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The Negotiable Instruments Act, 1881: page 20

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    83. Discharge by allowing drawee more than forty-eight hours to accept.—If the holder of a bill
of exchange allows the drawee more than 1[forty-eight] hours, exclusive of public holidays, to consider
whether he will accept the same, all previous parties not consenting to such allowance are thereby
discharge from liability to such holder.
       2
     [84. When cheque not duly presented and drawer damaged thereby.—(1) Where a cheque is not
presented for payment within a reasonable time of its issue, and the drawer or person on whose account it
is drawn had the right, at the time when presentment ought to have been made, as between himself and
the banker, to have the cheque paid and suffers actual damage through the delay, he is discharged to the
extent of such damage, that is to say, to the extent to which such drawer or person is a creditor of the
banker to a large amount than he would have been if such cheque had been paid.
    (2) In determining what is a reasonble time, regard shall be had to the nature of the instrument, the
usage of trade and of bankers, and the facts of the particular case.
    (3) The holder of the cheque as to which such drawer of person is so discharged shall be a creditor, in
lieu of such drawer or person, of such banker to the extent of such discharge and entitled to recover the
amount from him.
                                                    Illustrations
     (a) A draws a cheque for Rs. 1,000, and, when the cheque ought to be presented, has funds at the bank to meet
it. The bank fails before the cheque is presented. The drawer is discharged, but the holder can prove against the bank
for the amount of the cheque.                                              e
                                                                    od
    (b) A draws a cheque at Umballa on a bank in Calcutta. The bank fails before the cheque could be presented in
ordinary course. A is not discharged, for he has not suffered actual damage through any delay in presenting the
cheque.]                                                      aC
   85. Cheque payable to order.—3[(1)] Where a cheque payable to order purports to be endorsed by or
                                                        di
on behalf of the payee, the drawee is discharged by payment in due course.
       4                                           In
     [(2) Where a cheque is originally expressed to be payable to bearer, the drawee is discharged
by payment in due course to the bearer thereof, notwithstanding any endorsement whether in full or
in blank appearing thereon, and notwithstanding that any such endorsement pu rports to restrict or
exclude further negotiation.]
   5
    [85A. Drafts drawn by one branch of a bank on another payable to order.—where any draft, that
is an order to pay money, drawn by one office of a bank upon another office of the same bank for a sum
of money payable to order on demand, purports to be endorsed by or on behalf of the payee, the bank is
discharged by payment in due course.]
     86. Parties not consenting discharged by qualified or limited acceptance.—If the holder of a
bill of exchange acquiesces in a qualified acceptance, or one limited to part of the sum mentioned in
the bill, or which substitutes a different place or time for payment, or which, where the drawees are
not partners, is not signed by all the drawees, all previous parties whose consent is not obtained to
such acceptance are discharged as against the holder and those claiming under him, unless on notice
given by the holder they assent to such acceptance.
       Explanation.—An acceptance is qualified
           (a) where it is conditional, declaring the payment to be dependent on the happening of an event
       therein stated;
           (b) where it undertakes the payment of part only of the sum ordered to be paid;




1. Subs. by Act 12 of 1921, s. 2, for “twenty-four”.
2. Subs. by Act 6 of 1897, s. 3, for s. 84.
3. S. 85 re-numbered as sub-section (1) thereof by Act 17 of 1934, s. 2.
4. Ins. by s. 2, ibid.
5. Ins. by Act 25 of 1930, s. 2.



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