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The Negotiable Instruments Act, 1881: page 19

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            or otherwise waives his right to take advantage of any default in presentment for payment;
        (d) as against the drawer, if the drawer could not suffer damage from the want of such
    presentment.
    77. Liability of banker for negligently dealing with bill presented for payment.—When a bill of
exchange, accepted payable at a specified bank, has been duly presented there for payment and
dishonoured, if the banker so negligently or improperly keeps, deals with or delivers back such bill as to
cause loss to the holder, he must compensate the holder for such loss.
                                                     CHAPTER VI
                                              OF PAYMENTAND INTEREST
    78. To whom payment should be made.—Subject to the provisions of section 82, clause (c),
payment of the amount due on a promissory note, bill of exchange or cheque must, in order to discharge
the maker or acceptor, be made to the holder of the instrument.
    79. Interest when rate specified.—When interest at a specified rate is expressly made payable on a
promissory note or bill of exchange, interest shall be calculated at the rate specified, on the amount of the
principal money due thereon, from the date of the instrument, until tender or realization of such amount,
or until such date after the institution of a suit to recover such amount as the Court directs.
    80. Interest when no rate specified.— When no rate of interest is specified in the instrument,
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interest on the amount due thereon shall, 1[notwithstanding any agreement relating to interest between any
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parties to the instrument], be calculated at the rate of 2[eighteen per centum] per annum, from the date at
which the same ought to have been paid by the party charged, until tender or realization of the amount
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due thereon, or until such date after the institution of a suit to recover such a mount as the Court directs.
    Explanation.—When the party charged is the indorser of an instrument dishonoured by non-payment,
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he is liable to pay interest only from the time that he receives notice of the dishonour.
                                                      In
    81. Delivery of instrument on payment or indemnity in case of loss.—3[(1)] Any person liable to
pay, and called upon by the holder thereof to pay, the amount due on a promissory note, bill of exchange
or cheque is before payment entitled to have it shown, and is on payment entitled to have it delivered up,
to him, or if the instrument is lost or cannot be produced, to be indemnified against any further claim
thereon against him.
    4
    [(2) Where the cheque is an electronic image of a truncated cheque, even after the payment the
banker who received the payment shall be entitled to retain the truncated cheque.
   (3) A certificate issued on the foot of the printout of the electronic image of a truncated cheque by the
banker who paid the instrument, shall be prima facie proof of such payment.]
                                                     CHAPTER VII
                         OF DISCHARGE FROM LIABILITY ON NOTES, BILLS AND CHEQUES
     82. Discharge from liability.—The maker, acceptor or indorser respectively of a negotiable
instrument is discharged from liability thereon—
        (a) by cancellation.—to a holder thereof who cancels such acceptor's or indorser’s name with
    intent to discharge him, and to all parties claiming under such holder;
        (b) by release.—to a holder thereof who otherwise discharges such maker, acceptor or indorser,
    and to all parties deriving title under such holder after notice of such discharge;
        (c) by payment.—to all parties thereto, if the instrument is payable to bearer, or has been
    indorsed in blank, and such maker, acceptor or indorser makes payment in due course of the amount
    due thereon.


1. Subs. by Act 30 of 1926, s. 2, for “except in cases provided for by the Code of Civil Procedure, s . 532”.
2. Subs. by Act 66 of 1988, s. 2, for “six per centum” (w.e.f. 30 -12-1988).
3. Section 81 re-numbered as sub-section (1) thereof by Act 55 of 2002, s. 4 (w.e.f. 6-2-2003).
4. Ins. by s. 4, ibid. (w.e.f. 6-2-2003).


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