The law

The law

Negotiable Instruments Act, 1881: every section

Pundora · Published 3 October 2026

All 155 sections of the Negotiable Instruments Act, 1881, each in the Act's own words.

SectionHeading
1Short title
2[Repealed.]
3Interpretation-clause
4''Promissory note''
5''Bill of exchange''
6''Cheque''
7''Drawer.''
8''Holder''
9''Holder in due course''
10''Payment in due course''
11Inland instrument
12Foreign instrument
13''Negotiable instrument''
14Negotiation
15Indorsement
16Indorsement ''in blank'' and ''in full''
17Ambiguous instruments
18Where amount is stated differently in figures and words
19Instruments payable on demand
20Inchoate stamped instruments
21''At sight''
22''Maturity''
23Calculating maturity of bill or note payable so many months after date or sight
24Calculating maturity of bill or note payable so many days after date or sight
25When day of maturity is a holiday
26Capacity to make, etc., promissory notes, etc
27Agency
28Liability of agent signing
29Liability of legal representative signing
30Liability of drawer
31Liability of drawee of cheque
32Liability of maker of note and acceptor of bill
33Only drawee can be acceptor except in need or for honour
34Acceptance by several drawees not partners
35Liability of indorser
36Liability of prior parties to holder in due course
37Maker, drawer and acceptor principals
38Prior party a principal in respect of each subsequent party
39Suretyship
40Discharge of indorser's liability
41Acceptor bound, although, indorsement forged
42Acceptance of bill drawn in fictitious name
43Negotiable instrument made, etc., without consideration
44Partial absence or failure of money-consideration
45Partial failure of consideration not consisting of money
45AHolder's right to duplicate of lost bill
46Delivery
47Negotiation by delivery
48Negotiation by indorsement
49Conversion of indorsement in blank into indorsement in full
50Effect of indorsement
51Who may negotiate
52Indorser who excludes his own liability or makes it conditional
53Holder deriving title from holder in due course
54Instrument indorsed in blank
55Conversion of indorsement in blank into indorsement in full
56Indorsement for part of sum due
57Legal representative cannot by delivery only negotiate instrument indorsed by deceased
58Instrument obtained by unlawful means or for unlawful consideration
59Instrument acquired after dishonour or when overdue
60Instrument negotiable till payment or satisfaction
61Presentment for acceptance
62Presentment of promissory note for sight
63Drawee's time for deliberation
64Presentment for payment
65Hours for presentment
66Presentment for payment of instrument payable after date or sight
67Presentment for payment of promissory note payable by instalments
68Presentment for payment of instrument payable at specified place and not elsewhere
69Instrument payable at specified place
70Presentment where no exclusive place specified
71Presentment when maker, etc., has no known place of business or residence
72Presentment of cheque to charge drawer
73Presentment of cheque to charge any other person
74Presentment of instrument payable on demand
75Presentment by or to agent, representative of deceased, or assignee of insolvent
75AExcuse for delay in presentment for acceptance or payment
76When presentment unnecessary
77Liability of banker for negligently dealing with bill presented for payment
78To whom payment should be made
79Interest when rate specified
80Interest when no rate specified
81Delivery of instrument on payment or indemnity in case of loss
82Discharge from liability
83Discharge by allowing drawee more than forty-eight hours to accept
84When cheque not duly presented and drawer damaged thereby
85Cheque payable to order
85ADrafts drawn by one branch of a bank on another payable to order
86Parties not consenting discharged by qualified or limited acceptance
87Effect of material alteration
88Acceptor or indorser bound notwithstanding previous alteration
89Payment of instrument on which alteration is not apparent
90Extinguishment of rights of action on bill in acceptor's hands
91Dishonour by non-acceptance
92Dishonour by non-payment
93By and to whom notice should be given
94Mode in which notice may be given
95Party receiving must transmit notice of dishonour
96Agent for presentment
97When party to whom notice given is dead
98When notice of dishonour is unnecessary
99Noting
100Protest
101Contents of protest
102Notice of protest
103Protest for non-payment after dishonour by non-acceptance
104Protest of foreign bills
104AWhen noting equivalent to protest
105Reasonable time
106Reasonable time of giving notice of dishonour
107Reasonable time for transmitting such notice
108Acceptance for honour
109How acceptance for honour must be made
110Acceptance not specifying for whose honour it is made
111Liability of acceptor for honour
112When acceptor for honour may be charged
113Payment for honour
114Right of payer for honour
115Drawee in case of need
116Acceptance and payment without protest
117Rules as to compensation
118Presumptions as to negotiable instruments
119Presumption on proof of protest
120Estoppel against denying original validity of instrument
121Estoppel against denying capacity of payee to indorse
122Estoppel against denying signature or capacity of prior party
123Cheque crossed generally
124Cheque crossed specially
125Crossing after issue
126Payment of cheque crossed generally
127Payment of cheque crossed specially more than once
128Payment in due course of crossed cheque
129Payment of crossed cheque out of due course
130Cheque bearing ''not negotiable''
131Non-liability of banker receiving payment of cheque
131AApplication of Chapter to drafts
132Set of bills
133Holder of first acquired part entitled to
134Law governing liability of maker, acceptor or indorser of foreign instrument
135Law of place of payment governs dishonour
136Instrument made, etc., out of India, but in accordance with the law of India
137Presumption as to foreign law
138Dishonour of cheque for insufficiency, etc., of funds in the account
139Presumption in favour of holder
140Defence which may not be allowed in any prosecution under section 138
141Offences by companies
142Cognizance of offences
142AValidation for transfer of pending cases
143Power of Court to try cases summarily
143APower to direct interim compensation
144Mode of service of summons
145Evidence on affidavit
146Bank's slip prima facie evidence of certain facts
147Offences to be compoundable
148Power of Appellate Court to order payment pending appeal against conviction

Sources

  1. India Code: Negotiable Instruments Act, 1881 (read 1 September 2026)

Every fact on this page carries its source. If one is wrong, write to contact@pundora.in and it will be corrected and dated.