VidhiSangh

Bare Act · 154 sections

Negotiable Instruments Act, 1881 (Negotiable Instruments)

Chapter I — Preliminary

  1. 1. Short title
  2. 3. Interpretation-clause

Chapter II — Of Notes, Bills and Cheques

  1. 4. “Promissory note.”
  2. 5. “Bill of exchange.”
  3. 6. “Cheque.”
  4. 7. “Drawer” “Drawee”
  5. 8. “Holder”
  6. 9. “Holder in due course”
  7. 10. “Payment in due course”
  8. 11. Inland instrument
  9. 12. Foreign instrument
  10. 13. “Negotiable instrument”
  11. 14. Negotiation
  12. 15. Indorsement
  13. 16. Indorsement “in blank” and “in full”
  14. 17. Ambiguous instruments
  15. 18. Where amount is stated differently in figures and words
  16. 19. Instruments payable on demand
  17. 20. Inchoate stamped instruments
  18. 21. “At sight”
  19. 22. “Maturity”
  20. 23. Calculating maturity of bill or note payable so many months after date or sight
  21. 24. Calculating maturity of bill or note payable so many days after date or sight
  22. 25. When day of maturity is a holiday

Chapter III — Parties to Notes, Bills and Cheques

  1. 26. Capacity to make, etc., promissory notes, etc
  2. 27. Agency
  3. 28. Liability of agent signing
  4. 29. Liability of legal representative signing
  5. 30. Liability of drawer
  6. 31. Liability of drawee of cheque
  7. 32. Liability of maker of note and acceptor of bill
  8. 33. Only drawee can be acceptor except in need or for honour
  9. 34. Acceptance by several drawees not partners
  10. 35. Liability of indorser
  11. 36. Liability of prior parties to holder in due course
  12. 37. Maker, drawer and acceptor principals
  13. 38. Prior party a principal in respect of each subsequent party
  14. 39. Suretyship
  15. 40. Discharge of indorser's liability
  16. 41. Acceptor bound, although, indorsement forged
  17. 42. Acceptance of bill drawn in fictitious name
  18. 43. Negotiable instrument made, etc., without consideration
  19. 44. Partial absence or failure of money-consideration
  20. 45. Partial failure of consideration not consisting of money
  21. 45A. Holder's right to duplicate of lost bill

Chapter IV — Of Negotiation

  1. 46. Delivery
  2. 47. Negotiation by delivery
  3. 48. Negotiation by indorsement
  4. 49. Conversion of indorsement in blank into indorsement in full
  5. 50. Effect of indorsement
  6. 51. Who may negotiate
  7. 52. Indorser who excludes his own liability or makes it conditional
  8. 53. Holder deriving title from holder in due course
  9. 54. Instrument indorsed in blank
  10. 55. Conversion of indorsement in blank into indorsement in full
  11. 56. Indorsement for part of sum due
  12. 57. Legal representative cannot by delivery only negotiate instrument indorsed by deceased
  13. 58. Instrument obtained by unlawful means or for unlawful consideration
  14. 59. Instrument acquired after dishonour or when overdue
  15. 60. Instrument negotiable till payment or satisfaction

Chapter V — Of Presentment

  1. 61. Presentment for acceptance
  2. 62. Presentment of promissory note for sight
  3. 63. Drawee’s time for deliberation
  4. 64. Presentment for payment
  5. 65. Hours for presentment
  6. 66. Presentment for payment of instrument payable after date or sight
  7. 67. Presentment for payment of promissory note payable by instalments
  8. 68. Presentment for payment of instrument payable at specified place and not elsewhere
  9. 69. Instrument payable at specified place
  10. 70. Presentment where no exclusive place specified
  11. 71. Presentment when maker, etc., has no known place of business or residence
  12. 72. Presentment of cheque to charge drawer
  13. 73. Presentment of cheque to charge any other person
  14. 74. Presentment of instrument payable on demand
  15. 75. Presentment by or to agent, representative of deceased, or assignee of insolvent
  16. 75A. Excuse for delay in presentment for acceptance or payment
  17. 76. When presentment unnecessary
  18. 77. Liability of banker for negligently dealing with bill presented for payment

Chapter VI — Of Payment and Interest

  1. 78. To whom payment should be made
  2. 79. Interest when rate specified
  3. 80. Interest when no rate specified
  4. 81. Delivery of instrument on payment or indemnity in case of loss

Chapter VII — Of Discharge from Liability on Notes, Bills and Cheques

  1. 82. Discharge from liability
  2. 83. Discharge by allowing drawee more than forty-eight hours to accept
  3. 84. When cheque not duly presented and drawer damaged thereby
  4. 85. Cheque payable to order
  5. 85A. Drafts drawn by one branch of a bank on another payable to order
  6. 86. Parties not consenting discharged by qualified or limited acceptance
  7. 87. Effect of material alteration
  8. 88. Acceptor or indorser bound notwithstanding previous alteration
  9. 89. Payment of instrument on which alteration is not apparent
  10. 90. Extinguishment of rights of action on bill in acceptor's hands

Chapter VIII — Of Notice of Dishonour

  1. 91. Dishonour by non-acceptance
  2. 92. Dishonour by non-payment
  3. 93. By and to whom notice should be given
  4. 94. Mode in which notice may be given
  5. 95. Party receiving must transmit notice of dishonour
  6. 96. Agent for presentment
  7. 97. When party to whom notice given is dead
  8. 98. When notice of dishonour is unnecessary

Chapter IX — Of Noting and Protest

  1. 99. Noting
  2. 100. Protest
  3. 101. Contents of protest
  4. 102. Notice of protest
  5. 103. Protest for non-payment after dishonour by non-acceptance
  6. 104. Protest of foreign bills
  7. 104A. When noting equivalent to protest

Chapter X — Of Reasonable Time

  1. 105. Reasonable time
  2. 106. Reasonable time of giving notice of dishonour
  3. 107. Reasonable time for transmitting such notice

Chapter XI — Of Acceptance and Payment for Honour and Reference in Case of Need

  1. 108. Acceptance for honour
  2. 109. How acceptance for honour must be made
  3. 110. Acceptance not specifying for whose honour it is made
  4. 111. Liability of acceptor for honour
  5. 112. When acceptor for honour may be charged
  6. 113. Payment for honour
  7. 114. Right of payer for honour
  8. 115. Drawee in case of need
  9. 116. Acceptance and payment without protest

Chapter XII — Of Compensation

  1. 117. Rules as to compensation

Chapter XIII — Special Rules of Evidence

  1. 118. Presumptions as to negotiable instruments
  2. 119. Presumption on proof of protest
  3. 120. Estoppel against denying original validity of instrument
  4. 121. Estoppel against denying capacity of payee to indorse
  5. 122. Estoppel against denying signature or capacity of prior party

Chapter XIV — Of Crossed Cheques

  1. 123. Cheque crossed generally
  2. 124. Cheque crossed specially
  3. 125. Crossing after issue
  4. 126. Payment of cheque crossed generally
  5. 127. Payment of cheque crossed specially more than once
  6. 128. Payment in due course of crossed cheque
  7. 129. Payment of crossed cheque out of due course
  8. 130. Cheque bearing “not negotiable”
  9. 131. Non-liability of banker receiving payment of cheque
  10. 131A. Application of Chapter to drafts

Chapter XV — Of Bills in Sets

  1. 132. Set of bills
  2. 133. Holder of first acquired part entitled to all

Chapter XVI — Of International Law

  1. 134. Law governing liability of maker, acceptor or indorser of foreign instrument
  2. 135. Law of place of payment governs dishonour
  3. 136. Instrument made, etc., out of India, but in accordance with the law of India
  4. 137. Presumption as to foreign law

Chapter XVII — Of Penalties in Case of Dishonour of Certain Cheques for Insufficiency of Funds in the Accounts

  1. 138. Dishonour of cheque for insufficiency, etc., of funds in the account
  2. 139. Presumption in favour of holder
  3. 140. Defence which may not be allowed in any prosecution under section 138
  4. 141. Offences by companies
  5. 142. Cognizance of offences
  6. 142A. Validation for transfer of pending cases
  7. 143. Power of Court to try cases summarily
  8. 143A. Power to direct interim compensation
  9. 144. Mode of service of summons
  10. 145. Evidence on affidavit
  11. 146. Bank’s slip prima facie evidence of certain facts
  12. 147. Offences to be compoundable
  13. 148. Power of Appellate Court to order payment pending appeal against conviction

Source: official text.