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NEGOTIABLE INSTRUMENTS ACT 1881

CHAPTER I PRELIMINARY

Section 1 - Short Title : Negotiable Instruments Act 1881

 

 

What is Short Title? Short tile is defined under Section 1 of Negotiable Instruments Act 1881

Section 11 of Negotiable Instruments Act 1881: "Short Title"

This Act may be called the Negotiable Instruments Act, 1881.

Local extent, saving of usage relating to hundis, etc., commencement: It extends to the whole of India ; but nothing herein contained affects the Indian Paper Currency Act, 1871 (3 of 1871), section 21, or affects any local usage relating to any instrument in an oriental language:

PROVIDED that such usages may be excluded by any words in the body of the instrument, which indicate an intention that the legal relations of the parties thereto shall be governed by this Act; and it shall come into force on the first day of March, 1882.

Section 2 of Negotiable Instruments Act 1881: "Repeal of enactments"

[Rep. by the Amending Act, 1891 (12 of 1891), sec. 2 and Sch. I, part I.]

Section 3 of Negotiable Instruments Act 1881: "Interpretation clause"

In this Act-
"Banker" : "banker" includes any person acting as a banker and any post office savings bank.

CHAPTER II NOTES, BILLS AND CHEQUES

Section 4 - Promissory Note

Section 5 - Bill of exchange

Section 6 - Cheque

Section 7 - Drawer, Drawee

Section 8 - Holder

Section 9 - Holder in Due Course

Section 10 - Payment in due Course

Section 11 - Inland Instrument

Section 12 - Foreign Instrument

Section 13 - Negotiable Instrument

Section 14 - Negotiation

Section 15 - Endorsement

Section 16 - Endorsement in blank and in full endorsee

Section 17 - Ambiguous instruments

Section 18 - Where amount is stated differently in figures and words

Section 19 - Instruments payable on demand

Section 20 - Inchoate stamped instruments

Section 21 - At sight, On presentment, After sight

Section 22 - Maturity

Section 23 - Calculating maturity of bill or note payable so many months after date or sight

Section 24 - Calculating maturity of bill or note payable so many days after date or sight

Section 25 - When day of maturity is a holiday

CHAPTER III
PARTIES TO NOTES, BILLS AND CHEQUES

Section 26 - Capacity to make, etc., the promissory notes, etc

Section 27 - Agency

Section 28 - Liability of agent signing

Section 29 - Liability of legal representative signing

Section 30 - Liability of drawer

Section 31 - Liability of drawee of cheque

Section 32 - Liability of maker of note and acceptor of bill

Section 33 - Only drawee can be acceptor except in need or for honour

Section 34 - Acceptance by several drawees not partners

Section 35 - Liability of indorser

Section 36 - Liability of prior parties to holder in due course

Section 37 - Maker, drawer and acceptor principals

Section 38 - Prior party a principal in respect of each subsequent party

Section 39 - Suretyship

Section 40 - Discharge of indorser's liability

Section 41 - Acceptor bound, although, indorsement forged

Section 42 - Acceptance of bill drawn in fictitious name

Section 43 - Negotiable instrument made, etc., without consideration

Section 44 - Partial absence or failure of money-consideration

Section 45 - Partial failure of consideration not consisting of money

Section 45A - Holder's right to duplicate of lost bill

CHAPTER IV
OF NEGOTIATION

Section 46 - Delivery

Section 47 - Negotiation by delivery

Section - 48 Negotiation by indorsement

Section 49 - Conversion of indorsement in blank into indorsement in full

Section 50 - Effect of indorsement

Section 51 - Who may negotiate

Section 52 -Indorser who excludes his own liability or makes it conditional

Section 53 - Holder deriving title from holder in due course

Section 54 - Instrument indorsed in blank

Section 55 - Conversion of indorsement in blank into indorsement in full

Section 56 - Indorsement for part of sum due

Section 57 - Legal representative cannot by delivery only negotiate instrument indorsed by deceased

Section 58 - Instrument obtained by unlawful means or for unlawful consideration

Section 59 - Instrument acquired after dishonour or when overdue

Section 60 - Instrument negotiable till payment or satisfaction

CHAPTER V
OF PRESENTMENT

Section 61 - Presentment for acceptance

Section 62 - Presentment of promissory note for sight

Section 63 - Drawee's time for deliberation

Section 64 - Presentment for payment

Section 65 - Hours for presentment

Section 66 - Presentment for payment of instrument payable after date or sight

Section 67 - Presentment for payment of promissory note payable by installments

Section 68 - Presentment for payment of instrument payable at specified place and not elsewhere

Section 69 - Instrument payable at specified place

Section 70 - Presentment where no exclusive place specified

Section 71 - Presentment when maker, etc., has no known place of business or residence

Section 72 - Presentment of cheque to charge drawer

Section 73 - Presentment of cheque to charge any other person

Section 74 - Presentment of instrument payable on demand

Section 75 - Presentment by or to agent, representative of deceased, or assignee of insolvent

Section 75A - Excuse for delay in presentment for acceptance or payment

Section 76 - When presentment unnecessary

Section 77 - Liability of banker for negligently dealing with bill presented for payment

CHAPTER VI
OF PAYMENT AND INTEREST

Section 78 - To whom payment should be made

Section 79 - Interest when rate specified

Section 80 - Interest when no rate specified

Section 81 - Delivery of instrument on payment, or indemnity in case of loss

CHAPTER VII
OF DISCHARGE FROM LIABILITY ON NOTES, BILLS AND CHEQUES

Section 82 - Discharge from liability

Section 83 - Discharge by allowing drawee more than forty-eight hours to accept

Section 84 - When cheque not duly presented and drawer damaged thereby

Section 85 - Cheque payable to order

Section 85A - Drafts drawn by one branch of a bank on another payable to order

Section 86 - Parties not consenting discharged by qualified or limited acceptance

Section 87 - Effect of material alteration

Section 88 - Acceptor or indorser bound notwithstanding previous alteration

Section 89 - Payment of instrument on which alteration is not apparent

Section 90 - Extinguishment of rights of action on bill in acceptor's hands

CHAPTER VIII
OF NOTICE OF DISHONOUR

Section 91 - Dishonour by non-acceptance

Section 92 - Dishonour by non-payment

Section 93 - By and to whom notice should be given

Section 94 - Mode in which notice may be given

Section 95 - Party receiving must transmit notice of dishonour

Section 96 - Agent for presentment

Section 97 - When party to whom notice given is dead

Section 98 - When notice of dishonour is unnecessary

CHAPTER IX
OF NOTING AND PROTEST

Section 99 - Noting

Section 100 - Protest

Section 101 - Contents of protest

Section 102 - Notice of protest

Section 103 - Protest for non-payment after dishonour by non-acceptance

Section 104 - Protest of foreign bills

Section 104A - When noting equivalent to protest

CHAPTER X
OF REASONABLE TIME

Section 105 - Reasonable time

Section 106 - Reasonable time of giving notice of dishonour

Section 107 - Reasonable time for transmitting such notice

CHAPTER XI
OF ACCEPTANCE AND PAYMENT FOR HONOUR AND REFERENCE IN CASE OF NEED

Section 108 - Acceptance for honour

Section 109 - How acceptance for honour must be made

Section 110 - Acceptance not specifying for whose honour it is made

Section 111 - Liability of acceptor for honour

Section 112 - When acceptor for honour may be charged

Section 113 - Payment for honour

Section 114 - Right of payer for honour

Section 115 - Drawee in case of need

Section 116 - Acceptance and payment without protest

CHAPTER XII
OF COMPENSATION

Section 117 - Rules as to compensation

CHAPTER XIII
SPECIAL RULES OF EVIDENCE

Section 118 - Presumptions as to negotiable instruments

Section 119 - Presumption on proof of protest

Section 120 - Estoppel against denying original validity of instrument

Section 121 - Estoppel against denying capacity of payee to indorse

Section 122 - Estoppel against denying signature or capacity of prior party

CHAPTER XIV
OF CROSSED CHEQUES

Section 123 - Cheque crossed generally

Section 124 - Cheque crossed specially

Section 125 - Crossing after issue

Section 126 - Payment of cheque crossed generally

Section 127 - Payment of cheque crossed specially more than once

Section 128 - Payment in due course of crossed cheque

Section 129 - Payment of crossed cheque out of due course

Section 130 - Cheque bearing not negotiable

Section 131 - Non-liability of banker receiving payment of cheque

Section 131A - Application of Chapter to drafts

CHAPTER XV
OF BILLS IN SETS

Section 132 - Set of bills

Section 133 - Holder of first acquired part entitled to all

CHAPTER XVI
OF INTERNATIONAL LAW

Section 134 - Law governing liability of maker, acceptor or indorser of foreign instrument

Section 135 - Law of place of payment governs dishonour

Section 136 - Instrument made, etc., out of India, but in accordance with the law of India

Section 137 - Presumption as to Foreign Law

CHAPTER XVII
OF PENALTIES IN CASE OF DISHONOUR OF CERTAIN CHEQUES FOR INSUFFICIENCY OF FUNDS IN THE ACCOUNTS

Section 138 - Dishonour of cheque for insufficiency, etc., of funds in the account

Section 139 - Presumption in favour of holder

Section 140 - Defence which may not be allowed in any prosecution under section 138

Section 141 - Offences by companies

Section 142 - Cognizance of offences

Section 143 - Power of Court to try cases summarily

Section 144 - Mode of service of summons

Section 145 - Evidence on affidavit

Section 146 - Bank's slip prima facie evidence of certain facts

Section 147 - Offences to be compoundable

 
 

 

 

 

 

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