THE NEGOTIABLE INSTRUMENTS ACT

Edition: 25th edn., Reprint 2025

ISBN: 978-81-7737-293-9

Pages: 1488

Author: Bhashyam & Adiga Revised by Anand Sanjay M. Nuli • Saket Gogia

CHAPTER I

Preliminary

Section Page No.

1 Short title, local extent, saving of usages relating to hundis, etc. Commencement

2 Repeal of enactments (Repealed)

3 Interpretation clause "Banker"

CHAPTER II

Of notes, bills and cheques

4 "Promissory note"

5 "Bill of Exchange"

6 "Cheque"

7 "Drawer", "Drawee", "Drawee in case of need", "Acceptor", "Acceptor for honour", "Payee"

8 "Holder"

9 "Holder in due course"

10 "Payment in due course"

11 Inland instrument

12 Foreign instrument

13 Negotiable instrument

14 Negotiation

15 Indorsement

16 Indorsement "in blank" and "in full", "indorsee"

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" Days of grace

Section Pa

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 honour

34 Acceptance by several drawees not partners

35 Liability of indorser

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 indorser's liability

41 Acceptor bound although indorsement 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

Of Negotiation

46 Delivery

47 Negotiation by delivery

48 Negotiation by indorsement

49 Conversion of indorsement in blank into indorsement in full

50 Effect of indorsement

51 Who may negotiate

52 Indorser who excludes his own liability or makes it conditional

53 Holder deriving title from holder in due course

54 Instrument indorsed in blank

55 Conversion of indorsement in blank into indorsement in full

56 Indorsement for part of sum due

57 Legal representative cannot by delivery only negotiate instrument indorsed by deceased

58 Instrument obtained by unlawful means or for unlawful consideration

59 Instrument acquired after dishonour or when overdue, Accommodation note or bill

60 Instrument negotiable till payment or satisfaction

CHAPTER V

Of 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 instalments

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 on demand

75 Presentment by or to agent, representative of deceased or assignee of insolvent

75A Excuse for delay in presentment for acceptance or payment

76 When presentment unnecessary

77 Liability of banker for negligently dealing with bill presented for payment

CHAPTER VI

Of 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 

Of discharge from liability on Notes, Bills and Chequ

82 Discharge from liability — (a) by cancellation; (b) by release; (c) by payment

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 Effect of material alteration, Alteration by indorsee

88 Acceptor or indorser 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

Of Notice of Dishonour 

91 Dishonour by non-acceptance

92 Dishonour 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 dishonour

96 Agent for presentment

97 When party to whom notice given is dead

98 When notice of dishonour is unnecessary

CHAPTER IX

Of Noting an