NEGOTIABLE INSTRUMENTS ACT, 1881

 

SECTION

 

PRELIMINARY

 

1.         Short title

2.         **                                                         **                                                         **

3.         Interpretation clause

 

OF NOTES, BILLS AND CHEQUES

 

4.         "Promissory note"

5.         "Bill of exchange"

6.'         "Cheque"

7.         "Drawer", "Drawee"

8.         "Holder"

9.         "Holder in due course"

10.        "Payment in due course"

11.        "Inland instrument"

12.        "Foreign instrument"

13.        "Negotiable instrument"

14.        Negotiation

15.        Indorsement

16.        Indorsement "in blank" and "in full"

17.        Ambiguous instruments

18.        Where amount is stated differently in figures and words

19.        Instruments payable on demand

20.        Inchoate stamped instruments

21.        "At sight", "On presentment", "After sight"

22.        "Maturity"

23.        Calculating maturity of bill or note payable so many months after date or sight

24.        Calculating maturity of bill or note payable so many days after date or sight

25.        When day of maturity is a holiday

 

PARTIES TO NOTES, BILLS AND CHEQUES

 

26.        Capacity to make, etc., the promissory notes, etc.

27.        Agency

28.        Liability of agent signing

29.        Liability of legal representative signing

30.        Liability of drawer

31.        Liability of drawee of cheque

32.        Liability of maker of note and acceptor of bill

33.        Only drawee can be acceptor except in need or for honour

34.        Acceptance by several drawees not partners

35.        Liability of indorser

36.        Liability of prior parties to holder in due course

37.        Maker, drawer and acceptor principals

38.        Prior party a principal in respect of each subsequent party

39.        Surety ship

40.        Discharge of indorser's liability

41.        Acceptor bound although indorsement forged

42.        Acceptance of bill drawn in fictitious name

43.        Negotiable instrument made, etc., without consideration

44.        Partial absence or failure of money‑consideration

45.        Partial failure of consideration not consisting of money

45A.     Holder's right to duplicate of lost bill

 

OF NEGOTIATION

 

46.        Delivery

47.        Negotiation by delivery

48.        Negotiation by indorsement

49.        Conversion of indorsement in blank into indorsement in full

50.        Effect of indorsement

51.        Who may negotiate

52.        Indorser who excludes his own liability or makes it conditional

53.        Holder deriving title from holder in due course

54.        Instrument indorsed in blank

55.        Conversion of indorsement in blank into indorsement in full

56.        Indorsement for part of sum due

57.        Legal representative cannot by delivery only negotiate instru­ment indorsed by deceased

58.        Instrument obtained by unlawful means or for unlawful con­sideration

59.        Instrument acquired after dishonour or when overdue

60.        Instrument negotiable till payment or satisfaction

 

OF PRESENTMENT

 

61.        Presentment for acceptance

62.        Presentment of promissory note for sight

63.        Drawee's time for deliberation

64.        Presentment for payment

65.        Hours for presentment

66.        Presentment for payment of instrument payable after date or sight

67.        Presentment for payment of promissory note payable by instalments

68.        Presentment for payment of instrument payable at specified place and not elsewhere

69.        Instrument payable at specified place

70.        Presentment where no exclusive place specified

71.        Presentment when maker, etc., has no known place of business or residence

72.        Presentment of cheque to charge drawer

73.        Presentment of cheque to charge any other person

74.        Presentment of instrument payable on demand

75.        Presentment by or to agent, representative of deceased, or assignee of insolvent

75A.     Excuse for delay in presentment for acceptance or payment

76.        When presentment unnecessary

77.        Liability of banker for negligently dealing with bill presented for payment

 

OF PAYMENT AND INTEREST

 

78.        To whom payment should be made

79.        Interest when rate specified

80.        Interest when no rate specified

81.        Delivery of instrument on payment or indemnity in case of loss

 

OF DISCHARGE FROM LIABILITY ON NOTES, BILLS AND CHEQUES

 

82.        Discharge from liability

83.        Discharge by allowing drawee more than forty‑eight hours to accept

84.        When   cheque not duly presented and drawer damaged thereby

85.        Cheque payable to order

85A.     Drafts drawn by one branch of a bank on another payable to order

86.        Parties not consenting discharged by qualified or limited acceptance

87.        Effect of material alteration

88.        Acceptor or indorser bound notwithstanding previous alteration

89.        Payment of instrument on which alteration is not apparent

90.        Extinguishment of rights of action on bill in acceptor's hands

 

OF NOTICE OF DISHONOUR

 

91.        Dishonour by non‑acceptance

92.        Dishonour by non‑payment

93.        By and to whom notice should be given

94.        Mode in which notice may be given

95.        Party receiving must transmit notice of dishonour

96.        Agent for presentment

97.        When party to whom notice given is dead

98.        When notice of dishonour is unnecessary

 

OF NOTING AND PROTEST

 

99.        Noting

100.      Protest

101.      Contents of protest

102.      Notice of protest

103.      Protest for non‑payment after disbonour by non‑acceptance

104.      Protest of foreign bills

104A.   When noting equivalent to protest

 

OF REASONABLE TIME

 

105.      Reasonable time

106.      Reasonable time of giving notice of dishonour

107.      Reasonable time for transmitting such notice

 

OF ACCEPTANCE AND PAYMENT FOR HONOUR AND REFERENCE IN CASE OF NEED

 

108.      Acceptance for honour

109.      How acceptance for honour must be made

110.      Acceptance not specifying for whose honour it is made

111.      Liability of acceptor for honour

112.      When acceptor for honour may be charged

113.      Payment for honour

114.      Right of payer for honour

115.      Drawee in case of need

116.      Acceptance and payment without protest

 

OF COMPENSATION

 

117.      Rules as to compensation

 

SPECIAL RULES OF EVIDENCE

 

118.      Presumptions as to negotiable instruments

119.      Presumption on proof of protest

120.      Estoppel against denying original validity of instrument

121.      Estoppel against denying capacity of payee to indorse

122.      Estoppel against denying signature or ‑capacity of prior pa

 

OF CROSSED CHEQUES

 

123.      Cheque crossed generally

124.      Cheque crossed specially

125.      Crossing after issue

126.      Payment of cheque crossed generally/ specially

127.      Payment of cheque crossed specially more than once

128.      Payment in due course of crossed cheque

129.      Payment of crossed cheque out of due course

130.      Cheque bearing "not negotiable"

131.      Non‑liability of banker receiving payment of cheque

131A.   Application of Chapter to drafts

 

OF BILLS IN SETS

 

132.      Set of bills

133.      Holder of first acquired part entitled to all

 

OF INTERNATIONAL LAW

 

134.      Law governing liability of maker, acceptor or indorser of foreign instrument

135.      Law of place of payment governs dishonour

136.      Instrument made, etc., out of India, but in accordance with the law of India

137.      Presumption as to foreign law

 

OF PENALTIES IN CASE OF DISHONOUR OF CERTAIN CHEOUES FOR INSUFFICIENCY OF FUNDS IN THE ACCOUNTS

 

138.      Dishonour of cheque for insufficiency, etc., of funds in the account

139.      Presumption in favour of holder

140.      Defence which may not be allowed in any prosecution under section 138

141.      Offences by companies

142.      Cognizance of offences

143.      Power of Court to try cases summarily

144.      Mode of service of summons

145.      Evidence on affidavit

146.      Bank's slip prima facie evidence of certain facts

147.      Offences to be compoundable