Negotiable Instruments Act, 1881
परक्राम्य लिखत अधिनियम, 1881
Promissory notes, bills of exchange and cheques, and the offence of cheque dishonour (Section 138).
- 154 sections
- 17 chapters
- Act No. 26 of 1881
Chapters and sections
1PreliminarySections 1 to 3
2Of notes, bills and chequesSections 4 to 25
- 4“Promissory note”
- 5“Bill of exchange”
- 6“Cheque”
- 7“Drawer”, “Drawee”
- 8“Holder”
- 9“Holder in due course”
- 10“Payment in due course”
- 11Inland instrument
- 12Foreign instrument
- 13“Negotiable instrument”
- 14Negotiation
- 15Indorsement
- 16Indorsement “in blank” and “in full”
- 17Ambiguous instruments
- 18Where amount is stated differently in figures and words
- 19Instruments payable on demand
- 20Inchoate stamped instruments
- 21“At sight” —“On presentment”
- 22“Maturity”
- 23Calculating maturity of bill or note payable so many months after date or sight
- 24Calculating maturity of bill or note payable so many days after date or sight
- 25When day of maturity is a holiday
3Parties to notes, bills and chequesSections 26 to 45A
- 26Capacity to make, etc., promissory notes, etc
- 27Agency
- 28Liability of agent signing
- 29Liability of legal representative signing
- 30Liability of drawer
- 31Liability of drawee of cheque
- 32Liability of maker of note and acceptor of bill
- 33Only drawee can be acceptor except in need or for honour
- 34Acceptance by several drawees not partners
- 35Liability of indorser
- 36Liability of prior parties to holder in due course
- 37Maker, drawer and acceptor principals
- 38Prior party a principal in respect of each subsequent party
- 39Surety ship
- 40Discharge of indorser’s liability
- 41Acceptor bound, although indorsement forged
- 42Acceptance of bill drawn in fictitious name
- 43Negotiable instrument made, etc., without consideration
- 44Partial absence or failure of money-consideration
- 45Partial failure of consideration not consisting of money
- 45AHolder’s right to duplicate of lost bill
4Of negotiationSections 46 to 60
- 46Delivery
- 47Negotiation by delivery
- 48Negotiation by indorsement
- 49Conversion of indorsement in blank into indorsement in full
- 50Effect of indorsement
- 51Who may negotiate
- 52Indorser who excludes his own liability or makes it conditional
- 53Holder deriving title from holder in due course
- 54Instrument indorsed in blank
- 55Conversion of indorsement in blank into indorsement in full
- 56Indorsement for part of sum due
- 57Legal representative cannot by delivery only negotiate instrument indorsed by deceased
- 58Instrument obtained by unlawful means or for unlawful consideration
- 59Instrument acquired after dishonour or when overdue
- 60Instrument negotiable till payment or satisfaction
5Of presentmentSections 61 to 77
- 61Presentment for acceptance
- 62Presentment of promissory note for sight
- 63Drawee’s time for deliberation
- 64Presentment for payment
- 65Hours for presentment
- 66Presentment for payment of instrument payable after date or sight
- 67Presentment for payment of promissory note payable by instalments
- 68Presentment for payment of instrument payable at specified place and not elsewhere
- 69Instrument payable at specified place
- 70Presentment where no exclusive place specified
- 71Presentment when maker, etc., has no known place of business or residence
- 72Presentment of cheque to charge drawer
- 73Presentment of cheque to charge any other person
- 74Presentment of instrument payable on demand
- 75Presentment by or to agent, representative of deceased, or assignee of insolvent
- 75AExcuse for delay in presentment for acceptance or payment
- 76When presentment unnecessary
- 77Liability of banker for negligently dealing with bill presented for payment
6Of payment and interestSections 78 to 81
7Of discharge from liability on notes, bills and chequesSections 82 to 90
- 82Discharge from liability
- 83Discharge by allowing drawee more than forty-eight hours to accept
- 84When cheque not duly presented and drawer damaged thereby
- 85Cheque payable to order
- 85ADrafts drawn by one branch of a bank on another payable to order
- 86Parties not consenting discharged by qualified or limited acceptance
- 87Effect of material alteration
- 88Acceptor or indorser bound notwithstanding previous alteration
- 89Payment of instrument on which alteration is not apparent
- 90Extinguishment of rights of action on bill in acceptors’ hands
8Of notice of dishonourSections 91 to 98
10Of reasonable timeSections 105 to 107
11Of acceptance and payment for honour and reference in case of needSections 108 to 116
- 108Acceptance for honour
- 109How acceptance for honour must be made
- 110Acceptance not specifying for whose honour it is made
- 111Liability of acceptor for honour
- 112When acceptor for honour may be charged
- 113Payment for honour
- 114Right of payer for honour
- 115Drawee in case of need
- 116Acceptance and payment without protest
12Of compensationSection 117
13Special rules of evidenceSections 118 to 122
14Of crossed chequesSections 123 to 131A
- 123Cheque crossed generally
- 124Cheque crossed specially
- 125Crossing after issue
- 126Payment of cheque crossed generally
- 127Payment of cheque crossed specially more than once
- 128Payment in due course of crossed cheque
- 129Payment of crossed cheque out of due course
- 130Cheque bearing “not negotiable”
- 131Non-liability of banker receiving payment of cheque
- 131AApplication of Chapter to drafts
15Of bills in setsSections 132 to 133
17Of penalties in case of dishonour of certain cheques for insufficiency of funds in the accountsSections 138 to 148
- 138Dishonour of cheque for insufficiency, etc., of funds in the account
- 139Presumption in favour of holder
- 140Defence which may not be allowed in any prosecution under section 138
- 141Offences by companies
- 142Cognizance of offences
- 142AValidation for transfer of pending cases
- 143Power of Court to try cases summarily
- 143APower to direct interim compensation
- 144Mode of service of summons
- 145Evidence on affidavit
- 146Bank’s slip prima facie evidence of certain facts
- 147Offences to be compoundable
- 148Power of Appellate Court to order payment pending appeal against conviction
Text: the updated official English text on India Code, with later amendments (through the open-laws dataset). Legaflix is checking it against the official copy; amendment notes and Schedules are not added yet.
Other laws on this subject
- Narcotic Drugs and Psychotropic Substances Act, 1985128 sections
- Protection of Children from Sexual Offences Act, 201247 sections
- Scheduled Castes and the Scheduled Tribes (Prevention of Atrocities) Act, 198926 sections
- Dowry Prohibition Act, 196112 sections
- Arms Act, 195948 sections
- Protection of Women from Domestic Violence Act, 200537 sections