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The Negotiable Instruments Act, 1881

Central

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

Act number
26 of 1881
Ministry
Ministry of Finance
Department
Department of Financial Services
Enacted
9 Dec 1881
In force from
1 Mar 1882

Source: IndiaCode Portal, Legislative Department, Ministry of Law and Justice, Government of India. Open on India Code Check against the official text before relying on it.

155 sections

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 Section 2[Repealed.].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