Negotiable Instruments Act 1881 / Chapter V - Of Presentment / Sections 61 and 62

Section 61 and Section 62 of Negotiable Instruments Act 1881: Presentment for Acceptance and Sight

Sections 61 and 62 of the Negotiable Instruments Act, 1881 begin Chapter V on presentment. Section 61 governs presentment of a bill of exchange payable after sight for acceptance. Section 62 governs presentment of a promissory note payable at a certain period after sight to its maker for sight.

Official law source: For the authoritative and updated central legislation, refer to India Code - Negotiable Instruments Act, 1881.

Section 61 - Presentment for acceptance

Statutory provision:

A bill of exchange payable after sight must, if no time or place is specified therein for presentment, be presented to the drawee thereof for acceptance, if he can, after reasonable search, be found, by a person entitled to demand acceptance, within a reasonable time after it is drawn, and in business hours on a business day. In default of such presentment, no party thereto is liable thereon to the person making such default. If the drawee cannot, after reasonable search, be found, the bill is dishonoured.

If the bill is directed to the drawee at a particular place, it must be presented at that place; and if at the due date for presentment he cannot, after reasonable search, be found there, the bill is dishonoured.

Where authorized by agreement or usage, a presentment through the post office by means of a registered letter is sufficient.

Meaning of presentment for acceptance

Presentment for acceptance is the formal presentation of a bill of exchange to the drawee so that the drawee may accept it. Under Section 7, the person directed by the maker of a bill of exchange to pay it is called the drawee. After the drawee signs assent upon the bill and delivers it or gives notice of the signing to the holder or another person on the holder's behalf, the drawee becomes the acceptor.

Requirements under Section 61

For a bill payable after sight, where the instrument itself does not specify a time or place for presentment, Section 61 requires presentment by a person entitled to demand acceptance, within a reasonable time after the bill is drawn, during business hours on a business day, and to the drawee if the drawee can be found after reasonable search.

If the bill directs presentment to the drawee at a particular place, presentment must be made there. The section also recognizes presentment by registered post where this method is authorized by agreement or usage.

Effect of default: The section expressly provides that, where the required presentment is not made, no party to the bill is liable on it to the person making that default. Where the drawee cannot be found after the reasonable search contemplated by the provision, the bill is dishonoured.

Section 62 - Presentment of promissory note for sight

Statutory provision:

A promissory note, payable at a certain period after sight, must be presented to the maker thereof for sight (if he can after reasonable search be found) by a person entitled to demand payment, within a reasonable time after it is made and in business hours on a business day. In default of such presentment, no party thereto is liable thereon to the person making such default.

Meaning and effect of Section 62

Section 62 applies specifically to a promissory note payable at a certain period after sight. Such a note must be presented to its maker for sight so that the relevant period can operate in accordance with the terms of the instrument and the Act.

The presentment must be made by a person entitled to demand payment, within a reasonable time after the note is made, and during business hours on a business day. The maker must be presented with the note if the maker can be found after reasonable search.

Consequence of non-presentment: If the person responsible for presentment defaults in complying with Section 62, no party to the note is liable on it to that person.

Section 61 and Section 62 compared

Provision	Instrument	Presentment
Section 61	Bill of exchange payable after sight	Presented to the drawee for acceptance, subject to the conditions stated in the section.
Section 62	Promissory note payable at a certain period after sight	Presented to the maker for sight, subject to the conditions stated in the section.

Related provisions on presentment

Chapter V continues with Section 63 on the drawee's time for deliberation, Section 64 on presentment for payment, Sections 65 to 74 on the time, place and circumstances of presentment, Section 75 on presentment by or to specified representatives, Section 75A on excuse for delay, Section 76 on when presentment is unnecessary, and Section 77 on a banker's liability for negligently dealing with a bill presented for payment.

This article explains the statutory provisions for general legal information. For authoritative wording, amendments and legislative status, refer to the official India Code source linked above.