Section 92 - Dishonour by non-payment

Section 93 - By and to whom notice should be given : Negotiable Instruments Act 1881

What is Dishonour by non-payment? By and to whom notice should be given? Dishonour by non-payment and By and to whom notice should be given are defined under Section 92 and 93 of Negotiable Instruments Act 1881

 

 

Section 92 of Negotiable Instruments Act 1881: "Dishonour by non-payment"

A promissory note, bill of exchange or cheque is said to be dishonoured by non-payment when the maker of the note, acceptor of the bill or drawee of the cheque makes default in payment upon being duly required to pay the same.

 

Section 93 of Negotiable Instruments Act 1881: "By and to whom notice should be given"

When a promissory note, bill of exchange or cheque is dishonoured by non- acceptance or non-payment, the holder thereof, or some party thereto, who remains liable thereon, must give notice that the instrument has been so dishonoured to all other parties whom the holder seeks to make severally liable thereon, and to some one of several parties whom he seeks to make jointly liable thereon.

Nothing in this section renders it necessary to give notice to the maker of the dishonoured promissory note or the drawee or acceptor of the dishonoured bill of exchange or cheque.

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