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:-