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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