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

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