Negotiable Instruments Act

379 indexed judgments cite this act. Sections below link to the judgments in the corpus that rely on them, alongside a recently decided selection.

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Section 1Short title.—This Act may be called the Negotiable Instruments Act, 1881.
Section 2Subs. by Act 8 of 1919, s. 5, for “payable to, or to the order- of, a specified person”.
Section 3Interpretation-clause.—In this Act—
Section 4Ins. by s. 3, ibid, (w.e.f. 6-2-2003).
Section 5The brackets, words and figures “(except in cases provided for by the Code of Civil Procedure, s. 532)” omitted by Act 30 of 1926 , s. 3.
Section 6“Cheque”.
Section 7“Drawer” “Drawee”.—The maker of a bill of exchange or cheque is called the “drawer”; the
Section 8“Holder”.—The “holder” of a promissory note, bill of exchange or cheque means any person
Section 9“Holder in due course”.—“Holder in due course” means any person who for consideration
Section 10“Payment in due course”.—“Payment in due course” means payment in accordance with the
Section 11Inland instrument.—A promissory note, bill of exchange or cheque drawn or made in 2[India]
Section 12Foreign instrument. —Any such instrument not so drawn, made or made payable shall be
Section 13“Negotiable instrument”.—3[(1) A “negotiable instrument” means a promissory note, bill of
Section 14Negotiation.—When a promissory note, bill of exchange or cheque is transferred to any person,
Section 15Indorsement.—When the maker or holder of a negotiable instrument signs the same, otherwise
Section 16Indorsement “in blank” and “in full”.—5[(1)] If the indorser signs his name only, the
Section 17Ambiguous instruments.—Where an instrument may be construed either as a promissory note or
Section 18Where amount is stated differently in figures and words.—If the amount undertaken or
Section 19Instruments payable on demand.—A promissory note or bill of exchange, in which no time for
Section 20Inchoate stamped instruments.—Where one person signs and delivers to another a paper
Section 21“At sight”.—“On presentment”.—Ina promissory note or bill of exchange the expressions “at
Section 22“Maturity”.—The maturity of a promissory note or bill of exchange is the date at which it falls
Section 23Calculating maturity of bill or note payable so many months after date or sight.
Section 24Calculating maturity of bill or note payable so many days after date or sight.—In calculating
Section 25When day of maturity is a holiday.—When the day on which a promissory note or bill of
Section 26Capacity to make, etc., promissory notes, etc.—Every person capable of contracting, according
Section 27Agency.— Every person capable of binding himself or of being bound, as mentioned in section
Section 28Liability of agent signing.—An agent who signs his name to a promissory note, bill of exchange
Section 29Liability of legal representative signing.—A legal representative of a deceased person who
Section 30Liability of drawer.—The drawer of a bill of exchange or cheque is bound, in case of dishonour
Section 31Liability of drawee of cheque.—The drawee of a cheque having sufficient funds of the drawer in his
Section 32Liability of maker of note and acceptor of bill.—In the absence of a contract to the contrary, the
Section 33Only drawee can be acceptor except in need or for honour.—No person except the drawee of
Section 34Acceptance by several drawees not partners.—Where there are several drawees of a bill of
Section 35Liability of indorser.—In the absence of a contract to the contrary, whoever indorses and delivers a
Section 36Liability of prior parties to holder in due course.—Every prior party to a negotiable instrument
Section 37Maker, drawer and acceptor principals.—The maker of a promissory note or cheque, the drawer of
Section 38Prior party a principal in respect of each subsequent party.—As between the parties so liable
Section 39Suretyship.—When the holder of an accepted bill of exchange enters into any contract with the
Section 40Discharge of indorser’s liability.
Section 41Acceptor bound, although, indorsement forged.—An acceptor of a bill of exchange already
Section 42Acceptance of bill drawn in fictitious name.—An acceptor of a bill of exchange drawn in a
Section 43Negotiable instrument made, etc., without consideration.—A negotiable instrument made,
Section 44Partial absence or failure of money-consideration.—When the consideration for which a
Section 45Partial failure of consideration not consisting of money.—Where a part of the consideration
Section 46Delivery.—The making, acceptance or indorsement of a promissory note, bill of exchange or
Section 47Negotiation by delivery.—Subject to the provisions of section 58, a promissory note, bill of
Section 48Negotiation by indorsement.—Subject to the provisions of section 58, a promissory note, bill of
Section 49Conversion of indorsement in blank into indorsement in full.—The holder of a negotiable
Section 50Effect of indorsement.—The indorsement of a negotiable instrument followed by delivery
Section 51Who may negotiate.—Every sole maker, drawer, payee or indorsee, or all of several joint
Section 52Indorser who excludes his own liability or makes it conditional.—The indorser of a negotiable
Section 53Holder deriving title from holder in due course.—A holder of a negotiable instrument who
Section 54Instrument indorsed in blank.—Subject to the provisions hereinafter contained as to crossed
Section 55Conversion of indorsement in blank into indorsement in full.—If a negotiable instrument,
Section 56Indorsement for part of sum due.—No writing on a negotiable instrument is valid for the
Section 57Legal representative cannot by delivery only negotiate instrument indorsed by deceased.—
Section 58Instrument obtained by unlawful means or for unlawful consideration.—When a negotiable
Section 59Instrument acquired after dishonour or when overdue.
Section 60Instrument negotiable till payment or satisfaction.
Section 61Presentment for acceptance.—A bill of exchange payable after sight must, if no time or place is
Section 62Presentment of promissory note for sight.—A promissory note, payable at a certain period after
Section 63Drawee’s time for deliberation.—The holder must, if so required by the drawee of a bill of
Section 64Presentment for payment.—3[(1)] Promissory notes, bills of exchange and cheques must be
Section 65Hours for presentment—Presentment for payment must be made during the usual hours of
Section 66Presentment for payment of instrument payable after date or sight—A promissory note or
Section 67Presentment for payment of promissory note payable by instalments.—A promissory note
Section 68Presentment for payment of instrument payable at specified place and not elsewhere.—A
Section 69Instrument payable at specified place.—A promissory note or bill of exchange made, drawn or
Section 70Presentment where no exclusive place specified.—A promissory note or bill of exchange, not
Section 71Presentment when maker, etc., has no known place of business or residence.—If the maker,
Section 72Presentment of cheque to charge drawer.— 1[Subject to the provisions of section 84,] a cheque
Section 73Presentment of cheque to charge any other person.—A cheque must, in order to charge any
Section 74Presentment of instrument payable on demand.—Subject to the provisions of section 31, a
Section 75Presentment by or to agent, representative of deceased, or assignee of insolvent.—
Section 76When presentment unnecessary.—No presentment for payment is necessary, and the instrument
Section 77Liability of banker for negligently dealing with bill presented for payment.—When a bill of
Section 78To whom payment should be made.—Subject to the provisions of section 82, clause (c),
Section 79Interest when rate specified.—When interest at a specified rate is expressly made payable on a
Section 80Interest when no rate specified.— When no rate of interest is specified in the instrument,
Section 81Delivery of instrument on payment or indemnity in case of loss.
Section 82Discharge from liability.—The maker, acceptor or indorser respectively of a negotiable
Section 83Discharge by allowing drawee more than forty-eight hours to accept.—If the holder of a bill
Section 84When cheque not duly presented and drawer damaged thereby.
Section 85Cheque payable to order.—3[(1)] Where a cheque payable to order purports to be endorsed by or
Section 86Parties not consenting discharged by qualified or limited acceptance.—If the holder of a
Section 87Effect of material alteration.—Any material alteration of a negotiable instrument renders the
Section 88Acceptor or indorser bound notwithstanding previous alteration.—An acceptor or indorser of
Section 89Payment of instrument on which alteration is not apparent.—1[(1)] Where a promissory note,
Section 90Extinguishment of rights of action on bill in acceptor's hands.—If a bill of exchange which
Section 91Dishonour by non-acceptance.—A bill of exchange is said to be dishonoured by non-acceptance
Section 92Dishonour by non-payment.—A promissory note, bill of exchange or cheque is said to be
Section 93By and to whom notice should be given.—When a promissory note, bill of exchange or cheque
Section 94Mode in which notice may be given.—Notice of dishonour may be given to a duly authorized agent
Section 95Party receiving must transmit notice of dishonour.—Any party receiving notice of dishonour
Section 96Agent for presentment.—When the instrument is deposited with an agent for presentment, the
Section 97When party to whom notice given is dead.—when the party to whom notice of dishonour is
Section 98When notice of dishonour is unnecessary.—No notice of dishonour is necessary—
Section 99Noting.—When a promissory note or bill of exchange has been dishonoured by non-acceptance
Section 100Protest.—When a promissory note or bill of exchange has been dishonoured by non-acceptance
Section 101Contents of protest.—A protest under section 100 must contain—
Section 102Notice of protest.—When a promissory note or bill of exchange is required by law to be
Section 103Protest for non-payment after dishonour by non-acceptance.—All bills of exchange drawn
Section 104Protest of foreign bills.—Foreign bills of exchange must be protested for dishonour when such
Section 105Reasonable time.—In determining what is a reasonable time for presentment for acceptance or
Section 106Reasonable time of giving notice of dishonour.—If the holder and the party to whom notice of
Section 107Reasonable time for transmitting such notice.—A party receiving notice of dishonour, who
Section 108Acceptance for honour.—When a bill of exchange has been noted or protested for non-
Section 109How acceptance for honour must be made.—A person desiring to accept for honour must,
Section 110Acceptance not specifying for whose honour it is made.—Where the acceptance does not
Section 111Liability of acceptor for honour.—An acceptor for honour binds himself to all parties
Section 112When acceptor for honour may be charged.—An acceptor for honour cannot be charged
Section 113Payment for honour.—When a bill of exchange has been noted or protested for non-payment,
Section 114Right of payer for honour.—Any person so paying is entitled to all the rights in respect of the
Section 115Drawee in case of need.
Section 116Acceptance and payment without protest.—A drawee in case of need may accept and pay the
Section 117Rules as to compensation.—The compensation payable in case of dishonour of a promissory
Section 118Presumptions as to negotiable instruments.—Until the contrary is proved, the following
Section 119Presumption on proof of protest.—Ina suit upon an instrument which has been
Section 120Estoppel against denying original validity of instrument.—No maker of a promissory note,
Section 121Estoppel against denying capacity of payee to indorse.—No maker of a promissory note and
Section 122Estoppel against denying signature or capacity of prior party.
Section 123Cheque crossed generally.—Where a cheque bears across its face an addition of the words
Section 124Cheque crossed specially.—Where a cheque bears across its face an addition of the name of a
Section 125Crossing after issue.—Where a cheque is uncrossed, the holder may cross it generally or
Section 126Payment of cheque crossed generally.—Where a cheque is crossed generally, the banker on
Section 127Payment of cheque crossed specially more than once.—Where a cheque is crossed specially
Section 128Payment in due course of crossed cheque.—Where the banker on whom a crossed cheque is
Section 129Payment of crossed cheque out of due course.—Any banker paying a cheque crossed
Section 130Cheque bearing “not negotiable”.—A person taking a cheque crossed generally or specially,
Section 131Non-liability of banker receiving payment of cheque.—A banker who has in good faith and
Section 132Set of bills.—Bills of exchange may be drawn in parts, each part being numbered and containing
Section 133Holder of first acquired part entitled to all—As between holders in due course of different parts
Section 134Law governing liability of maker, acceptor or indorser of foreign instrument.—In the absence
Section 135Law of place of payment governs dishonour.—Where a promissory note, bill of exchange or
Section 136Instrument made, etc., out of India, but in accordance with the law of India.
Section 137Presumption as to foreign law.
Section 138Dishonour of cheque for insufficiency, etc., of funds in the account.—Where any cheque
Section 139Presumption in favour of holder.—It shall be presumed, unless the contrary is proved, that the
Section 140Defence which may not be allowed in any prosecution under section 138.—Itshall not be a
Section 141Offences by companies.—(1) If the person committing an offence under section 138 is a
Section 142Cognizance of offences.—1[(1)] Notwithstanding anything contained in the Code of Criminal
Section 143Power of Court to try cases summarily
Section 144Mode of service of summons.—(1) Notwithstanding anything contained in the Code of
Section 145Evidence on affidavit.—(1)Notwithstanding anything contained in the Code of Criminal
Section 146Bank’s slip prima facie evidence of certain facts.—The Court shall, in respect of every
Section 147Offences to be compoundable.—Notwithstanding anything contained in the Code of Criminal
Section 148Power of Appellate Court to order payment pending appeal against conviction.
Section 104AWhen noting equivalent to protest.
Section 131AApplication of Chapter to drafts.
Section 142AValidation for transfer of pending cases
Section 143APower to direct interim compensation
Section 45AHolder's right to duplicate of lost bill
Section 75AExcuse for delay in presentment for acceptance or payment
Section 81AApplication of the Act to electronic cheque and truncated cheque
Section 85ADrafts drawn by one branch of a bank on another payable to order

Recently decided under this act

M/S. B.S. ENTERPRISES, A PARTNERSHIP FIRM v. SRI K. BASAVARAJU @ K. BASAVA28 Aug 2026
M/S. B.S. ENTERPRISES, A PARTNERSHIP FIRM v. SRI K. BASAVARAJU @ K. BASAVA28 Aug 2026
M/S. B.S. ENTERPRISES, A PARTNERSHIP FIRM v. SRI K. BASAVARAJU @ K. BASAVA28 Aug 2026
M/S. B.S. ENTERPRISES, A PARTNERSHIP FIRM v. SRI K. BASAVARAJU @ K. BASAVA28 Aug 2026
M/S. B.S. ENTERPRISES, A PARTNERSHIP FIRM v. SRI K. BASAVARAJU @ K. BASAVA28 Aug 2026
CRM-M No. 36154 of 2026 · Punjab And Haryana High Court · 202610 Jul 2026
RAVINDER KUMAR THR HIS LRS & Anr. v. Mr. Tanuj Sharma, AAG, Haryana10 Jul 2026
RAVINDER KUMAR THR HIS LRS & Anr. v. Mr. Tanuj Sharma, AAG, Haryana10 Jul 2026
RAVINDER KUMAR THR HIS LRS & Anr. v. Mr. Tanuj Sharma, AAG, Haryana10 Jul 2026
Varinder Singh @ Sonu v. State of Punjab & Ors.10 Jul 2026
State of Haryana & Anr. v. Mr. Ramender Singh Chauhan, AAG, Haryana09 Jul 2026
M/S JAI HANUMAN RICE AND GENERAL MILLS & Anr. v. SUMITA JAIN09 Jul 2026