Sections 71 and 72 of the Negotiable Instruments Act, 1881: Presentment and Drawer Liability
Sections 71 and 72 prescribe rules for presenting negotiable instruments for acceptance or payment. Section 71 permits personal presentment where a maker, drawee or acceptor has no known business address or fixed residence. Section 72 concerns presenting a cheque to the drawee bank to preserve the drawer's liability, subject to section 84.
Section 71 - Presentment when maker, etc., has no known place of business or residence
If the maker, drawee or acceptor of a negotiable instrument has no known place of business or fixed residence, and no place is specified in the instrument for presentment for acceptance or payment, such presentment may be made to him in person wherever he can be found.
Meaning: Where both the person's known business address or fixed residence and a designated place of presentment are absent, the holder may present the instrument directly to that person wherever the person is found. This provision avoids making presentment impracticable merely because there is no known address.
The maker is the person who makes a promissory note; the drawee is the person directed to pay a bill or cheque; and the acceptor is a drawee who accepts a bill of exchange. Presentment means producing the instrument for acceptance or payment as required by law.
Section 72 - Presentment of cheque to charge drawer
Subject to the provisions of section 84, a cheque must, in order to charge the drawer, be presented at the bank upon which it is drawn before the relation between the drawer and his banker has been altered to the prejudice of the drawer.
Meaning: The drawer is the person who issues the cheque. To hold the drawer liable under the rules of presentment, the cheque is to be presented to the bank on which it is drawn before a prejudicial change in the drawer-bank relationship occurs. The provision expressly operates subject to section 84.
How section 84 affects delayed cheque presentment
Under section 84(1), if a cheque is not presented within a reasonable time after issue, and the drawer had the right to have it paid when it should have been presented but suffers actual damage because of the delay, the drawer is discharged to the extent of that damage. Delay alone does not automatically discharge the drawer from the entire amount.
Section 84(2) directs consideration of the nature of the instrument, banking and trade usage, and the circumstances of the case in deciding what is a reasonable time. Section 84(3) addresses the holder's corresponding claim against the banker to the extent of the discharge.
Related legal provisions
Sections 68 to 70 govern presentment at specified places and, where no exclusive place is specified, at a business or usual residential address. Section 73 deals with presentment to charge persons other than the drawer, while section 74 concerns instruments payable on demand.
Section 138 separately deals with criminal liability for dishonour of certain cheques issued against legally enforceable debts or liabilities. Its requirements, including cheque validity, statutory demand notice and the opportunity to pay, must be examined independently; sections 71 and 72 do not by themselves establish an offence under section 138.
Official statutory references
Read the Negotiable Instruments Act, 1881 on India Code or the official text of the Act (PDF) for the full statutory provisions and amendments.
Updated: 7 October 2026. This article provides general legal information; the applicable facts, statutory text and judicial interpretation determine individual cases.