Unreviewed source edition · CENTRAL catalog context

The Negotiable Instruments Act, 1881

Source: official India Code PDF · catalog record. Fetched 2026-10-19T23:07:34Z. SHA-256 ed3e9db7f37052a1bc1cd665500910c5e123de888bce0375585e9a766bf38501.

Legal currency, territorial applicability and extraction fidelity are unverified. Catalog checksum/size differs from the delivered PDF; both identities are retained. Sections, state notes and footnotes share these physical pages. Compare the full original image.

Search source pages

Section locators

Locators point into full source pages; they are not approved section transcriptions. Original omission, repeal and amendment markers are retained.

1. Section 1 — Short title.—This Act may be called the Negotiable Instruments Act, 1881.
2. Section 2 — [Repeal of enactments.] Rep. by the Repealing and Amending Act, 1891(12 of 1891), s. 2 and
3. Section 3 — Interpretation-clause.—In this Act—
4. Section 4 — “Promissory note.”—A “Promissory note” is an instrument in writing (not being a bank-note or a
5. Section 5 — “Bill of exchange.”—A “bill of exchange” is an instrument in writing containing an unconditional
6. Section 6 — “Cheque.”—A “cheque” is a bill of exchange drawn on a specified banker and not expressed to
7. Section 7 — “Drawer” “Drawee”.—The maker of a bill of exchange or cheque is called the “drawer”; the
8. Section 8 — “Holder”.—The “holder” of a promissory note, bill of exchange or cheque means any person
9. Section 9 — “Holder in due course”.—“Holder in due course” means any person who for consideration
10. Section 10 — “Payment in due course”.—“Payment in due course” means payment in accordance with the
11. Section 11 — Inland instrument.—A promissory note, bill of exchange or cheque drawn or made in 2[India]
12. Section 12 — Foreign instrument. —Any such instrument not so drawn, made or made payable shall be
13. Section 13 — “Negotiable instrument”.— 3 [(1) A “negotiable instrument” means a promissory note, bill of
14. Section 14 — Negotiation.—When a promissory note, bill of exchange or cheque is transferred to any person,
15. Section 15 — Indorsement.—When the maker or holder of a negotiable instrument signs the same, otherwise
16. Section 16 — Indorsement “in blank” and “in full”.— 5 [(1)] If the indorser signs his name only, the
17. Section 17 — Ambiguous instruments.—Where an instrument may be construed either as a promissory note or
18. Section 18 — Where amount is stated differently in figures and words.—If the amount undertaken or
19. Section 19 — Instruments payable on demand.—A promissory note or bill of exchange, in which no time for
20. Section 20 — Inchoate stamped instruments.—Where one person signs and delivers to another a paper
21. Section 21 — “At sight”.—“On presentment”.—Ina promissory note or bill of exchange the expressions “at
22. Section 22 — “Maturity”.—The maturity of a promissory note or bill of exchange is the date at which it falls
23. Section 23 — Calculating maturity of bill or note payable so many months after date or sight.—In
24. Section 24 — Calculating maturity of bill or note payable so many days after date or sight.—In calculating
25. Section 25 — When day of maturity is a holiday.—When the day on which a promissory note or bill of
26. Section 26 — Capacity to make, etc., promissory notes, etc.—Every person capable of contracting, according
27. Section 27 — Agency.— Every person capable of binding himself or of being bound, as mentioned in section
28. Section 28 — Liability of agent signing.—An agent who signs his name to a promissory note, bill of exchange
29. Section 29 — Liability of legal representative signing.—A legal representative of a deceased person who
30. Section 30 — Liability of drawer.—The drawer of a bill of exchange or cheque is bound, in case of dishonour
31. Section 31 — Liability of drawee of cheque.—The drawee of a cheque having sufficient funds of the drawer in his
32. Section 32 — Liability of maker of note and acceptor of bill.—In the absence of a contract to the contrary, the
33. Section 33 — Only drawee can be acceptor except in need or for honour.—No person except the drawee of
34. Section 34 — Acceptance by several drawees not partners.—Where there are several drawees of a bill of
35. Section 35 — Liability of indorser.—In the absence of a contract to the contrary, whoever indorses and delivers a
36. Section 36 — Liability of prior parties to holder in due course.—Every prior party to a negotiable instrument
37. Section 37 — Maker, drawer and acceptor principals.—The maker of a promissory note or cheque, the drawer of
38. Section 38 — Prior party a principal in respect of each subsequent party.—As between the parties so liable
39. Section 39 — Suretyship.—When the holder of an accepted bill of exchange enters into any contract with the
40. Section 40 — Discharge of indorser's liability.—Where the holder of a negotiable instrument, without the
41. Section 41 — Acceptor bound, although, indorsement forged.—An acceptor of a bill of exchange already
42. Section 42 — Acceptance of bill drawn in fictitious name.—An acceptor of a bill of exchange drawn in a
43. Section 43 — Negotiable instrument made, etc., without consideration.—A negotiable instrument made,
44. Section 44 — Partial absence or failure of money-consideration.—When the consideration for which a
45. Section 45 — Partial failure of consideration not consisting of money.—Where a part of the consideration
46. Section 45A — Holder's right to duplicate of lost bill.—Where a bill of exchange has been lost before it is
47. Section 46 — Delivery.—The making, acceptance or indorsement of a promissory note, bill of exchange or
48. Section 47 — Negotiation by delivery.—Subject to the provisions of section 58, a promissory note, bill of
49. Section 48 — Negotiation by indorsement.—Subject to the provisions of section 58, a promissory note, bill of
50. Section 49 — Conversion of indorsement in blank into indorsement in full.—The holder of a negotiable
51. Section 50 — Effect of indorsement.—The indorsement of a negotiable instrument followed by delivery
52. Section 51 — Who may negotiate.—Every sole maker, drawer, payee or indorsee, or all of several joint
53. Section 52 — Indorser who excludes his own liability or makes it conditional.—The indorser of a negotiable
54. Section 53 — Holder deriving title from holder in due course.—A holder of a negotiable instrument who
55. Section 54 — Instrument indorsed in blank.—Subject to the provisions hereinafter contained as to crossed
56. Section 55 — Conversion of indorsement in blank into indorsement in full.—If a negotiable instrument,
57. Section 56 — Indorsement for part of sum due.—No writing on a negotiable instrument is valid for the
58. Section 57 — Legal representative cannot by delivery only negotiate instrument indorsed by deceased.—
59. Section 58 — Instrument obtained by unlawful means or for unlawful consideration.—When a negotiable
60. Section 59 — Instrument acquired after dishonour or when overdue.—The holder of a negotiable
61. Section 60 — Instrument negotiable till payment or satisfaction.—A negotiable instrument may be
62. Section 61 — Presentment for acceptance.—A bill of exchange payable after sight must, if no time or place is
63. Section 62 — Presentment of promissory note for sight.—A promissory note, payable at a certain period after
64. Section 63 — Drawee’s time for deliberation.—The holder must, if so required by the drawee of a bill of
65. Section 64 — Presentment for payment.—3[(1)] Promissory notes, bills of exchange and cheques must be
66. Section 65 — Hours for presentment—Presentment for payment must be made during the usual hours of
67. Section 66 — Presentment for payment of instrument payable after date or sight—A promissory note or
68. Section 67 — Presentment for payment of promissory note payable by instalments.—A promissory note
69. Section 68 — Presentment for payment of instrument payable at specified place and not elsewhere.—A
70. Section 69 — Instrument payable at specified place.—A promissory note or bill of exchange made, drawn or
71. Section 70 — Presentment where no exclusive place specified.—A promissory note or bill of exchange, not
72. Section 71 — Presentment when maker, etc., has no known place of business or residence.—If the maker,
73. Section 72 — Presentment of cheque to charge drawer.— 1[Subject to the provisions of section 84,] a cheque
74. Section 73 — Presentment of cheque to charge any other person.—A cheque must, in order to charge any
75. Section 74 — Presentment of instrument payable on demand.—Subject to the provisions of section 31, a
76. Section 75 — Presentment by or to agent, representative of deceased, or assignee of insolvent.—
77. Section 75A — Excuse for delay in presentment for acceptance or payment—Delay in presentment 3[for
78. Section 76 — When presentment unnecessary.—No presentment for payment is necessary, and the instrument
79. Section 77 — Liability of banker for negligently dealing with bill presented for payment.—When a bill of
80. Section 78 — To whom payment should be made.—Subject to the provisions of section 82, clause (c),
81. Section 79 — Interest when rate specified.—When interest at a specified rate is expressly made payable on a
82. Section 80 — Interest when no rate specified.— When no rate of interest is specified in the instrument,
83. Section 81 — Delivery of instrument on payment or indemnity in case of loss.—3[(1)] Any person liable to
84. Section 82 — Discharge from liability.—The maker, acceptor or indorser respectively of a negotiable
85. Section 83 — Discharge by allowing drawee more than forty-eight hours to accept.—If the holder of a bill
86. Section 84 — When cheque not duly presented and drawer damaged thereby.—(1) Where a cheque is not
87. Section 85 — Cheque payable to order.—3[(1)] Where a cheque payable to order purports to be endorsed by or
88. Section 85A — Drafts drawn by one branch of a bank on another payable to order.—where any draft, that
89. Section 86 — Parties not consenting discharged by qualified or limited acceptance.—If the holder of a
90. Section 87 — Effect of material alteration.—Any material alteration of a negotiable instrument renders the
91. Section 88 — Acceptor or indorser bound notwithstanding previous alteration.—An acceptor or indorser of
92. Section 89 — Payment of instrument on which alteration is not apparent.—1[(1)] Where a promissory note,
93. Section 90 — Extinguishment of rights of action on bill in acceptor's hands.—If a bill of exchange which
94. Section 91 — Dishonour by non-acceptance.—A bill of exchange is said to be dishonoured by non-acceptance
95. Section 92 — Dishonour by non-payment.—A promissory note, bill of exchange or cheque is said to be
96. Section 93 — By and to whom notice should be given.—When a promissory note, bill of exchange or cheque
97. Section 94 — Mode in which notice may be given.—Notice of dishonour may be given to a duly authorized agent
98. Section 95 — Party receiving must transmit notice of dishonour.—Any party receiving notice of dishonour
99. Section 96 — Agent for presentment.—When the instrument is deposited with an agent for presentment, the
100. Section 97 — When party to whom notice given is dead.—when the party to whom notice of dishonour is
101. Section 98 — When notice of dishonour is unnecessary.—No notice of dishonour is necessary—
102. Section 99 — Noting.—When a promissory note or bill of exchange has been dishonoured by non-acceptance
103. Section 100 — Protest.—When a promissory note or bill of exchange has been dishonoured by non-acceptance
104. Section 101 — Contents of protest.—A protest under section 100 must contain—
105. Section 102 — Notice of protest.—When a promissory note or bill of exchange is required by law to be
106. Section 103 — Protest for non-payment after dishonour by non-acceptance.—All bills of exchange drawn
107. Section 104 — Protest of foreign bills.—Foreign bills of exchange must be protested for dishonour when such
108. Section 104A — When noting equivalent to protest.—For the purposes of this Act, where a bill of note is
109. Section 105 — Reasonable time.—In determining what is a reasonable time for presentment for acceptance or
110. Section 106 — Reasonable time of giving notice of dishonour.—If the holder and the party to whom notice of
111. Section 107 — Reasonable time for transmitting such notice.—A party receiving notice of dishonour, who
112. Section 108 — Acceptance for honour.—When a bill of exchange has been noted or protested for non-
113. Section 109 — How acceptance for honour must be made.—A person desiring to accept for honour must,
114. Section 110 — Acceptance not specifying for whose honour it is made.—Where the acceptance does not
115. Section 111 — Liability of acceptor for honour.—An acceptor for honour binds himself to all parties
116. Section 112 — When acceptor for honour may be charged.—An acceptor for honour cannot be charged
117. Section 113 — Payment for honour.—When a bill of exchange has been noted or protested for non-payment,
118. Section 114 — Right of payer for honour.—Any person so paying is entitled to all the rights in respect of the
119. Section 115 — Drawee in case of need.—Where a drawee in case of need is named in a bill of exchange, or in
120. Section 116 — Acceptance and payment without protest.—A drawee in case of need may accept and pay the
121. Section 117 — Rules as to compensation.—The compensation payable in case of dishonour of a promissory
122. Section 118 — Presumptions as to negotiable instruments.—Until the contrary is proved, the following
123. Section 119 — Presumption on proof of protest.—Ina suit upon an instrument which has been
124. Section 120 — Estoppel against denying original validity of instrument.—No maker of a promissory note,
125. Section 121 — Estoppel against denying capacity of payee to indorse.—No maker of a promissory note and
126. Section 122 — Estoppel against denying signature or capacity of prior party.—No indorser of a negotiable
127. Section 123 — Cheque crossed generally.—Where a cheque bears across its face an addition of the words
128. Section 124 — Cheque crossed specially.—Where a cheque bears across its face an addition of the name of a
129. Section 125 — Crossing after issue.—Where a cheque is uncrossed, the holder may cross it generally or
130. Section 126 — Payment of cheque crossed generally.—Where a cheque is crossed generally, the banker on
131. Section 127 — Payment of cheque crossed specially more than once.—Where a cheque is crossed specially
132. Section 128 — Payment in due course of crossed cheque.—Where the banker on whom a crossed cheque is
133. Section 129 — Payment of crossed cheque out of due course.—Any banker paying a cheque crossed
134. Section 130 — Cheque bearing “not negotiable”.—A person taking a cheque crossed generally or specially,
135. Section 131 — Non-liability of banker receiving payment of cheque.—A banker who has in good faith and
136. Section 131A — Application of Chapter to drafts.—The provisions of this Chapter shall apply to any draft,
137. Section 132 — Set of bills.—Bills of exchange may be drawn in parts, each part being numbered and containing
138. Section 133 — Holder of first acquired part entitled to all—As between holders in due course of different parts
139. Section 134 — Law governing liability of maker, acceptor or indorser of foreign instrument.—In the absence
140. Section 135 — Law of place of payment governs dishonour.—Where a promissory note, bill of exchange or
141. Section 136 — Instrument made, etc., out of India, but in accordance with the law of India.—If a
142. Section 137 — Presumption as to foreign law.—The law of any foreign country 1*** regarding promissory
143. Section 138 — Dishonour of cheque for insufficiency, etc., of funds in the account.—Where any cheque
144. Section 139 — Presumption in favour of holder.—It shall be presumed, unless the contrary is proved, that the
145. Section 140 — Defence which may not be allowed in any prosecution under section 138.—Itshall not be a
146. Section 141 — Offences by companies.—(1) If the person committing an offence under section 138 is a
147. Section 142 — Cognizance of offences.—1[(1)] Notwithstanding anything contained in the Code of Criminal
148. Section 142A — Validation for transfer of pending cases.—(1) Notwithstanding anything contained in the
149. Section 143 — Power of Court to try cases summarily.—(1) Notwithstanding anything contained in the
150. Section 143A — Power to direct interim compensation.—(1) Notwithstanding anything contained in the
151. Section 144 — Mode of service of summons.—(1) Notwithstanding anything contained in the Code of
152. Section 145 — Evidence on affidavit.—(1)Notwithstanding anything contained in the Code of Criminal
153. Section 146 — Bank’s slip prima facie evidence of certain facts.—The Court shall, in respect of every
154. Section 147 — Offences to be compoundable.—Notwithstanding anything contained in the Code of Criminal
155. Section 148 — Power of Appellate Court to order payment pending appeal against conviction.—(1)

Source notes and repealed material

• Territorial Source Notes · section 1, 3: page 8
• Repeal Marker · section 2: page 8
• Amendment Footnotes · section 138, 141: page 28
• Amendment Footnotes · section 142, 142A: page 29
• Amendment Footnotes · section 143, 143A: page 30
• Amendment Footnote · section 148: page 31
• Repealed Schedule: page 32

Every physical page

1. Page 1
2. Page 2
3. Page 3
4. Page 4
5. Page 5
6. Page 6
7. Page 7
8. Page 8
9. Page 9
10. Page 10
11. Page 11
12. Page 12
13. Page 13
14. Page 14
15. Page 15
16. Page 16
17. Page 17
18. Page 18
19. Page 19
20. Page 20
21. Page 21
22. Page 22
23. Page 23
24. Page 24
25. Page 25
26. Page 26
27. Page 27
28. Page 28
29. Page 29
30. Page 30
31. Page 31
32. Page 32