Sections 103 and 104 of Negotiable Instruments Act 1881: Protest for Non-payment and Foreign Bills

Sections 103 and 104 of the Negotiable Instruments Act, 1881 deal with protest in two specific situations: a bill dishonoured by non-acceptance where payment is fixed at another place, and a foreign bill for which the law of the place of drawing requires protest.

Legal context: Sections 99 to 104A of the Negotiable Instruments Act contain the principal provisions on noting and protest. A protest is the formal notarial certificate contemplated by Section 100 following dishonour of a promissory note or bill of exchange.

Section 103 - Protest for Non-payment After Dishonour by Non-acceptance

All bills of exchange drawn payable at some other place than the place mentioned as the residence of the drawee, and which are dishonoured by non-acceptance, may, without further presentment to the drawee, be protested for non-payment in the place specified for payment, unless paid before or at maturity.

Meaning and scope of Section 103

Section 103 applies where a bill of exchange specifies a place of payment different from the place mentioned as the drawee's residence and the bill has been dishonoured by non-acceptance. The section permits protest for non-payment at the specified place of payment without a further presentment to the drawee, unless the bill is paid before or at maturity.

The provision applies to a bill of exchange.
The place specified for payment is different from the place stated as the drawee's residence.
The bill has been dishonoured by non-acceptance.
No further presentment to the drawee is required for the protest contemplated by Section 103.
The bill may be protested for non-payment at the specified place of payment unless paid before or at maturity.

Section 104 - Protest of Foreign Bills

Foreign bills of exchange must be protested for dishonour when such protest is required by the law of the place where they are drawn.

Meaning and scope of Section 104

Section 104 links the requirement to protest a foreign bill to the law of the place where that bill was drawn. If that law requires a protest for dishonour, the foreign bill must be protested accordingly.

The provision is relevant to cross-border bills because the statutory requirement is determined by the law of the place of drawing rather than merely by the fact that the bill has been dishonoured.

Related Provisions on Noting and Protest

Section 99 deals with noting of dishonour by a notary public. Section 100 provides for protest following dishonour. Section 101 prescribes the contents of a protest, and Section 102 deals with notice of protest. Section 104A provides when noting is equivalent to protest for the purposes of the Act.

Practical Legal Significance

Section 103 avoids the need for a further presentment to the drawee in the circumstances expressly stated in the section. Section 104 addresses foreign bills and makes the need for protest dependent upon the law of the place where the bill was drawn. These provisions should therefore be read with the other provisions on dishonour, noting and protest in the Act.

Official Statutory Source

The text of the Negotiable Instruments Act, 1881 can be checked through the Government of India's India Code portal. For statutory or professional use, the current official text and applicable amendments should be verified.