Presentment of cheque to charge any other person |
| 74 | Presentment of instrument payable at demand |
| 75 | Presentment by or to agent, representative of deceased, or assignee of insolvent |
| 76 | When presentment unnecessary |
| 77 | Liability of banker for negligently dealing with bill presented for payment |
| Chapter VI | Payment And Interest |
| 78 | To whom payment should be made |
| 79 | Interest when rate specified |
| 80 | Interest when no rate specified |
| 81 | Delivery of instrument on payment or indemnity in case of loss |
| Chapter VII | Discharge From Liability On Notes, Bills And Cheques |
| 82 | Discharge from liability |
| 83 | Discharge by allowing drawee more than forty-eight hours to accept |
| 84 | When cheque not duly presented and drawer damaged thereby |
| 85 | Cheque payable to order |
| 85A | Drafts drawn by one branch of a bank on another payable to order |
| 86 | Parties not consenting discharged by qualified or limited acceptance |
| 87 | Affect of material alteration |
| 88 | Acceptor or endorser bound notwithstanding previous alteration |
| 89 | Payment of instrument on which alteration is not apparent |
| 90 | Extinguishment of rights of action on bill in acceptor's hands |
| Chapter VIII | Notice Of Dishonour |
| 91 | Dishonor by non-acceptance |
| 92 | Dishonor by non-payment |
| 93 | By and to whom notice should be given |
| 94 | Mode in which notice may be given |
| 95 | Party receiving must transmit notice of dishonor |
| 96 | Agent for presentment |
| 97 | When party to whom notice given is dead |
| 98 | When, notice of dishonor is unnecessary |
| Chapter IX | Noting And Protest |
| 99 | Noting |
| 100 | Protest |
| 101 | Contents of protest |
| 102 | Notice of protest |
| 103 | Protest for non-payment after dishonor by non-acceptance |
| 104 | Protest of foreign bills |
| 104A | When noting equivalent to protest |
| Chapter X | Reasonable Time |
| 105 | Reasonable time |
| 106 | Reasonable time of giving notice of dishonor |
| 107 | Reasonable time for transmitting such notice |
| Chapter XI | Acceptance And Payment For Honour And Reference In Case Of Need |
| 108 | Acceptance for honor |
| 109 | How acceptance for honor must be made |
| 110 | Acceptance not specifying for whose honor it is made |
| 111 | Liability of acceptor for honor |
| 112 | When acceptor for honor may be charged |
| 113 | Payment for honor |
| 114 | Right of payer for honor |
| 115 | Drawee in case of need |
| 116 | Acceptance and payment without protest |
| Chapter XII | Compensation |
| 117 | Rules as to compensation |
| Chapter XIII | Special Rules Of Evidence |
| 118 | Presumptions as to negotiable instruments Until the contrary is proved, the following presumption shall be made |
| 119 | Presumption on proof of protest |
| 120 | Estoppel against denying original validity of instrument |
| 121 | Estoppel against denying capacity of payee to endorse |
| 122 | Estoppel against denying signature or capacity of prior party |
| Chapter XIV | Crossed Cheques |
| 123 | Cheque crossed generally |
| 124 | Cheque crossed specially |
| 125 | Crossing after issue |
| 126 | Payment of cheque crossed generally |
| 127 | Payment of cheque crossed specially more than once |
| 128 | Payment in due course of crossed cheque |
| 129 | Payment of crossed cheque out of due course |
| 130 | Cheque bearing not negotiable |
| 131 | Non-liability of banker receiving payment of cheque |
| 131A | Application of chapter to drafts |
| Chapter XV | Bills In Sets |
| 132 | Set of bills |
| 133 | Holder of first acquired part entitled to all |
| Chapter XVI | International Law |
| 134 | Law governing liability of maker, acceptor or endorser of foreign instrument |
| 135 | Law of place of payment governs dishonor |
| 136 | Instrument made, etc. out of India, but in accordance with the law of India |
| 137 | Presumption as to foreign law |
| Chapter XVII | Penalties In Case Of Dishonour Of Certain Cheques For Insufficiency Of Funds In The Accounts |
| 138 | Dishonor of cheque for insufficiency, etc., of funds in the accounts |
| Supreme Court 3762 | |
| 139 | Presumption in favor of holder |
| 140 | Defense which may not be allowed in any prosecution under section 138 |
| 141 | Offences by companies |
| 142 | Cognizance of offences |
| Schedule | Enactment [Repealed] |
An Act to define the law relating to promissory notes, bills of exchange and cheques Whereas it is expedient to define and amend the law relating to promissory notes, bills of exchange and cheques;
It is hereby enacted as follows:-