Negotiable Instruments Act, 1881 – Section wise Bare Act

The Negotiable Instruments Act, 1881

Chapter-I Preliminary

Section-1 Short title

Section-2 Repeal of enactments

Section-3 Interpretation-clause

Chapter- II Of Notes, Billsand Cheques

Section-4 Promissory note

Section-5 Bill of exchange

Section-6 Cheque

Section-7 “Drawer” “Drawee”

Section-8 Holder

Section-9 Holder in due course

Section-10 Payment in due course

Section-11 Inland instrument

Section-12 Foreign instrument

Section-13 Negotiable instrument

Section-14 Negotiation

Section-15 Indorsement

Section-16 Indorsement “in blank” and “in full”

Section-17 Ambiguous instruments

Section-18 Where amount is stated differently in figures and words

Section-19 Instruments payable on demand

Section-20 Inchoate stamped instruments

Section-21 “At sight”,“ On presentment”

Section-22 Maturity

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

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

Section-25 When day of maturity is a holiday

Chapter- III Parties Notes, Billsand Cheques

Section-26 Capacity to make, etc., promissory notes, etc

Section-27 Agency

Section-28 Liability of agent signing

Section-29 Liability of legal representative signing

Section-30 Liability of drawer

Section-31 Liability of drawee of cheque

Section-32 Liability of maker of note and acceptor of bill

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

Section-34 Acceptance by several drawees not partners

Section-35 Liability of indorser

Section-36 Liability of prior parties to holder in due course

Section-37 Maker, drawer and acceptor principals

Section-38 Prior party a principal in respect of each subsequent party

Section-39 Suretyship

Section-40 Discharge of indorser’s liability

Section-41 Acceptor bound, although, indorsement forged

Section-42 Acceptance of bill drawn in fictitious name

Section-43 Negotiable instrument made, etc., without consideration

Section-44 Partial absence or failure of money-consideration

Section-45 Partial failure of consideration not consisting of money

Section-45A Holder’s right to duplicate of lost bill

Chapter- IV Of Negotiation

Section-46 Delivery

Section-47 Negotiation by delivery

Section-48 Negotiation by indorsement

Section-49 Conversion of indorsement in blank into indorsement in full

Section-50 Effect of indorsement

Section-51 Who may negotiate

Section-52 Indorser who excludes his own liability or makes it conditional

Section-53 Holder deriving title from holder in due course

Section-54 Instrument indorsed in blank

Section-55 Conversion of indorsement in blank into indorsement in full

Section-56 Indorsement for part of sum due

Section-57 Legal representative cannot by delivery only negotiate instrument indorsed by deceased

Section-58 Instrument obtained by unlawful means or for unlawful consideration

Section-59 Instrument acquired after dishonour or when overdue

Section-60 Instrument negotiable till payment or satisfaction

Chapter- V Of Presentment

Section-61 Presentment for acceptance

Section-62 Presentment of promissory note for sight

Section-63 Drawee’s time for deliberation

Section-64 Presentment for payment

Section-65 Hours for presentment

Section-66 Presentment for payment of instrument payable after date or sight

Section-67 Presentment for payment of promissory note payable by instalments

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

Section-69 Instrument payable at specified place

Section-70 Presentment where no exclusive place specified

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

Section-72 Presentment of cheque to charge drawer

Section-73 Presentment of cheque to charge any other person

Section-74 Presentment of instrument payable on demand

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

Section-75A Excuse for delay in presentment for acceptance or payment

Section-76 When presentment unnecessary

Section-77 Liability of banker for negligently dealing with bill presented for payment

Chapter- VI Of Payment and Interest

Section-78 To whom payment should be made

Section-79 Interest when rate specified

Section-80 Interest when no rate specified

Section-81 Delivery of instrument on payment or indemnity in case of loss

Chapter- VII Of Discharge from Liability on Notes, Bills and Cheques

Section-82 Discharge from liability

Section-83 Discharge by allowing drawee more than forty-eight hours to accept

Section-84 When cheque not duly presented and drawer damaged thereby

Section-85 Cheque payable to order

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

Section-86 Parties not consenting discharged by qualified or limited acceptance

Section-87 Effect of material alteration

Section-88 Acceptor or indorser bound notwithstanding previous alteration

Section-89 Payment of instrument on which alteration is not apparent

Section-90 Extinguishment of rights of action on bill in acceptor’s hands

Chapter- VIII Of Notice of Dishonour

Section-91 Dishonour by non-acceptance

Section-92 Dishonour by non-payment

Section-93 By and to whom notice should be given

Section-94 Mode in which notice may be given

Section-95 Party receiving must transmit notice of dishonour

Section-96 Agent for presentment

Section-97 When party to whom notice given is dead

Section-98 When notice of dishonour is unnecessary

Chapter- IX Of Noting and Protest

Section-99 Noting

Section-100 Protest

Section-101 Contents of protest

Section-102 Notice of protest

Section-103 Protest for non-payment after dishonour by non-acceptance

Section-104 Protest of foreign bills

Section-104A When noting equivalent to protest

Chapter- X Of Reasonable Time

Section-105 Reasonable Time

Section-106 Reasonable time of giving notice of dishonour

Section-107 Reasonable time for transmitting such notice

Chapter- XI Of Acceptance and Payment for Honour and Reference in case of need

 

Section-108 Acceptance for honour

Section-109 How acceptance for honour must be made

Section-110 Acceptance not specifying for whose honour it is made

Section-111 Liability of acceptor for honour

Section-112 When acceptor for honour may be charged

Section-113 Payment for honour

Section-114 Right of payer for honour

Section-115 Drawee in case of need

Section-116 Acceptance and payment without protest

Chapter- XII Of Compensation

Section-117 Rules as to compensation

Chapter- XIII Special Rules of Evidence

Section-118 Presumptions as to negotiable instruments

Section-119 Presumption on proof of protest

Section-120 Estoppel against denying original validity of instrument

Section-121 Estoppel against denying capacity of payee to indorse

Section-122 Estoppel against denying signature or capacity of prior party

Chapter- XIV Of Crossed Cheques

Section-123 Cheque crossed generally

Section-124 Cheque crossed specially

Section-125 Crossing after issue

Section-126 Payment of cheque crossed generally

Section-127 Payment of cheque crossed specially more than once

Section-128 Payment in due course of crossed cheque

Section-129 Payment of crossed cheque out of due course

Section-130 Cheque bearing “not negotiable”

Section-131 Non-liability of banker receiving payment of cheque

Section-131A Application of Chapter to drafts

Chapter- XV Of Bills in Sets

Section-132 Set of bills

Section-133 Holder of first acquired part entitled to all

Chapter- XVI Of International Law

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

Section-135 Law of place of payment governs dishonour

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

Section-137 Presumption as to foreign law

Chapter- XVII Of Penalties in case of Dishonour of certain Cheques for insufficiency of funds in the Accounts

 

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

Section-139 Presumption in favour of holder

Section-140 Defence which may not be allowed in any prosecution under Section 138

Section-141 Offences by companies

Section-142 Cognizance of offences

Section-142A Validation for transfer of pending cases

Section-143 Power of Court to try cases summarily

Section-143A Power to direct interim compensation

Section-144 Mode of service of summons

Section-145 Evidence on affidavit

Section-146 Bank’s slip prima facie evidence of certain facts

Section-147 Offences to be compoundable

Section-148 Power of Appellate Court to order payment pending appeal against conviction

---

Access complete Bare Act here and Notification and Circular here.

IBC Laws specifically does not make any warranties or representations as to the accuracy, completeness or adequacy of any such Material or the same being up-to-date. IBC Laws periodically updates the Material on this Site whenever amendments are made by Parliament. Refer disclaimer here.