Negotiable Instruments Act, 1881

This Act has been promulgated in the Year 1881 originally but was Amended by Parliament of India from time to time. This Statute is aimed to define and amend the prevailing law relating to Promissory Notes, Bills of Exchange and Cheques. This bare act has Seventeen Chapters and 148 Sections. The Chapters includes Notes, bills and cheques, Parties to Notes, Bills and Cheques, Of Negotiation, Of Discharge From Liability On Notes, Bills And Cheques, Of Notice Of Dishonour And Of Penalties In Case Of Dishonour Of Certain Cheques For Insufficiency Of Funds In The Accounts to name a few. The statute also has provisions like Dishonour of cheque for insufficiency, etc., of funds in the account, Defence which may not be allowed in any prosecution under section 138 and Bank’s slip prima facie evidence of certain facts.

Negotiable Instruments Act, 1881 (PDF File)

• NI Act, Chapter 1. Preliminary
  • NI Act, Section 1. Short title
  • NI Act, Section 2. Repeal of enactments
• NI Act, Chapter 2. Of Notes, Bills and Cheques
  • NI Act, Section 3. Interpretation clause
  • NI Act, Section 4. Promissory note
• NI Act, Chapter 3. Parties to Notes, Bills and Cheques
  • NI Act, Section 5. Bill of exchange
  • NI Act, Section 6. Cheque
  • NI Act, Section 7. Drawer, drawee
  • NI Act, Section 8. Holder
  • NI Act, Section 9. Holder in due course
  • NI Act, Section 10. Payment in due course
  • NI Act, Section 11. Inland instrument
  • NI Act, Section 12. Foreign instrument
  • NI Act, Section 13. Negotiable instrument
  • NI Act, Section 14. Negotiation
  • NI Act, Section 15. Endorsement
  • NI Act, Section 16. Endorsement in blank and in full-endorsee
  • NI Act, Section 17. Ambiguous instruments
  • NI Act, Section 18. Where amount is stated differently in figures and words
  • NI Act, Section 19. Instruments payable on demand
  • NI Act, Section 20.Inchoate stamped instruments
  • NI Act, Section 21. “At sight”, “On presentment”, “After sight”
  • NI Act, Section 22. “Maturity”
  • NI Act, Section 23. Calculating maturity of bill or note payable so many months after date or sight
  • NI Act, Section 24. Calculating maturity of bill or note payable so many days after date so sight
  • NI Act, Section 25. When day of maturity is a holiday
  • NI Act, Section 26. Capacity to make, etc., promissory notes, etc
  • NI Act, Section 27. Agency
  • NI Act, Section 28. Liability of agent signing
  • NI Act, Section 29. Liability of legal representative signing
  • NI Act, Section 30. Liability of drawer
  • NI Act, Section 31. Liability of drawee of cheque
  • NI Act, Section 32. Liability of maker of note and acceptor of bill
  • NI Act, Section 33. Only drawee can be acceptor except in need for honour
  • NI Act, Section 34. Acceptance by several drawee not partners
  • NI Act, Section 35. Liability of endorser
  • NI Act, Section 36. Liability of prior parties to holder in due course
  • NI Act, Section 37. Maker, drawer and acceptor principals
  • NI Act, Section 38. Prior party a principal in respect of each subsequent party
  • NI Act, Section 39. Surety ship
  • NI Act, Section 40. Discharge of endorser’s liability
  • NI Act, Section 41. Acceptor bound, although endorsement forged
  • NI Act, Section 42. Acceptance of bill drawn in fictitious name Section 42
  • NI Act, Section 43. Negotiable instrument made, etc., without consideration
  • NI Act, Section 44. Partial absence or failure of money-consideration
  • NI Act, Section 45. Partial failure of consideration not consisting of money
  • NI Act, Section 45A. Holder’s right to duplicate of lost bill
• NI Act, Chapter 4. Of Negotiation
  • NI Act, Section 46. Delivery
  • NI Act, Section 47. Negotiation by delivery
  • NI Act, Section 48. Negotiation by endorsements
  • NI Act, Section 49. Conversion of endorsement in blank into endorsement in full
  • NI Act, Section 50. Effect of indorsement
  • NI Act, Section 51. Who may negotiate
  • NI Act, Section 52. Indorser who excludes his own liability or maker it conditional
  • NI Act, Section 53. Holder deriving title from holder in due course
  • NI Act, Section 54. Instrument indorsed in blank
  • NI Act, Section 55. Conversion of indorsement in blank into indorsement in full
  • NI Act, Section 56. Indorsement for part of sum due
  • NI Act, Section 57. Legal representative cannot by delivery only negotiate instrument indorsed by deceased
  • NI Act, Section 58. Instrument obtained by unlawful means or for unlawful consideration
  • NI Act, Section 59. Instrument acquired after dishonour or when overdue
  • NI Act, Section 60. Instrument negotiable till payment or satisfaction
• NI Act, Chapter 5. Of Presentment
  • NI Act, Section 61. Presentment for acceptance
  • NI Act, Section 62. Presentment of promissory note for sight
  • NI Act, Section 63. Drawee’s time for deliberation
  • NI Act, Section 64. Presentment for payment
  • NI Act, Section 65. Honours for presentment
  • NI Act, Section 66. Presentment for payment of instrument payable after date or sight
  • NI Act, Section 67. Presentment for payment of promissory note payable by instalments
  • NI Act, Section 68. Presentment for payment of instrument payable at specified place and not elsewhere
  • NI Act, Section 69. Instrument payable at specified place
  • NI Act, Section 70. Presentment where no exclusive place specified
  • NI Act, Section 71. Presentment when maker, etc., has no known place of business or residence
  • NI Act, Section 72. Presentment of cheque to charge drawer
  • NI Act, Section 73. Presentment of cheque to charge any other person
  • NI Act, Section 74. Presentment of instrument payable on demand
  • NI Act, Section 75. Presentment by or to agent, representative of deceased, or assignee of insolvent
  • NI Act, Section 75A. Excuse for delay in presentment for acceptance or payment
  • NI Act, Section 76. When presentment unnecessary
  • NI Act, Section 77. Liability of banker for negligently dealing with bill presented for payment
• NI Act, Chapter 6. Of Payment and Interest
  • NI Act, Section 78. To whom payment should be made
  • NI Act, Section 79. Interest when rate specified
  • NI Act, Section 80. Interest when no rate specified
  • NI Act, Section 81. Delivery of instrument on payment or indemnity in case of loss
• NI Act, Chapter 7. Of Discharge from Liablity on Notes, Bills and Cheques
  • NI Act, Section 82. Discharge from liability
  • NI Act, Section 83. Discharge by allowing drawee more than forty-eight hours to accept
  • NI Act, Section 84. When cheque not duly presented any drawer damaged thereby
  • NI Act, Section 85. Cheque payable to order
  • NI Act, Section 85A. Drafts drawn by one branch of a bank on another payable to order
  • NI Act, Section 86. Parties not consenting discharged by qualified or limited acceptance
  • NI Act, Section 87. Affect of material alteration
  • NI Act, Section 88. Acceptor or endorser bound notwithstanding previous alteration
• NI Act, Chapter 8. Of Notice of Dishonour
  • NI Act, Section 91. Dishonor by non- acceptance
  • NI Act, Section 92. Dishonors by non-payment
  • NI Act, Section 93. By and to whom notice should be given
  • NI Act, Section 94. Mode in which notice may be given
  • NI Act, Section 95. Party receiving must transmit notice of dishonor
  • NI Act, Section 96. Agent for presentment
  • NI Act, Section 97. When party to whom notice given is dead
  • NI Act, Section 98. When notice of dishonor is unnecessary
• NI Act, Chapter 9. No noting and Protest
  • NI Act, Section 99. Noting
  • NI Act, Section 100. Protest
  • NI Act, Section 101. Contents of protest
  • NI Act, Section 102. Notice of protest
  • NI Act, Section 103. Protest of non-payment after dishonor by non-acceptance
  • NI Act, Section 104. Protest of foreign bills
  • NI Act, Section 104A. When noting equivalent to protest
• NI Act, Chapter 10. Of reasonable Time
  • NI Act, Section 105. Reasonable time
  • NI Act, Section 106. Reasonable time of giving notice of dishonor
  • NI Act, Section 107. Reasonable time for transmitting such notice
• NI Act, Chapter 11. Of Acceptance and Payment for Honour and Reference in case of need
  • NI Act, Section 108. Acceptance for honour
  • NI Act, Section 109. How acceptance for honour must be made
  • NI Act, Section 110. Acceptance not specifying for whose honor it is made
  • NI Act, Section 111. Liability of acceptor for honor
  • NI Act, Section 112. When acceptor for honor may be charged
  • NI Act, Section 113. Payment for honour
  • NI Act, Section 114. Right of payer for honor
  • NI Act, Section 115. Drawee in case of need
  • NI Act, Section 116. Acceptance and payment without protest
• NI Act, Chapter 12. Of Compensation
  • NI Act, Section 117. Rules as to compensation
• NI Act, Chapter 13. Special Rules of Evidence
  • NI Act, Section 118. Presumptions as to negotiable instruments of consideration
  • NI Act, Section 119. Presumption on proof of protest
  • NI Act, Section 120. Estoppels against denying original validity of instrument
  • NI Act, Section 121. Estoppel against denying capacity of payee to endorse
  • NI Act, Section 122. Estoppels against denying signature or capacity of prior party
• NI Act, Chapter 14, Of Crossed Cheques
  • NI Act, Section 123. Cheque crossed generally
  • NI Act, Section 124. Cheque crossed specially
  • NI Act, Section 125. Crossing after issue
  • NI Act, Section 126. Payment of cheque crossed generally
  • NI Act, Section 127. Payment of cheque crossed specially more than once
  • NI Act, Section 128. Payment in due course of crossed cheque
  • NI Act, Section 129. Payment of cheque crossed specially more than once
  • NI Act, Section 130. Cheque bearing “not negotiable”
  • NI Act, Section 131. Non-liability of banker receiving payment of cheque
  • NI Act, Section 131A. Application of chapter to drafts
• NI Act, Chapter 15, Of Bills in Sets
  • NI Act, Section 132. Set of bills
  • NI Act, Section 133. Holder of first acquired part entitled to all
• NI Act, Chapter 16. Of International Law
  • NI Act, Section 134. Law governing liability of maker, acceptor or endorser of foreign instrument
  • NI Act, Section 135. Law of place of payment governs dishonours
  • NI Act, Section 136. Instrument made, etc. out of India, but in accordance with the law of India
  • NI Act, Section 137. Presumption as to foreign law
• NI Act, Chapter 17. Of Penalties in Case of Dishonour of certain Cheques for insuffiency of Funds in the Accounts
  • NI Act, Section 138. Dishonour of cheque for insufficiency, etc., of funds in the accounts
  • NI Act, Section 139. Presumption in favour of holder
  • NI Act, Section 140. Defence which may not be allowed in any prosecution under section 138
  • NI Act, Section 141. Offences by companies
  • NI Act, Section 142. Cognizance of offences
  • NI Act, Section 142A. Validation for transfer of pending cases
  • NI Act, Section 143. Power of Court to try cases summarily
  • NI Act, Section 143A. Power to direct interim compensation
  • NI Act, Section 144. Mode of service of summons
  • NI Act, Section 145. Evidence on affidavit
  • NI Act, Section 146. Bank’s slip prima facie evidence of certain facts
  • NI Act, Section 147. Offences to be compoundable
  • NI Act, Section 148. Power of Appellate Court to order payment pending appeal against conviction
• Negotiable Instruments (Amendment and Miscellaneous Provisions) Act, 2002
• Negotiable Instruments (Amendment) Act, 2015
• Negotiable Instruments (Amendment) Bill, 2018