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Negotiable Instruments Act, 1881

[Act No. 26 of Year 1881, dated 9-12-1881]

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:-

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