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The Negotiable Instruments Act, 1881

1881 · Ministry of Finance · In force · synced 04 Jul 2026
1.Short title2.[Repeal of enactments.]3.Interpretation-clause
II
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 instrument12.Foreign instrument14.Negotiation15.Indorsement16.Indorsement “in blank” and “in full”17.Ambiguous instruments18.Where amount is stated differently in figures and words19.Instruments payable on demand20.Inchoate stamped instruments21.“At sight”22.“Maturity”23.Calculating maturity of bill or note payable so many months after date or sight24.Calculating maturity of bill or note payable so many days after date or sight25.When day of maturity is a holiday
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26.Capacity to make, etc., promissory notes, etc27.Agency28.Liability of agent signing29.Liability of legal representative signing30.Liability of drawer31.Liability of drawee of cheque32.Liability of maker of note and acceptor of bill33.Only drawee can be acceptor except in need or for honour34.Acceptance by several drawees not partners35.Liability of indorser36.Liability of prior parties to holder in due course37.Maker, drawer and acceptor principals38.Prior party a principal in respect of each subsequent party39.Suretyship40.Discharge of indorser's liability41.Acceptor bound, although, indorsement forged42.Acceptance of bill drawn in fictitious name43.Negotiable instrument made, etc., without consideration44.Partial absence or failure of money-consideration45.Partial failure of consideration not consisting of money45A.Holder's right to duplicate of lost bill
IV — OF NEGOTIATION
46.Delivery47.Negotiation by delivery48.Negotiation by indorsement49.Conversion of indorsement in blank into indorsement in full50.Effect of indorsement51.Who may negotiate52.Indorser who excludes his own liability or makes it conditional53.Holder deriving title from holder in due course54.Instrument indorsed in blank55.Conversion of indorsement in blank into indorsement in full56.Indorsement for part of sum due57.Legal representative cannot by delivery only negotiate instrument indorsed by deceased58.Instrument obtained by unlawful means or for unlawful consideration59.Instrument acquired after dishonour or when overdue60.Instrument negotiable till payment or satisfaction
V — OF PRESENTMENT
61.Presentment for acceptance62.Presentment of promissory note for sight63.Drawee’s time for deliberation64.Presentment for payment65.Hours for presentment66.Presentment for payment of instrument payable after date or sight67.Presentment for payment of promissory note payable by instalments68.Presentment for payment of instrument payable at specified place and not elsewhere69.Instrument payable at specified place70.Presentment where no exclusive place specified71.Presentment when maker, etc., has no known place of business or residence72.Presentment of cheque to charge drawer73.Presentment of cheque to charge any other person74.Presentment of instrument payable on demand75.Presentment by or to agent, representative of deceased, or assignee of insolvent75A.Excuse for delay in presentment for acceptance or payment76.When presentment unnecessary77.Liability of banker for negligently dealing with bill presented for payment
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78.To whom payment should be made79.Interest when rate specified80.Interest when no rate specified81.Delivery of instrument on payment or indemnity in case of loss
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82.Discharge from liability83.Discharge by allowing drawee more than forty-eight hours to accept84.When cheque not duly presented and drawer damaged thereby85.Cheque payable to order85A.Drafts drawn by one branch of a bank on another payable to order86.Parties not consenting discharged by qualified or limited acceptance87.Effect of material alteration88.Acceptor or indorser bound notwithstanding previous alteration89.Payment of instrument on which alteration is not apparent90.Extinguishment of rights of action on bill in acceptor's hands
VIII — OF NOTICE OF DISHONOUR
91.Dishonour by non-acceptance92.Dishonour by non-payment93.By and to whom notice should be given94.Mode in which notice may be given95.Party receiving must transmit notice of dishonour96.Agent for presentment97.When party to whom notice given is dead98.When notice of dishonour is unnecessary
IX — O F NOTING AND PROTEST
99.Noting100.Protest101.Contents of protest102.Notice of protest103.Protest for non-payment after dishonour by non-acceptance104.Protest of foreign bills104A.When noting equivalent to protest
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105.Reasonable time106.Reasonable time of giving notice of dishonour107.Reasonable time for transmitting such notice
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108.Acceptance for honour109.How acceptance for honour must be made110.Acceptance not specifying for whose honour it is made111.Liability of acceptor for honour112.When acceptor for honour may be charged113.Payment for honour114.Right of payer for honour115.Drawee in case of need116.Acceptance and payment without protest
XII — OF COMPENSATION
117.Rules as to compensation
XIII — SPECIAL RULES OF EVIDENCE
118.Presumptions as to negotiable instruments119.Presumption on proof of protest120.Estoppel against denying original validity of instrument121.Estoppel against denying capacity of payee to indorse122.Estoppel against denying signature or capacity of prior party
XIV — OF CROSSED CHEQUES
123.Cheque crossed generally124.Cheque crossed specially125.Crossing after issue126.Payment of cheque crossed generally127.Payment of cheque crossed specially more than once128.Payment in due course of crossed cheque129.Payment of crossed cheque out of due course130.Cheque bearing “not negotiable”131.Non-liability of banker receiving payment of cheque131A.Application of Chapter to drafts
XIV
132.Set of bills133.Holder of first acquired part entitled to all
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134.Law governing liability of maker, acceptor or indorser of foreign instrument135.Law of place of payment governs dishonour136.Instrument made, etc., out of India, but in accordance with the law of India137.Presumption as to foreign law138.Dishonour of cheque for insufficiency, etc., of funds in the account139.Presumption in favour of holder140.Defence which may not be allowed in any prosecution under section 138141.Offences by companies142.Cognizance of offences142A.Validation for transfer of pending cases143.Power of Court to try cases summarily143A.Power to direct interim compensation144.Mode of service of summons145.Evidence on affidavit146.Bank’s slip prima facie evidence of certain facts147.Offences to be compoundable148.Power of Appellate Court to order payment pending appeal against conviction
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