Advocate OS
Start free

NI Act · In force

The Negotiable Instruments Act, 1881

Cheque bounce (s.138) and negotiable instruments.

141 sections · As amended up to 2026-08

Sections

  1. 0Section 0
  2. II — OF NOTES, BILLSAND CHEQUES
  3. 1The Act has been extended to Goa, Daman and Diu with modifications, by Reg. 12 of 1962, s. 3 and Sch
  4. VII — OF DISCHARGE FROM LIABILITY ON NOTES, BILLS AND CHEQUES
  5. 2Discharge from liability
  6. II — OF NOTES, BILLSAND CHEQUES
  7. 3The Explanation III, ins. by s. 2, ibid , (w.e.f. 15-6-2015)
  8. 4"Promissory note."
  9. 5"Bill of exchange."
  10. 6"Cheque."
  11. IV — OF NEGOTIATION
  12. 7Liability of banker for negligently dealing with bill presented for payment
  13. II — OF NOTES, BILLSAND CHEQUES
  14. 11Inland instrument
  15. 12Foreign instrument
  16. 14Negotiation
  17. 15Indorsement
  18. 16Indorsement "in blank" and "in full"
  19. 17Ambiguous instruments
  20. 18Where amount is stated differently in figures and words
  21. 19Instruments payable on demand
  22. 20Inchoate stamped instruments
  23. 21"At sight"
  24. 22"Maturity"
  25. 23Calculating maturity of bill or note payable so many months after date or sight
  26. 24Calculating maturity of bill or note payable so many days after date or sight
  27. 25When day of maturity is a holiday
  28. III — PARTIES TO NOTES, BILLS AND CHEQUES.
  29. 26Capacity to make, etc., promissory notes, etc
  30. 27Agency
  31. 28Liability of agent signing
  32. 29Liability of legal representative signing
  33. 30Liability of drawer
  34. 31Liability of drawee of cheque
  35. 32Liability of maker of note and acceptor of bill
  36. 33Only drawee can be acceptor except in need or for honour
  37. 34Acceptance by several drawees not partners
  38. 35Liability of indorser
  39. 36Liability of prior parties to holder in due course
  40. 37Maker, drawer and acceptor principals
  41. 38Prior party a principal in respect of each subsequent party
  42. 39Suretyship
  43. 40Discharge of indorser's liability
  44. 41Acceptor bound, although, indorsement forged
  45. 42Acceptance of bill drawn in fictitious name
  46. 43Negotiable instrument made, etc., without consideration
  47. 44Partial absence or failure of money-consideration
  48. 45Partial failure of consideration not consisting of money
  49. IV — OF NEGOTIATION
  50. 46Delivery
  51. 47Negotiation by delivery
  52. 48Negotiation by indorsement
  53. 49Conversion of indorsement in blank into indorsement in full
  54. 50Effect of indorsement
  55. 51Who may negotiate
  56. 52Indorser who excludes his own liability or makes it conditional
  57. 53Holder deriving title from holder in due course
  58. 54Instrument indorsed in blank
  59. 55Conversion of indorsement in blank into indorsement in full
  60. 57Legal representative cannot by delivery only negotiate instrument indorsed by deceased
  61. 58Instrument obtained by unlawful means or for unlawful consideration
  62. 59Instrument acquired after dishonour or when overdue
  63. 60Instrument negotiable till payment or satisfaction
  64. 61Presentment for acceptance
  65. 62Presentment of promissory note for sight
  66. 63Drawee's time for deliberation
  67. 64Presentment for payment
  68. 65Hours for presentment
  69. 66Presentment for payment of instrument payable after date or sight
  70. 67Presentment for payment of promissory note payable by instalments
  71. 68Presentment for payment of instrument payable at specified place and not elsewhere
  72. 69Instrument payable at specified place
  73. 70Presentment where no exclusive place specified
  74. 71Presentment when maker, etc., has no known place of business or residence
  75. 72Presentment of cheque to charge drawer
  76. 73Presentment of cheque to charge any other person
  77. 74Presentment of instrument payable on demand
  78. 75Presentment by or to agent, representative of deceased, or assignee of insolvent
  79. 76When presentment unnecessary
  80. 77Liability of banker for negligently dealing with bill presented for payment
  81. VI — OF PAYMENTAND INTEREST
  82. 78To whom payment should be made
  83. 79Interest when rate specified
  84. 80Interest when no rate specified
  85. 81Delivery of instrument on payment or indemnity in case of loss
  86. VII — OF DISCHARGE FROM LIABILITY ON NOTES, BILLS AND CHEQUES
  87. 82Discharge from liability
  88. 83Discharge by allowing drawee more than forty-eight hours to accept
  89. 85Cheque payable to order
  90. 86Parties not consenting discharged by qualified or limited acceptance
  91. 87Effect of material alteration
  92. 88Acceptor or indorser bound notwithstanding previous alteration
  93. 89Payment of instrument on which alteration is not apparent
  94. VIII — OF NOTICE OF DISHONOUR
  95. 91Dishonour by non-acceptance
  96. 92Dishonour by non-payment
  97. 93By and to whom notice should be given
  98. 94Mode in which notice may be given
  99. 95Party receiving must transmit notice of dishonour
  100. 96Agent for presentment
  101. 97When party to whom notice given is dead
  102. 98When notice of dishonour is unnecessary
  103. IX — O F N O T I NG A N D P R O T E S T
  104. 99Noting
  105. 100Protest
  106. 102Notice of protest
  107. 103Protest for non-payment after dishonour by non-acceptance
  108. 104Protest of foreign bills
  109. X — OF R E A S O N A B L E T I M E
  110. 105Reasonable time
  111. 106Reasonable time of giving notice of dishonour
  112. 107Reasonable time for transmitting such notice
  113. XI — OF ACCEPTANCE AND PAYMENT FOR HONOUR AND REFERENCE IN CASE OF NEED
  114. 108Acceptance for honour
  115. 109How acceptance for honour must be made
  116. 110Acceptance not specifying for whose honour it is made
  117. 111Liability of acceptor for honour
  118. 112When acceptor for honour may be charged
  119. 113Payment for honour
  120. 114Right of payer for honour
  121. 115Drawee in case of need
  122. 116Acceptance and payment without protest
  123. XII — O F C O M P E N S A T I O N
  124. 117Rules as to compensation
  125. XIII — S P E C I A L R U L E S O F E V I D E N C E
  126. 118Presumptions as to negotiable instruments
  127. 119Presumption on proof of protest
  128. 120Estoppel against denying original validity of instrument
  129. 121Estoppel against denying capacity of payee to indorse
  130. 122Estoppel against denying signature or capacity of prior party
  131. XIV — O F CROSSED C H E Q U E S
  132. 123Cheque crossed generally
  133. 124Cheque crossed specially
  134. 125Crossing after issue
  135. 126Payment of cheque crossed generally
  136. 127Payment of cheque crossed specially more than once
  137. 128Payment in due course of crossed cheque
  138. 129Payment of crossed cheque out of due course
  139. 130Cheque bearing "not negotiable"
  140. 131Non-liability of banker receiving payment of cheque
  141. XV — O F B I L L S I N S E T S
  142. 132Set of bills
  143. 133Holder of first acquired part entitled to all
  144. XVI — O F I N T E R N A T I O N A L LA W
  145. 134Law governing liability of maker, acceptor or indorser of foreign instrument
  146. 135Law of place of payment governs dishonour
  147. 136Instrument made, etc., out of India, but in accordance with the law of India
  148. 137Presumption as to foreign law
  149. 138Dishonour of cheque for insufficiency, etc., of funds in the account
  150. 139Presumption in favour of holder
  151. 140Defence which may not be allowed in any prosecution under section 138
  152. 141Offences by companies
  153. 142Cognizance of offences
  154. 142AValidation for transfer of pending cases
  155. 143APower to direct interim compensation
  156. 144Mode of service of summons
  157. 146Bank's slip prima facie evidence of certain facts
  158. 147Offences to be compoundable
  159. XVII — OF PENALTIES IN CASE OF DISHONOUR OF CERTAIN CHEQUES FOR INSUFFICIENCY OF FUNDS IN THE ACCOUNTS
  160. 148Power of Appellate Court to order payment pending appeal against conviction