THE NEGOTIABLE INSTRUMENTS ACT, 1881

1
THE NEGOTIABLE INSTRUMENTS ACT, 1881
_____________
ARRENGMENT OF SECTIONS
PREAMBLE ____________
CHAPTER I
PRELIMINARY
SECTIONS
1. Short title.
Local extent.
Saving of usages relating to hundis, etc.
Commencement.
2. [Repealed.]
3. Interpretation-clause.
Banker.
CHAPTER II
OF NOTES, BILLS AND CHEQUES
4. “Promissory note”.
5. “Bill of exchange”.
6. “Cheque”.
7. “Drawer.”
“Drawee”.
“Drawee in case of need”.
“Acceptor”.
“Acceptor for honour”.
“Payee”.
8. “Holder”.
9. “Holder in due course”.
10. “Payment in due course”.
11. Inland instrument.
12. Foreign instrument.
13. “Negotiable instrument”.
14. Negotiation.
15. Indorsement.
2
SECTIONS
16. Indorsement “in blank” and “in full”.
“Indorsee”.
17. Ambiguous instruments.
18. Where amount is stated differently in figures and words.
19. Instruments payable on demand.
20. Inchoate stamped instruments.
21. “At sight”.
“On presentment”.
“After sight”.
22. “Maturity”.
Days of grace.
23. Calculating maturity of bill or note payable so many months after date or sight.
24. Calculating maturity of bill or note payable so many days after date or sight.
25. When day of maturity is a holiday.
CHAPTER III
P A R T I E S T O N O T E S, B I L L S A N D C H E Q U E S .
26. Capacity to make, etc., promissory notes, etc.
Minor.
27. Agency.
28. Liability of agent signing.
29. Liability of legal representative signing.
30. Liability of drawer.
31. Liability of drawee of cheque.
32. Liability of maker of note and acceptor of bill.
33. Only drawee can be acceptor except in need or for honour.
34. Acceptance by several drawees not partners.
35. Liability of indorser.
36. Liability of prior parties to holder in due course.
37. Maker, drawer and acceptor principals.
38. Prior party a principal in respect of each subsequent party.
39. Suretyship.
40. Discharge of indorser's liability.
3
SECTIONS
41. Acceptor bound, although, indorsement forged.
42. Acceptance of bill drawn in fictitious name.
43. Negotiable instrument made, etc., without consideration.
44. Partial absence or failure of money-consideration.
45. Partial failure of consideration not consisting of money.
45A. Holder's right to duplicate of lost bill.
CHAPTER IV
OF NEGOTIATION
46. Delivery.
47. Negotiation by delivery.
48. Negotiation by indorsement.
49. Conversion of indorsement in blank into indorsement in full.
50. Effect of indorsement.
51. Who may negotiate.
52. Indorser who excludes his own liability or makes it conditional.
53. Holder deriving title from holder in due course.
54. Instrument indorsed in blank.
55. Conversion of indorsement in blank into indorsement in full.
56. Indorsement for part of sum due.
57. Legal representative cannot by delivery only negotiate instrument indorsed by deceased.
58. Instrument obtained by unlawful means or for unlawful consideration.
59. Instrument acquired after dishonour or when overdue.
Accommodation note or bill.
60. Instrument negotiable till payment or satisfaction.
C H A P T E R V
O F P R E S E N T M E N T
61. Presentment for acceptance.
62. Presentment of promissory note for sight.
63. Drawee’s time for deliberation.
64. Presentment for payment.
65. Hours for presentment.
66. Presentment for payment of instrument payable after date or sight.
67. Presentment for payment of promissory note payable by instalments.
4
SECTIONS
68. Presentment for payment of instrument payable at specified place and not elsewhere.
69. Instrument payable at specified place.
70. Presentment where no exclusive place specified.
71. Presentment when maker, etc., has no known place of business or residence.
72. Presentment of cheque to charge drawer.
73. Presentment of cheque to charge any other person.
74. Presentment of instrument payable on demand.
75. Presentment by or to agent, representative of deceased, or assignee of insolvent.
75A. Excuse for delay in presentment for acceptance or payment.
76. When presentment unnecessary.
77. Liability of banker for negligently dealing with bill presented for payment.
CHAPTER VI
OF PAYMENT AND INTEREST
78. To whom payment should be made.
79. Interest when rate specified.
80. Interest when no rate specified.
81. Delivery of instrument on payment, or indemnity in case of loss.
CHAPTER VII
OF DISCHARGE FROM LIABILITY ON NOTES, BILLS AND CHEQUES
82. Discharge from liability.
(a) by cancellation;
(b) by release;
(c) by payment.
83. Discharge by allowing drawee more than forty-eight hours to accept.
84. When cheque not duly presented and drawer damaged thereby.
85. Cheque payable to order.
85A. Drafts drawn by one branch of a bank on another payable to order.
86. Parties not consenting discharged by qualified or limited acceptance.
87. Effect of material alteration.
Alteration by indorsee.
88. Acceptor or indorser bound notwithstanding previous alteration.
89. Payment of instrument on which alteration is not apparent.
90. Extinguishment of rights of action on bill in acceptor's hands.
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CHAPTER VIII
OF NOTICE OF DISHONOUR
SECTIONS
91. Dishonour by non-acceptance.
92. Dishonour by non-payment.
93. By and to whom notice should be given.
94. Mode in which notice may be given.
95. Party receiving must transmit notice of dishonour.
96. Agent for presentment.
97. When party to whom notice given is dead.
98. When notice of dishonour is unnecessary.
CHAPTER IX
O F N O T I N G A N D P R O T E S T
99. Noting.
100. Protest.
Protest for better security.
101. Contents of protest.
102. Notice of protest.
103. Protest for non-payment after dishonour by non-acceptance.
104. Protest of foreign bills.
104A.When noting equivalent to protest.
CHAPTER X
O F R E A S O N A B L E T I M E
105. Reasonable time.
106. Reasonable time of giving notice of dishonour.
107. Reasonable time for transmitting such notice.
CHAPTER XI
OF ACCEPTANCE AND PAYMENT FOR HONOUR AND REFERENCE IN CASE OF NEED
108. Acceptance for honour.
109. How acceptance for honour must be made.
110. Acceptance not specifying for whose honour it is made.
111. Liability of acceptor for honour.
112. When acceptor for honour may be charged.
113. Payment for honour.
114. Right of payer for honour.
115. Drawee in case of need.
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SECTIONS
116. Acceptance and payment without protest.
CHAPTER XII
O F C O M P E N S A T I O N
117. Rules as to compensation.
CHAPTER XIII
S P E C I A L R U L E S O F E V I D E N C E
118. Presumptions as to negotiable instruments.
(a) of consideration;
(b) as to date;
(c) as to time of acceptance;
(d) as to time of transfer;
(e) as to order of indorsements;
(f) as to stamp;
(g) that holder is a holder in due course;
119. Presumption on proof of protest.
120. Estoppel against denying original validity of instrument.
121. Estoppel against denying capacity of payee to indorse.
122. Estoppel against denying signature or capacity of prior party.
CHAPTER XIV
O F C R O S S E D C H E Q U E S
123. Cheque crossed generally.
124. Cheque crossed specially.
125. Crossing after issue.
126. Payment of cheque crossed generally.
Payment of cheque crossed specially.
127. Payment of cheque crossed specially more than once.
128. Payment in due course of crossed cheque.
129. Payment of crossed cheque out of due course.
130. Cheque bearing “not negotiable”.
131. Non-liability of banker receiving payment of cheque.
131A. Application of Chapter to drafts.
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CHAPTER XV
O F B I L L S I N S E T S
SECTIONS
132. Set of bills.
133. Holder of first acquired part entitled to
CHAPTER XVI
O F I N T E R N A T I O N A L L A W
134. Law governing liability of maker, acceptor or indorser of foreign instrument.
135. Law of place of payment governs dishonour.
136. Instrument made, etc., out of India, but in accordance with the law of India.
137. Presumption as to foreign law.
CHAPTER XVII
OF PENALTIES IN CASE OF DISHONOUR OF CERTAIN CHEQUES FOR INSUFFICIENCY OF FUNDS IN THE
ACCOUNTS
138. Dishonour of cheque for insufficiency, etc., of funds in the account.
139. Presumption in favour of holder.
140. Defence which may not be allowed in any prosecution under section 138.
141. Offences by companies.
142. Cognizance of offences.
142A. Validation for transfer of pending cases.
143. Power of Court to try cases summarily.
144. Mode of service of summons.
145. Evidence on affidavit.
146. Bank’s slip prima facie evidence of certain facts.
147. Offences to be compoundable.
SCHEDULE.—[Enactments repealed].
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THE NEGOTIABLE INSTRUMENTS ACT, 1881
ACT NO. 26 OF 18811
[9th December, 1881.]
An Act to define and amend the law relating to Promissory Notes, Bills of Exchange and Cheques.
Preamble.—Whereas it is expedient to define and amend the law relating to promissory notes, bills of
exchange and cheques; It is hereby enacted as follows:—
CHAPTER I
PRELIMINARY
1. Short title.—This Act may be called the Negotiable Instruments Act, 1881.
Local extent. Saving of usages relating to hundis, etc.—It extends to the whole of India 2
*** but
nothing herein contained affects the 3
Indian Paper Currency Act, 1871 (3 of 1871), section 21, or affects any
local usage relating to any instrument in an oriental language:
Provided that such usages may be excluded by any words in the body of the instrument which indicate an
intention that the legal relations of the parties thereto shall he governed by this Act;
Commencement.—and it shall come into force on the first day of March, 1882.
2. [ Repeal of enactments.] Rep. by the Repealing and Amending Act, 1891 (12 of 1891), s. 2 and the
Schedule I.
3. Interpretation-clause.—In this Act—
4
* * * * *
“Banker”.—5
[“banker” includes any person acting as a banker and any post office savings bank;]
6
* * * * *
CHAPTER II
OF NOTES, BILLS AND CHEQUES
4. “Promissory note.”—A “Promissory note” is an instrument in writing (not being a bank-note or a
currency-note) containing an unconditional undertaking, signed by the maker, to pay a certain sum of money
only to, or to the order of, a certain person, or to the bearer of the instrument.
Illustrations
A Signs instruments in the following terms:
(a ) “I promise to pay B or order Rs. 500.”
(b) “I acknowledge myself to be indebted to B in Rs. 1,000, to be paid on demand, for value received.”
(c) “Mr. B, I O U Rs. 1,000.”
(d) “I promise to Pay B Rs. 500 and all other sums which shall be due to him.”
(e) “I promise to Pay B Rs. 500, first deducting thereout any money which he may owe me.”
(f) “I promise to Pay B Rs. 500 seven days after my marriage with C.”
(g) “I, promise to Pay B Rs. 500 on D's death, provided D leaves me enough to pay that sum.”
1. The Act has been extended to Goa, Daman and Diu with modifications, by Reg. 12 of 1962, s. 3 and Sch., extended to and brought
into force in Dadra and Nagar Haveli by Reg. 6 of 1963, s. 2 and Sch. I (w.e.f. 1-7-1965), to the Union territory of Lakshadweep by
Reg. 8 of 1965, s. 3 and the Sch. (w.e.f. 1-10-1967) [and to the State of Arunachal Pradesh by Act 44 of 1993, s. 2 and the Sch.
(w.e.f. 1-7-1994)].
2. The words “except the State of Jammu and Kashmir”, which were subs. by Act 3 of 1951, for “except Part B States”, omitted by
Act 62 of 1956, s. 2 and the Sch.
3. Rep. by the Indian Paper Currency Act, 1923 (10 of 1923). See now the Reserve Bank of India Act, 1934 (2 of 1934), s. 31.
4. Definition of the word “India”, which was subs. by Act 3 of 1951, for the definition of the word “State”, omitted by Act 62 of 1956,
s. 2 and the Sch.
5. Subs. by Act 37 of 1955, s. 2, for the definition of the word “banker”.
6. Omitted by Act 53 of 1952, s. 16 (w.e.f. 14-2-1956).
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(h) “I promise to Pay B Rs. 500 and to deliver to him my black horse on 1st January next.”
The instruments respectively marked (a) and (b) are promissory notes. The instruments respectively marked (c), (d),
(e), (f), (g) and (h) are not promissory notes.
5. “Bill of exchange”.—A “bill of exchange” is an instrument in writing containing an unconditional
order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of,
a certain person or to the bearer of the instrument.
A promise or order to pay is not “conditional”, within the meaning of this section and section 4, by reason
of the time for payment of the amount or any instalment thereof being expressed to be on the lapse of a certain
period after the occurrence of a specified even which, according to the ordinary expectation of mankind, is
certain to happen, although the time of its happening may be uncertain.
The sum payble may be “certain”, within the meaning of this section and section 4, although it includes
future interest or is payable at an indicated rate of exchange, or is according to the course of exchange, and
although the instrument provides that, on default of payment of an instalment, the balance unpaid shall
become due.
The person to whom it is clear that the direction is given or that payment is to be made may be a “certain
person”, within the meaning of this section and section 4, although he is mis-named or designated by
description only.
1
[6. “Cheque”.—A “cheque” is a bill of exchange drawn on a specified banker and not expressed to be
payable otherwise than on demand and it includes the electronic image of a truncated cheque and a cheque in
the electronic form.
Explanation I.—For the purposes of this section, the expressions—
2
[(a) “a cheque in the electronic form” means a cheque drawn in electronic form by using any
computer resource and signed in a secure system with digital signature (with or without biometrics
signature) and asymmetric crypto system or with electronic signature, as the case may be;]
(b) “a truncated cheque” means a cheque which is truncated during the course of a clearing cycle, either by
the clearing house or by the bank whether paying or receiving payment, immediately on generation of an
electronic image for transmission, substituting the further physical movement of the cheque in writing.
Explanation II.— For the purposes of this section, the expression “clearing house” means the clearing
house managed by the Reserve Bank of India or a clearing house recognised as such by the Reserve Bank of
India.]
3
[Explanation III.—For the purposes of this section, the expressions “asymmetric crypto system”,
“computer resource”, “digital signature”, “electronic form” and “electronic signature” shall have the same
meanings respectively assigned to them in the Information Technology Act, 2000 (21 of 2000).]
7. “Drawer.” “Drawee”.—The maker of a bill of exchange or cheque is called the “drawer”; the person
thereby directed to pay is called the “drawee”.
“Drawee in case of need”.— When in the Bill or in any indorsement thereon the name of any person is
given in addition to the drawee to be resorted to in case of need, such person is called a “drawee in case of
need.”
“Acceptor”.—After the drawee of a bill has signed his assent upon the bill, or, if there are more parts
thereof than one, upon one of such parts, and delivered the same, or given notice of such signing to the holder
or to some person on his behalf, he is called the “acceptor”.
“Acceptor for honour”.— 4
[When a bill of exchange has been noted or protested for non-acceptance or
for better security,] and any person accepts it supra protest for honour of the drawer or of any one of the
indorsers, such person is called an “acceptor for honour”.
1. Subs. by Act 55 of 2002, s. 2, for s. 6 (w.e.f. 6-2-2003).
2. Subs. by Act 26 of 2015, s. 2, for clause (a) (w.e.f. 15-6-2015)
3. The Explanation III, ins. by ibid, s. 2 (w.e.f. 15-6-2015).
4. Subs. by Act 2 of 1885, s. 2, for “When acceptance is refus ed and the bill is protested for non-acceptance.”
10
“Payee”.—The person named in the instrument, to whom or to whose order the money is by the
instrument directed to be paid, is called the “Payee”.
8. “Holder”.—The “holder” of a promissory note, bill of exchange or cheque means any person entitled
in his own name to the possession thereof and to receive or recover the amount due thereon from the parties
thereto.
Where the note, bill or cheque is lost or destroyed, its holder is the person so entitled at the time of such
loss or destruction.
9. “Holder in due course”.—“Holder in due course” means any person who for consideration became the
possessor of a promissory note, bill of exchange or cheque if payable to bearer,
or the payee or indorsee thereof, if 1
[payable to order,]
before the amount mentioned in it became payable, and without having sufficient cause to believe that any
defect existed in the title of the person from whom he derived his title.
10. “Payment in due course”.—“Payment in due course” means payment in accordance with the
apparent tenor of the instrument in good faith and without negligence to any person in possession thereof
under circumstances which do not afford a reasonable ground for believing that he is not entitled to receive
payment of the amount therein mentioned.
11. Inland instrument.—A promissory note, bill of exchange or cheque drawn or made in 2
[India], and
made payable in, or drawn upon any person resident, in 2
[India] shall be deemed to be an inland instrument.
12. Foreign instrument. —Any such instrument not so drawn, made or made payable shall be deemed to
be a foreign instrument.
13. “Negotiable instrument”.—3
[(1) A “negotiable instrument” means a promissory note, bill of
exchange or cheque payable either to order or to bearer.
Explanation (i)—A promissory note, bill of exchange or cheque is payable to order which is expressed to
be so payable or which is expressed to be payable to a particular person, and does not contain words
prohibiting transfer or indicating an intention that it shall not be transferable.
Explanation (ii)—A promissory note, bill of exchange or cheque is payble to bearer which is expressed to
be so payable or on which the only or last indorsement is an indorsement in blank.
Explanation (iii)—Where a promissory note, bill of exchange or cheque, either originally or by
indorsement, is expressed to be payable to the order of a specified person, and not to him or his order, it
is nevertheless payable to him or his order at his option.]
4
[(2) A negotiable instrument may be made payable to two or more payees jointly, or it may be made
payable in the alternative to one of two, or one or some of serveral payees.]
14. Negotiation.—When a promissory note, bill of exchange or cheque is transferred to any person, so as
to constitute that person the holder thereof, the instrument is said to be negotiated.
15. Indorsement.—When the maker or holder of a negotiable instrument signs the same, otherwise than
as such maker, for the purpose of negotiation, on the back or face thereof or on a slip of paper annexed
thereto, or so signs for the same purpose a stamped paper intended to be completed as a negotiable instrument,
he is said to indorse the same, and is called the “indorser”.
16. Indorsement “in blank” and “in full”.—5
[(1)] If the indorser signs his name only, the
indorsement is said to be “in blank,” and if he adds a direction to pay the amount mentioned in the
instrument to, or to the order of, a specified person, the indorsement is said to be “in full”; and the person
so specified “Indorsee”.—is called the “indorsee” of the instrument.
6
[(2) The provisions of this Act relating to a payee shall apply with the necessary modifications to an
indorsee.]
1. Subs. by Act 8 of 1919. s. 2, for “payable to, or to the order of, a payee,” .
2. Subs. by Act 36 of 1957, s. 3 and the Second Schedule “a State”.
3. Subs. by Act 8 of 1919, s. 3, for the original sub-section.
4. Ins. by Act 5 of 1914, s. 2.
5. S. 16 renumbered as sub-section (1) by s. 3, ibid.
6. Ins. by s. 3, ibid.
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17. Ambiguous instruments.—Where an instrument may be construed either as a promissory note or bill
of exchange, the holder may at his election treat it as either, and the instrument shall be thenceforward treated
accordingly.
18. Where amount is stated differently in figures and words.—If the amount undertaken or ordered to
be paid is stated differently in figures and in words, the amount stated in words shall be the amount
undertaken or ordered to be paid.
19. Instruments payable on demand.—A promissory note or bill of exchange, in which no time for
payment is specified, and a cheque, are payable on demand.
20. Inchoate stamped instruments.—Where one person signs and delivers to another a paper stamped
in accordance with the law relating to negotiable instruments then in force in 1
[India], and either wholly
blank or having written thereon an incomplete negotiable instrument, he thereby gives prima facie authority
to the holder thereof to make or complete, as the case may be, upon it a negotiable instrument, for any
amount specified therein and not exceeding the amount covered by the stamp. The person so signing shall
be liable upon such instrument, in the capacity in which he signed the same, to any holder in due course for
such amount: provided that no person other than a holder in due course shall recover from the person
delivering the instrument anything in excess of the amount intended by him to be paid thereunder.
21. “At sight”.—“On presentment”.—In a promissory note or bill of exchange the expressions “at
sight” and “on presentment” mean on demand. The expression “After sight”—“after sight” means, in a
promissory note, after presentment for sight, and, in a bill of exchange, after acceptance, or nothing for
non-acceptance, or protest for non-acceptance.
22. “Maturity”.—The maturity of a promissory note or bill of exchange is the date at which it falls
due.
Days of grace.—Every promissory note or bill of exchange which is not expressed to be payable on
demand, at sight or on presentment is at maturity on the third day after the day on which it is expressed to be
payable.
23. Calculating maturity of bill or note payable so many months after date or sight.—In calculating
the date at which a promissary note or bill of exchange, made payable a stated number of months after date or
after sight, or after a certain event, is at maturity, the period stated shall be held to terminate on the day of the
month which corresponds with the day on which the instrument is dated, or presented for acceptance or sight,
or noted for non-acceptance, or protested for non-acceptance, or the event happens, or, where the instrument is
a bill of exchange made payable a stated number of months after sight and has been accepted for honour, with
the day on which it was so accepted. If the month in which the period would terminate has no
corresponding day, the period shall be held to terminate on the last day of such month.
Illustrations
(a) A negotiable instrument, dated 29th January, 1878, it made payable at one month after date. The instrument is at maturity on
the third day after the 28th February, 1878.
(b) A negotiable instrument, dated 30th August, 1878, it made payable three months after date. The instrument is at maturity on
the 3rd December, 1878.
(c) A promissory note or bill of exchange, dated 31st August, 1878, is made payable three months after date. The instrument is at
maturity on the 3rd December, 1878.
24. Calculating maturity of bill or note payable so many days after date or sight.—In calculating the
date at which a promissory note or bill of exchange made payable a certain number of days after date or after
sight or after a certain event is at maturity, the day of the date, or of presentment for acceptance or sight, or of
protest for non-acceptance, or on which the event happens, shall be excluded.
25. When day of maturity is a holiday.—When the day on which a promissory note or bill of exchange
is at maturity is a public holiday, the instrument shall be deemed to be due on the next preceding, business
day.
1. Subs. by Act 3 of 1951, s. 3 and the Sch., for “the States”.
12
Explanation.— The expression “public holiday” includes Sundays: 1
*** and any other day declared by the
2
[Central Government], by notification in the Official Gazette, to be a public holiday.
CHAPTER III
PARTIES TO NOTES, BILLSANDCHEQUES.
26. Capacity to make, etc., promissory notes, etc.—Every person capable of contracting, according to
the law to which he is subject, may bind himself and be bound by the making, drawing, acceptance,
indorsement, delivery and negotiation of a promissory note, bill of exchange or cheque.
Minor.—A minor may draw, indorse, deliver and negotiate such instrument so as to bind all parties
except himself.
Nothing herein contained shall be deemed to empower a corporation to make, indorse or accept such
instruments except in cases in which, under the law for the time being in force, they are so empowered.
27. Agency.— Every person capable of binding himself or of being bound, as mentioned in section 26,
may so bind himself or be bound by a duly authorized agent acting in his name.
A general authority to transact business and to receive and discharge debts does not confer upon an agent
the power of accepting or indorsing bills of exchange so as to bind his principal.
An authority to draw bills of exchange does not of itself import an authority to indorse.
28. Liability of agent signing.—An agent who signs his name to a promissory note, bill of exchange or
cheque without indicating thereon that he signs as agent, or that he does not intend thereby to incur personal
responsibility, is liable personally on the instrument, except to those who induced him to sign upon the belief
that the principal only would be held liable.
29. Liability of legal representative signing.—A legal representative of a deceased person who signs his
name to a promissory note, bill of exchange or cheque is liable personally thereon unless he expressly limits
his liability to the extent of the assets received by him as such.
30. Liability of drawer.—The drawer of a bill of exchange or cheque is bound, in case of dishonour by
the drawee or acceptor thereof, to compensate the holder, provided due notice of dishonour has been given to,
or received by, the drawer as hereinafter provided.
31. Liability of drawee of cheque.—The drawee of a cheque having sufficient funds of the drawer in his
hands properly applicable to the payment of such cheque must pay the cheque when duly required so to do, and , in
default of such payment, must compensate the drawer for any loss or damage caused by such default.
32. Liability of maker of note and acceptor of bill.—In the absence of a contract to the contrary, the maker
of a promissory note and the acceptor before maturity of a bill of exchange are bound to pay the amount thereof at
maturity according to the apparent tenor of the note or acceptance respectively, and the acceptor of a bill of
exchange at or after maturity is bound to pay the amount thereof to the holder on demand.
In default of such payment as aforesaid, such maker or acceptor is bound to compensate any party to the
note or bill for any loss or damage sustained by him and caused by such default.
33. Only drawee can be acceptor except in need or for honour.—No person except the drawee of a bill
exchange, or all or some of several drawees, or a person named therein as a drawee in case of need, or an
acceptor for honour, can bind himself by an acceptance.
34. Acceptance by several drawees not partners.—Where there are several drawees of a bill of
exchange who are not partners, each of them can accept it for himself, but none of them can accept it for
another without his authority.
35. Liability of indorser.—In the absence of a contract to the contrary, whoever indorses and delivers a
negotiable instrument before maturity without, in such it indorsement, expressly excluding or making conditional
his own liability, is bound thereby to every subsequent holder, in case of dishonour by the drawee, acceptor or
maker, to compensate such holder for any loss or damage caused to him by such dishonour, provided due notice
of dishonour has been given to, or received by, such indorser as hereinafter provided.
1. The words “New Year's day, Christmas day: if either of such days falls on a Sunday, the next following Monday: Good-Friday:”
omitted by Act 37 of 1955, s. 3 (w.e.f. 1-4-1956).
2. Subs by the A.O. 1937, for “L.G”.
13
Every indorser after dishonour is liable as upon an instrument payable on demand.
36. Liability of prior parties to holder in due course.—Every prior party to a negotiable instrument is
liable thereon to a holder in due course until the instrument is duly satisfied.
37. Maker, drawer and acceptor principals.—The maker of a promissory note or cheque, the drawer of a
bill of exchange until acceptance, and the acceptor are, in the absence of a contract to the contrary, respectively
liable thereon as principal debtors, and the other parties thereto are liable thereon as sureties for the maker, drawer
or acceptor, as the case may be.
38. Prior party a principal in respect of each subsequent party.—As between the parties so liable as
sureties, each prior party is, in the absence of a contract to the contrary, also liable thereon as a principal
debtor in respect of each subsequent party.
Illustration
A draws a bill payable to his own order on B, who accepts. A afterwards indorses the bill to C, C to D, and D to E. As between E
and B, B is the principal debtor, and A, C and D are his sureties. As between E and A, A is the principal debtor, and C and D are his
sureties. As between E and C, C is the principal debtor and D is his surety.
39. Suretyship.—When the holder of an accepted bill of exchange enters into any contract with the
acceptor which, under section 134 or 135 of the Indian Contract Act, 1872 (9 of 1872), would discharge the
other parties, the holder may expressly reserve his right to charge the other parties, and in such case they are
not discharged.
40. Discharge of indorser's liability.—Where the holder of a negotiable instrument, without the consent
of the indorser, destroys or impairs the indorser's remedy against a prior party, the indorser is discharged from
liability to the holder to the same extent as if the instrument had been paid at maturity.
Illustration
A is the holder of a bill of exchange made payable to the order of B, which contains the following indorsements in
blank:—
First indorsement, “B”.
Second indorsement, “Peter Williams”.
Third indorsement, “Wright & Co.”
Fourth indorsement. “John Rozario”.
This bill A puts in suit against John Rozario and strikes out, without John Rozario's consent, the indorsements by Peter Williams
and Wright & Co. A is not entitled to recover anything from John Rozario.
41. Acceptor bound, although, indorsement forged.—An acceptor of a bill of exchange already
indorsed is not relieved from liability by reason that such indorsement is forged, if he knew or had reason to
believe the indorsement to be forged when he accepted the bill.
42. Acceptance of bill drawn in fictitious name.—An acceptor of a bill of exchange drawn in a fictitious
name and payable to the drawer's order is not, by reason that such name is fictitious, relieved from liability to
any holder in due course claiming under an indorsement by the same hand as the drawer's signature, and
purporting to be made by the drawer.
43. Negotiable instrument made, etc., without consideration.—A negotiable instrument made, drawn,
accepted, indorsed or transferred without consideration, or for a consideration which fails, creates no obligation
of payment between the parties to the transaction. But if any such party has transferred the instrument with or
without indorsement to a holder for consideration, such holder, and every subsequent holder deriving title from
him, may recover the amount due on such instrument from the transferor for consideration or any prior party
thereto.
Exception I.—No party for whose accommodation a negotiable instrument has been made, drawn,
accepted or indorsed can, if he have paid the amount thereof, recover thereon such amount from any person
who became a party to such instrument for his accommodation.
Exception II.—No party to the instrument who has induced any other party to make, draw, accept, indorse or
transfer the same to him for a consideration which he has failed to pay or perform in full shall recover thereon an
amount exceeding the value of the consideration (if any) which he has actually paid or performed.
14
44. Partial absence or failure of money-consideration.—When the consideration for which a person
signed a promissory note, bill of exchange or cheque consisted of money, and was originally absent in part or
has subsequently failed in part, the sum which a holder standing in immediate relation with such signer is
entitled to receive from him is proportionally reduced.
Explanation.—The drawer of a bill of exchange stands in immediate relation with the acceptor. The
maker of a promissory note, bill of exchange or cheque stands in immediate relation with the payee, and the
indorser with his indorsee. Other signers may by agreement stand in immediate relation with a holder.
Illustration
A draws a bill on B for Rs. 500 payable to the order of A, B accepts the bill, but subsequently dishonours, it by
non-payment. A sues B on the bill, B proves that it was accepted for value as to Rs. 400, and as an accommodation to
the plaintiff as to the residue. A can only recover Rs. 400.
45. Partial failure of consideration not consisting of money.—Where a part of the consideration for
which a person signed a promissory note, bill of exchange or cheque, though not consisting of money, is
ascertainable in money without collateral enquiry, and there has been a failure of that part, the sum which a
holder standing in immediate relation with such signer is entitled to receive from him is proportionally
reduced.
1
[45A. Holder's right to duplicate of lost bill.—Where a bill of exchange has been lost before it is
over-due, the person who was the holder of it may apply to the drawer to give him another bill of the same
tenor, giving security to the drawer, if required, to indemnify him against all persons whatever in case the bill
alleged to have been lost shall be found again.
If the drawer on request as aforesaid refuses to give such duplicate bill, he may be compelled to do so.]
CHAPTER IV
OF NEGOTIATION
46. Delivery.—The making, acceptance or indorsement of a promissory note, bill of exchange or cheque
is completed by delivery, actual or constructive.
As between parties standing in immediate relation, delivery to be effectual must be made by the party
making, accepting or indorsing the instrument, or by a person authorized by him in that behalf.
As between such parties and any holder of the instrument other than a holder in due course, it may be
shown that the instrument was delivered conditionally or for a special purpose only, and not for the purpose of
transferring absolutely the property therein.
A promissory note, bill of exchange or cheque payable to bearer is negotiable by the delivery thereof.
A promissory note, bill of exchange or cheque payable to order is negotiable by the holder by indorsement
and delivery thereof.
47. Negotiation by delivery.—Subject to the provisions of section 58, a promissory note, bill of exchange
or cheque payable to bearer is negotiable by delivery thereof.
Exception.—A promissory note, bill of exchange or cheque delivered on condition that it is not to take
effect except in a certain event is not negotiable (except in the hands of a holder for value without notice of
the condition) unless such event happens.
Illustrations
(a) A, the holder of a negotiable instrument payable to bearer, delivers it to B's agent to keep for B. The instrument has been
negotiated.
(b) A, the holder of a negotiable instrument payable to bearer, which is in the hands of A's banker, who is at the time the banker
of B, directs the banker to transfer the instrument to B's credit in the banker's account with B. The banker does so, and accordingly
now possesses the instrument as B's agent. The instrument has been negotiated, and B has become the holder of it.
1. Ins. by Act 2 of 1885, s. 3.
15
48. Negotiation by indorsement.—Subject to the provisions of section 58, a promissory note, bill of
exchange or cheque 1
[payable to order], is negotiable by the holder by indorsement and delivery thereof.
49. Conversion of indorsement in blank into indorsement in full.—The holder of a negotiable
instrument indorsed in blank may, without signing his own name, by writing above the indorser's signature a
direction to pay to any other person as indorsee, convert the indorsement in blank into an indorsement in full;
and the holder does not thereby incur the responsibility of an indorser.
50. Effect of indorsement.—The indorsement of a negotiable instrument followed by delivery transfers
to the indorsee the property therein with the right of further negotiation; but the indorsement may, by express
words, restrict or exclude such right, or may merely constitute the indorsee an agent to indorse the instrument,
or to receive its contents for the indorser, or for some other specified person.
Illustrations
B signs the following indorsements on different negotiable instruments payable to bearer.—
(a) “Pay the contents to C only”.
(b) “Pay C for my use.”
(c) “Pay C or order for the account of B.”
(d) “the within must be credited to C.”
These indorsements exclude the right of further negotiation by C.
(e) “Pay C.”
(f) “Pay C value in account with the Oriental Bank.”
(g) “Pay the contents to C, being part of the consideration in a certain deed of assignment executed by C to the indorser and
others.”
These indorsements do not exclude the right of further negotiation by C.
51. Who may negotiate.—Every sole maker, drawer, payee or indorsee, or all of several joint makers,
drawers, payees or indorsees, of a negotiable instrument may, if the negotiability of such instrument has not
been restricted or excluded as mentioned in section 50, indorse and negotiate the same.
Explanation.—Nothing in this section enables a maker or drawer to indorse or negotiate an instrument,
unless he is in lawful possession or is holder thereof; or enables a payee or indorsee to indorse or negotiate an
instrument, unless he is holder thereof.
Illustration
A bill is drawn payable to A or order. A indorses it to B, the indorsement not containing the words “or order” or any equivalent
words. B may negotiate the instrument.
52. Indorser who excludes his own liability or makes it conditional.—The indorser of a negotiable
instrument may, by express words in the indorsement, exclude his own liability thereon, or make such liability
or the right of the indorsee to receive the amount due thereon depend upon the happening of a specified event,
although such event may never happen.
Where an indorser so excludes his liability and afterwards becomes the holder of the instrument, all
intermediate indorsers are liable to him.
Illustrations
(a) The indorser of a negotiable instrument sign; his name adding the words— “Without recourse.”
Upon this indorsement he incurs no liability.
(b) A is the payee and holder of a negotiable instrument. Excluding personal liability by an indorsement “without
recourse” he transfers the instrument to B, and B indorses it to C, who indorses it to A. A is not only reinstated in his
former rights, but has the rights of an indorsee against B and C.
1. Subs. by Act 8 of 1919, s. 4, for "payable to the order of a specified person, or to a specified person or order".
16
53. Holder deriving title from holder in due course.—A holder of a negotiable instrument who derives
title from a holder in due course has the rights thereon of that holder in due course.
54. Instrument indorsed in blank.—Subject to the provisions hereinafter contained as to crossed
cheques, a negotiable instrument indorsed in blank is payable to the bearer thereof even although originally
payable to order.
55. Conversion of indorsement in blank into indorsement in full.—If a negotiable instrument, after
having been indorsed in blank, is indorsed in full, the amount of it cannot be claimed from the indorser in full,
except by the person to whom it has been indorsed in full, or by one who derives title through such person.
56. Indorsement for part of sum due.—No writing on a negotiable instrument is valid for the purpose of
negotiation if such writing purports to transfer only a part of the amount appearing to be due on the
instrument; but where such amount has been partly paid, a note to that effect may be indorsed on the
instrument, which may then be negotiated for the balance.
57. Legal representative cannot by delivery only negotiate instrument indorsed by deceased.—The
legal representative of a deceased person cannot negotiate by delivery only a promissory note, bill of
exchange or cheque payable to order and indorsed by the deceased but not delivered.
58. Instrument obtained by unlawful means or for unlawful consideration.—When a negotiable
instrument has been lost, or has been obtained from any maker, acceptor or holder thereof by means of an
offence or fraud, or for an unlawful consideration, no possessor or indorsee who claims through the person
who found or so obtained the instrument is entitled to receive the amount due thereon from such maker,
acceptor or holder, or from any party prior to such holder, unless such possessor or indorsee is, or some
person through whom he claims was, a holder thereof in due course.
59. Instrument acquired after dishonour or when overdue.—The holder of a negotiable instrument,
who has acquired it after dishonour, whether by non-acceptance or non-payment, with notice thereof, or after
maturity, has only, as against the other parties, the rights thereon of his transferor:
Accommodation note or bill.—Provided that any person who, in good faith and for consideration,
becomes the holder, after maturity, of a promissory note or bill of exchange made, drawn or accepted without
consideration, for the purpose of enabling some party thereto to raise money thereon, may recover the amount
of the note or bill from any prior party.
Illustration
The acceptor of a bill of exchange, when he accepted it, deposited with the drawer certain goods as a collateral security for the
payment of the bill, with power to the drawer to sell the goods and apply the proceeds in discharge of the bill if it were not paid at
maturity. The bill not having been paid at maturity, the drawer sold the goods and retained the proceeds, but indorsed the bill to A. A's
title is subject to the same objection as the drawer's title.
60. Instrument negotiable till payment or satisfaction.—A negotiable instrument may be negotiated
(except by the maker, drawee or acceptor after maturity) until payment or satisfaction thereof by the maker,
drawee or acceptor at or after maturity, but not after such payment or satisfaction.
C H A P T E R V
O F P R E S E N T M E N T
61. Presentment for acceptance.—A bill of exchange payable after sight must, if no time or place is
specified therein for presentment, be presented to the drawee thereof for acceptance, if he can, after reasonable
search, be found, by a person entitled to demand acceptance, within a reasonable time after it is drawn, and in
business hours on a business day. In default of such presentment, no party thereto is liable thereon to the
person making such default.
If the drawee cannot, after reasonable search, be found, the bill is dishonoured.
If the bill is directed to the drawee at a particular place, it must be presented at that place; and if at the due
date for presentment he cannot, after reasonable search be found there, the till is dishonoured
17
1
[Where authorized by agreement or usage, a presentment through the post office by means of a registered
letter is sufficient.]
62. Presentment of promissory note for sight.—A promissory note, payable at a certain period after sight,
must be presented to the maker thereof for sight (if he can after reasonable search be found) by a person entitled to
demand payment, within a reasonable time after it is made and in business hours on a business day. In default of
such presentment, no party thereto is liable thereon to the person making such default.
63. Drawee’s time for deliberation.—The holder must, if so required by the drawee of a bill of exchange
presented to him for acceptance, allow the drawee 2
[forty-eight] hours (exclusive of public holidays) to
consider whether he will accept it.
64. Presentment for payment.—3
[(1)] Promissory notes, bills of exchange and cheques must be
presented for payment to the maker, acceptor or drawee thereof respectively, by or on behalf of the holder as
hereinafter provided. In default of such presentment, the other parties there to are not liable thereon to such
holder.
1
[Where authorized by agreement or usage, a presentment through the post office by means of a registered
letter is sufficient.]
Exception.—Where a promissory note is payable on demand and is not payable at a specified place, no
presentment is necessary in order to charge the maker thereof.
4
[(2) Notwithstanding anything contained in section 6, where an electronic image of a truncated cheque is
presented for payment, the drawee bank is entitled to demand any further information regarding the truncated
cheque from the bank holding the truncated cheque in case of any reasonable suspicion about the genuineness
of the apparent tenor of instrument, and if the suspicion is that of any fraud, forgery, tampering or destruction
of the instrument, it is entitled to further demand the presentment of the truncated cheque itself for
verification:
Provided that the truncated cheque so demanded by the drawee bank shall be retained by it, if the payment
is made accordingly.]
65. Hours for presentment—Presentment for payment must be made during the usual hours of business,
and, if at a banker's within banking hours.
66. Presentment for payment of instrument payable after date or sight—A promissory note or bill of
exchange, made payable at a specified period after date or sight thereof, must be presented for payment at
maturity.
67. Presentment for payment of promissory note payable by instalments.—A promissory note payable
by instalments must be presented for payment on the third day after the date fixed for payment of each instalment;
and non-payment on such presentment has the same effect as non-payment of a note at maturity.
68. Presentment for payment of instrument payable at specified place and not elsewhere.—A
promissory note, bill of exchange or cheque made, drawn or accepted payable at a specified place and not
elsewhere must, in order to charge any party thereto, be presented for payment at that place.
69. Instrument payable at specified place.—A promissory note or bill of exchange made, drawn or
accepted payable at a specified place must, in order to charge the maker or drawer thereof, be presented for
payment at that place.
70. Presentment where no exclusive place specified.—A promissory note or bill of exchange, not made
payable as mentioned in sections 68 and 69, must be presented for payment at the place of business (if any), or
at the usual residence, of the maker, drawee or acceptor thereof, as the case may be.
71. Presentment when maker, etc., has no known place of business or residence.—If the maker,
drawee or acceptor of a negotiable instrument has no known place of business or fixed residence, and no place
1. Added by Act 2 of 1885, s. 4.
2. Subs. by Act 12 of 1921, s. 2 for “twenty-four”.
3. Section 64 renumbered as sub-section (1) thereof by Act 55 of 2002, s. 3 (w.e.f. 6-2-2003).
4. Ins. by s. 3 ibid., (w.e.f. 6-2-2003).
18
is specified in the instrument for presentment for acceptance or payment, such presentment may be made to
him in person wherever he can be found.
72. Presentment of cheque to charge drawer.— 1
[Subject to the provisions of section 84,] a cheque
must, in order to charge the drawer be presented at the bank upon which it is drawn before the relation
between the drawer and his banker has been altered to the prejudice of the drawer.
73. Presentment of cheque to charge any other person.—A cheque must, in order to charge any person
except the drawer, be presented within a reasonable time after delivery thereof by such person.
74. Presentment of instrument payable on demand.—Subject to the provisions of section 31, a
negotiable instrument payable on demand must be presented for payment within a reasonable time after it is
received by the holder.
75. Presentment by or to agent, representative of deceased, or assignee of insolvent.—Presentment
for acceptance or payment may be made to the duly authorized agent of the drawee, maker or acceptor, as the
case may be, or, where the drawee, maker or acceptor has died, to his legal representative, or, where he has
been declared an insolvent, to his assignee.
2
[75A. Excuse for delay in presentment for acceptance or payment—Delay in presentment 3
[for
acceptance or payment] is excused if the delay is caused by circumstances beyond the control of the holder,
and not imputable to his default, misconduct or negligence. When the cause of delay ceases to operate,
presentment must be made within a reasonable time.]
76. When presentment unnecessary.—No presentment for payment is necessary, and the instrument is
dishonoured at the due date for presentment, in any of the following cases:—
(a) if the maker, drawee or acceptor intentionally prevents the presentment of the instrument, or,
if the instrument being payable at his place of business, he closes such place on a business day during
the usual business hours, or,
if the instrument being payable at some other specified place, neither he nor any person authorized to
pay it attends at such place during the usual business hours, or,
if the instrument not being payable at any specified place, he cannot after due search be found;
(b) as against any party sought to be charged therewith, if he has engaged to pay notwithstanding nonpresentment;
(c) as against any party if, after maturity, with knowledge that the instrument has not been
presented—
he makes a part payment on account of the amount due on the instrument,
or promises to pay the amount due thereon in whole or in part,
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 PAYMENT AND 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
1. Ins. by Act 6 of 1897, s. 2.
2. Ins. by Act 25 of 1920. s. 2.
3. Subs. by Act 12 of 1921, s. 3, for “for payment”.
19
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, interest on
the amount due thereon shall, 1
[notwithstanding any agreement relating to interest between any 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 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 he is
liable to pay interest only from the time that he receives notice of the dishonour.
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 parites 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.
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 5
[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.
6
[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 larger
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.
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).
5. Subs. by Act 12 of 1921, s. 2, for “twenty-four”.
6. Subs. by Act 6 of 1897, s. 3, for s. 84.
20
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.
(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.]
85. Cheque payable to order.—1
[(1)] Where a cheque payable to order purports to be endorsed by or on
behalf of the payee, the drawee is discharged by payment in due course.
2
[(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 purports to restrict or exclude
further negotiation.]
3
[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;
(c) where, no place of payment being specified on the order, it undertakes the payment at a specified
place, and not otherwise or elsewhere; or where, a place of payment being specified in the order, it
undertakes the payment at some other place and not otherwise or elsewhere;
(d) where it undertakes the payment at a time other than that at which under the order it would be
legally due.
87. Effect of material alteration.—Any material alteration of a negotiable instrument renders the same
void as against anyone who is a party thereto at the time of making such alteration and does not consent
thereto, unless it was made in order to carry out the common intention of the original parties;
Alteration by indorsee.—And any such alteration, if made by an indorsee, discharges his indorser from
all liability to him in respect of the consideration thereof.
The provisions of this section are subject to those of sections 20, 49, 86 and 125.
88. Acceptor or indorser bound notwithstanding previous alteration.—An acceptor or indorser of a
negotiable instrument is bound by his acceptance or indorsement notwithstanding any previous alteration of
the instrument.
89. Payment of instrument on which alteration is not apparent.—4
[(1)] Where a promissory note, bill
of exchange or cheque has been materially altered but does not appear to have been so altered,
or where a cheque is presented for payment which does not at the time of presentation appear to be
crossed or to have had a crossing which has been obliterated,
1. S. 85 re-numbered as sub-section (1) thereof by Act 17 of 1934, s. 2.
2. Ins. by s. 2. ibid.
3. Ins. by Act 25 of 1930, s. 2.
4. Section 89 re-numbered as sub-section (1) thereof by Act 55 of 2002, s. 5 (w.e.f. 6-2-2003).
21
payment thereof by a person or banker liable to pay, and paying the same according to the apparent tenor
thereof at the time of payment and otherwise in due course, shall discharge such person or banker from all
liability thereon; and such payment shall not be questioned by reason of the instrument having been altered or
the cheque crossed.
1
[(2) Where the cheque is an electronic image of a truncated cheque, any difference in apparent tenor of
such electronic image and the truncated cheque shall be a material alteration and it shall be the duty of the
bank or the clearing house, as the case may be, to ensure the exactness of the apparent tenor of electronic
image of the truncated cheque while truncating and transmitting the image.
(3) Any bank or a clearing house which receives a transmitted electronic image of a truncated cheque,
shall verify from the party who transmitted the image to it, that the image so transmitted to it and received by
it, is exactly the same.].
90. Extinguishment of rights of action on bill in acceptor's hands.—If a bill of exchange which has
been negotiated is, at or after maturity, held by the acceptor in his own right, all rights of action thereon are
extinguished.
CHAPTER VIII
OF NOTICE OF DISHONOUR
91. Dishonour by non-acceptance.—A bill of exchange is said to be dishonoured by non-acceptance
when the drawee, or one of several drawees not being partners, makes default in acceptance upon being duly
required to accept the bill, or where presentment is excused and the bill is not accepted.
Where the drawee is incompetent to contract, or the acceptance is qualified, the bill may be treated as
dishonoured.
92. Dishonour by non-payment.—A promissory note, bill of exchange or cheque is said to be
dishonoured by non-payment when the maker of the note, acceptor of the bill or drawee of the cheque makes
default in payment upon being duly required to pay the same.
93. By and to whom notice should be given.—When a promissory note, bill of exchange or cheque is
dishonoured by non-acceptance or non-payment, the holder thereof, or some party thereto, who remains liable
thereon, must give notice that the instrument has been so dishonoured to all other parties whom the holder
seeks to make severally liable thereon, and to some one of several parties whom he seeks to make jointly
liable thereon.
Nothing in this section renders it necessary to give notice to the maker of the dishonoured promissory
note or the drawee or acceptor of the dishonoured bill of exchange or cheque.
94. Mode in which notice may be given.—Notice of dishonour may be given to a duly authorized agent of
the person to whom it is required to be given, or, where he has died, to his legal representative, or, where he has
been declared an insolvent, to his assignee; may be oral or written; may, if written, be sent by post; and may be in
any form; but it must inform the party to whom it is given, either in express terms or by reasonable intendment, that
the instrument has been dishonoured, and in what way, and that he will be held liable thereon; and it must be given
within a reasonable time after dishonour, at the place of business or (in case such party has no place of business) at
the residence of the party for whom it is intended.
If the notice is duly directed and sent by post and miscarries, such miscarriage does not render the notice
invalid.
95. Party receiving must transmit notice of dishonour.—Any party receiving notice of dishonour must,
in order to render any prior party liable to himself, give notice of dishonour to such party within a reasonable
time, unless such party otherwise receives due notice as provided by section 93.
96. Agent for presentment.—When the instrument is deposited with an agent for presentment, the agent
is entitled to the same time to give notice to his principal as if he were the holder giving notice of dishonour,
and the principal is entitled to a further like period to give notice of dishonour.
97. When party to whom notice given is dead.—when the party to whom notice of dishonour is
dispatched is dead, but the party dispatching the notice is ignorant of his death, the notice is sufficient.
1. Ins. by Act 55 of 2002, s. 5 (w.e.f. 6-2-2003).
22
98. When notice of dishonour is unnecessary.—No notice of dishonour is necessary—
(a) when it is dispensed with by the party entitled thereto;
(b) in order to charge the drawer when he has countermanded payment;
(c) when the party charged could not suffer damage for want of notice;
(d) when the party entitled to notice cannot after due search be found; or the party bound to give
notice is, for any other reason, unable without any fault of his own to give it;
(e) to charge the drawers, when the acceptor is also a drawer;
(f) in the case of a promissory note which is not negotiable;
(g) when the party entitled to notice, knowing the facts, promises unconditionally to pay the amount
due on the instrument.
CHAPTER IX
O F N O T I NG A N D P R O T E S T
99. Noting.—When a promissory note or bill of exchange has been dishonoured by non-acceptance or
non-payment, the holder may cause such dishonour to be noted by a notary public upon the instrument, or
upon a paper attached thereto, or partly upon each.
Such note must be made within a reasonable time after dishonour, and must specify the date of dishonour,
the reason, if any, assigned for such dishonour, or, if the instrument has not been expressly dishonoured, the
reason why the holder treats it as dishonoured, and the notary's charges.
100. Protest.—When a promissory note or bill of exchange has been dishonoured by non-acceptance or
non-payment, the holder may, within a reasonable time, cause such dishonour to be noted and certified by a
notary public. Such certificate is called a protest.
Protest for better security.—When the acceptor of a bill of exchange has become insolvent, or his
credit has been publicly impeached, before the maturity of the bill, the holder may, within a reasonable
time, cause a notary public to demand better security of the acceptor, and on its being refused may, within
a reasonable time, cause such facts to be noted and certified as aforesaid. Such certificate is called a
protest for better security.
101. Contents of protest.—A protest under section 100 must contain—
(a) either the instrument itself, or a literal transcript of the instrument and of everything written or
printed thereupon;
(b) the name of the person for whom and against whom the instrument has been protested;
(c) a statement that payment or acceptance, or better security, as the case may be, has been demanded
of such person by the notary public; the terms of his answer, if any, or a statement that he gave no answer
or that he could not be found;
(d) when the note or bill has been dishonoured, the place and time of dishonour, and, when better
security has been refused, the place and time of refusal;
(e) the subscription of the notary public making the protest;
(f) in the event of an acceptance for honour or of a payment for honour, the name of the person by
whom, of the person for whom, and the manner in which, such acceptance or payment was offered and
effected.
1
[A notary public may make the demand mentioned in clause (c) of this section either in person or by
his clerk or, where authorized by agreement or usage, by registered letter.]
102. Notice of protest.—When a promissory note or bill of exchange is required by law to be protested,
notice of such protest must be given instead of notice of dishonour, in the same manner and subject to the
same conditions; but the notice may be given by the notary public who makes the protest.
1. Ins. by Act 2 of 1885, s. 5.
23
103. Protest for non-payment after dishonour by non-acceptance.—All bills of exchange drawn
payable at some other place than the place mentioned as the residence of the drawee, and which are
dishonoured by non-acceptance, may, without further presentment to the drawee, be protested for nonpayment
in the place specified for payment, unless paid before or at maturity.
104. Protest of foreign bills.—Foreign bills of exchange must be protested for dishonour when such
protest is required by the law of the place where they are drawn.
1
[104A. When noting equivalent to protest.—For the purposes of this Act, where a bill or note is
required to be protested within a specified time or before some further proceeding is taken, it is sufficient that
the bill has been noted for protest before the expiration of the specified time or the taking of the proceeding;
and, the formal protest may be extended at any time thereafter as of the date of the noting.]
CHAPTER X
OF R E A S O N A B L E T I M E
105. Reasonable time.—In determining what is a reasonable time for presentment for acceptance or
payment, for giving notice of dishonour and for noting, regard shall be had to the nature of the instrument and
the usual course of dealing with respect to similar instruments; and, in calculating such time, public holidays
shall be excluded.
106. Reasonable time of giving notice of dishonour.—If the holder and the party to whom notice of
dishonour is given carry on business or live (as the case may be) in different places, such notice is given
within a reasonable time if it is dispatched by the next post or on the day next after the day of dishonour.
If the said parties carry on business or live in the same place, such notice is given within a reasonable time
if it is dispatched in time to reach its destination on the day next after the day of dishonour.
107. Reasonable time for transmitting such notice.—A party receiving notice of dishonour, who seeks
to enforce his right against a prior party, transmits the notice within a reasonable time if he transmits it within
the same time after its receipt as he would have had to give notice if he had been the holder.
CHAPTER XI
OF ACCEPTANCE AND PAYMENT FOR HONOUR AND REFERENCE IN CASE OF NEED
108. Acceptance for honour.—When a bill of exchange has been noted or protested for non-acceptance or
for better security, any person not being a party already liable thereon may, with the consent of the holder, by
writing on the bill, accept the same for the honour of any party thereto. 2
***
109. How acceptance for honour must be made.—A person desiring to accept for honour must, 3
[by
writing on the bill under his hand,] declare that he accepts under protest the protested bill for the honour of the
drawer or of a particular indorser whom he names, or generally for honour. 4
***
110. Acceptance not specifying for whose honour it is made.—Where the acceptance does not express
for whose honour it is made, it shall be deemed to be made for the honour of the drawer.
111. Liability of acceptor for honour.—An acceptor for honour binds himself to all parties subsequent
to the party for whose honour he accepts to pay the amount of the bill if the drawee do not; and such party and
all prior parties are liable in their respective capacities to compensate the acceptor for honour for all loss or
damage sustained by him in consequence of such acceptance.
But an acceptor for honour is not liable to the holder of the bill unless it is presented, or (in case the
address given by such acceptor on the bill is a place other than the place where the bill is made payable)
forwarded for presentment, not later than the day next after the day of its maturity.
112. When acceptor for honour may be charged.—An acceptor for honour cannot be charged unless
the bill has at its maturity been presented to the drawee for payment, and has been dishonoured by him, and
noted or protested for such dishonour.
1. Ins. by Act 2 of 1885, s. 6.
2. The second sentence rep. by s. 7, ibid,.
3. Subs. by s. 8, ibid., for “in the presence of a notary public, subscribe the bill with his own hand, and”.
4. The words “and such declaration must be recorded by the notary in his register” rep. by s. 8, ibid.
24
113. Payment for honour.—When a bill of exchange has been noted or protested for non-payment, any
person may pay the same for the honour of any party liable to pay the same, provided that the person so
paying 1
[or his agent in that behalf] has previously declared before a notary public the party for whose honour
he pays, and that such declaration has been recorded by such notary public.
114. Right of payer for honour.—Any person so paying is entitled to all the rights in respect of the bill,
of the holder at the time of such payment, and may recover from the party for whose honour he pays all sums
so paid, with interest thereon and with all expenses properly incurred in making such payment.
115. Drawee in case of need.—Where a drawee in case of need is named in a bill of exchange, or in any
indorsement thereon, the bill is not dishonoured until it has been dishonoured by such drawee.
116. Acceptance and payment without protest.—A drawee in case of need may accept and pay the bill
of exchange without previous protest.
CHAPTER XII
O F C O M P E N S A T I O N
117. Rules as to compensation.—The compensation payable in case of dishonour of a promissory note,
bill of exchange or cheque, by any party liable to the holder or any indorsee, shall 2
*** be determined by the
following rules:—
(a) the holder is entitled to the amount due upon the instrument, together with the expenses properly
incurred in presenting, noting and protesting it;
(b) when the person charged resides at a place different from that at which the instrument was
payable, the holder is entitled to receive such sum at the current rate of exchange between the two places;
(c) an indorser who, being liable, has paid the amount due on the same is entitled to the amount so
paid with interest at 3
[eighteen per centum] per annum from the date of payment until tender or realization
thereof, together with all expenses caused by the dishonour and payment;
(d) when the person charged and such indorser reside at different places, the indorser is entitled to
receive such sum at the current rate of exchange between the two places;
(e) the party entitled to compensation may draw a bill upon the party liable to compensate him,
payable at sight or on demand, for the amount due to him, together with all expenses properly incurred by
him. Such bill must be accompanied by the instrument dishonoured and the protest thereof (if any). If
such bill is dishonoured, the party dishonouring the same is liable to make compensation thereof in the
same manner as in the case of the original bill.
CHAPTER XIII
S P E C I A L R U L E S O F E V I D E N C E
118. Presumptions as to negotiable instruments.—Until the contrary is proved, the following
presumptions shall be made:—
(a) of consideration:—that every negotiable instrument was made or drawn for consideration, and
that every such instrument, when it has been accepted, indorsed, negotiated or transferred, was accepted,
indorsed, negotiated or transferred for consideration;
(b) as to date:—that every negotiable instrument bearing a date was made or drawn on such date;
(c) as to time of acceptance:—that every accepted bill of exchange was accepted within a reasonable
time after its date and before its maturity;
(d) as to time of transfer:—that every transfer of a negotiable instrument was made before its
naturity;
1. Ins. by Act 2 of 1885, s. 9.
2. The brackets, words and figures "(except in cases provided for by the Code of Civil Procedure, s. 532,)" omitted by Act 30 of 1926 , s. 3.
3. Subs. by Act 66 of 1988 , s. 3 , for “six per centum” (w.e.f . 30 - 12 - 1988 ).
25
(e) as to order of indorsements:—that the indorsements appearing upon a negotiable instrument
were made in the order in which they appear then on;
(f) as to stamp:— that a lost promissory note, bill of exchange or cheque was duly stamped;
(g) that holder is a holder in due course:— that the holder of a negotiable instrument is a holder in
due course : provided that, where the instrutment has been obtained from its lawful owner, or from any
person in lawful custody thereof, by means of an offence or fraud, or has been obtained from the maker or
acceptor thereof by means of an offence or fraud, or for unlawful consideration, the burden of proving that
the holder is a holder in due course lies upon him.
119. Presumption on proof of protest.—In a suit upon an instrument which has been dishonoured,
the Court shall, on proof of the protest, presume the fact of dishonour, unless and until such fact is
disproved.
120. Estoppel against denying original validity of instrument.—No maker of a promissory note, and
no drawer of a bill of exchange or cheque, and no acceptor of a bill of exchange for the honour of the drawer
shall, in a suit thereon by a holder in due course, be permitted to deny the validity of the instrument as
originally made or drawn.
121. Estoppel against denying capacity of payee to indorse.—No maker of a promissory note and no
acceptor of a bill of exchange 1
[payable to order] shall, in a suit thereon by a holder in due course, be
permitted to deny the payee's capacity, at the date of the note or bill, to indorse the same.
122. Estoppel against denying signature or capacity of prior party.—No indorser of a negotiable
instrument shall, in a suit thereon by a subsequent holder, be permitted to deny the signature or capacity to
contract of any prior party to the instrument.
CHAPTER XIV
O F C R O S S E D C H E Q U E S
123. Cheque crossed generally.—Where a cheque bears across its face an addition of the words “and
company” or any abbreviation thereof, between two parallel transverse lines, or of two parallel transverse
lines simply, either with or without the words “not negotiable”, that addition shall be deemed a crossing, and
the cheque shall be deemed to be crossed generally.
124. Cheque crossed specially.—Where a cheque bears across its face an addition of the name of a
banker, either with or without the words “not negotiable”, that addition shall be deemed a crossing and the
cheque shall be deemed to be crossed specially, and to be crossed to that banker.
125. Crossing after issue.—Where a cheque is uncrossed, the holder may cross it generally or specially.
Where a cheque is crossed generally, the holder may cross it specially.
Where a cheque is crossed generally, or specially, the holder may add the words “not negotiable”.
Where a cheque is crossed specially, the banker to whom it is crossed may again cross it specially to
another banker, his agent, for collection.
126. Payment of cheque crossed generally.—Where a cheque is crossed generally, the banker on whom
it is drawn shall not pay it otherwise than to a banker.
Payment of cheque crossed specially.—Where a cheque is crossed specially, the banker on whom it is
drawn shall not pay it otherwise than to the banker to whom it is crossed, or his agent for collection.
127. Payment of cheque crossed specially more than once.—Where a cheque is crossed specially to
more than one banker, except when crossed to an agent for the purpose of collection, the banker on whom it is
drawn shall refuse payment thereof.
128. Payment in due course of crossed cheque.—Where the banker on whom a crossed cheque is drawn
has paid the same in due course, the banker paying the cheque, and (in case such cheque has come to the
hands of the payee) the drawer thereof, shall respectively be entitled to the same rights, and be placed in the
1. Subs. by Act 8 of 1919, s. 5, for “payable to, or to the orderof,
a specified person”.
26
same position in all respects, as they would respectively be entitled to and placed in if the amount of the
cheque had been paid to and received by the true owner thereof.
129. Payment of crossed cheque out of due course.—Any banker paying a cheque crossed generally
otherwise than to a banker, or a cheque crossed specially otherwise than to the banker to whom the same is
crossed, or his agent for collection, being a banker, shall be liable to the true owner of the cheque for any loss
he may sustain owing to the cheque having been so paid.
130. Cheque bearing “not negotiable”.—A person taking a cheque crossed generally or specially,
bearing in either case the words “not negotiable”, shall not have, and shall not be capable of giving, a better
title to the cheque than that which the person from whom he took it had.
131. Non-liability of banker receiving payment of cheque.—A banker who has in good faith and
without negligence received payment for a customer of a cheque crossed generally or specially to himself
shall not, in case the title to the cheque proves defective, incur any liability to the true owner of the cheque by
reason only of having received such payment.
1
[Explanation 2
[(I)].— A banker receives payment of a crossed cheque for a customer within the meaning
of this section notwithstanding that he credits his customer's account with the amount of the cheque before
receiving payment thereof.]
3
[Explanation II.—It shall be the duty of the banker who receives payment based on an electronic image
of a truncated cheque held with him, to verify the prima facie genuineness of the cheque to be truncated and
any fraud, forgery or tampering apparent on the face of the instrument that can be verified with due diligence
and ordinary care.]
4
[131A. Application of Chapter to drafts.—The provisions of this Chapter shall apply to any draft, as
defined in section 85A, as if the draft were a cheque.]
CHAPTER XV
O F B I L L S I N S E T S
132. Set of bills.—Bills of exchange may be drawn in parts, each part being numbered and containing a
provision that it shall continue payable only so long as the others remain unpaid. All the parts together make a
set; but the whole set constitutes only one bill, and is extinguished when one of the parts, if a separate bill,
would be extinguished.
Exception.—When a person accepts or indorses different parts of the bill in favour of different persons, he
and the subsequent endorsers of each part are liable on such part as if it were a separate bill.
133. Holder of first acquired part entitled to all—As between holders in due course of different parts of
the same set, he who first acquired title to his part is entitled to the other parts and the money representated by
the bill.
CHAPTER XVI
O F I N T E R N A T I O N A L L A W
134. Law governing liability of maker, acceptor or indorser of foreign instrument.—In the absence of a
contract to the contrary, the liability of the maker or drawer of a foreign promissory note, bill of exchange or
cheque is regulated in all essential matters by the law of the place where he made the instrument, and the
respective liabilities of the acceptor and indorser by the law of the place where the instrument is made payable.
Illustration
A bill of exchange was drawn by A in California, where the rate of interest is 25 per cent., and accepted by B, payable in
Washington, where the rate of interest is 6 per cent. The bill is erdorsed in 5
[India], and is dishonoured. An action on the bill is brought
against B in 5
[India]. He is liable to pay interest at the rate of 6 per cent. only; but if A is charged as drawer, A is liable to pay interest
at the rate of 25 per cent.
1. Ins. by Act 18 of 1922, s. 2.
2. Explanation re-numbered as Explanation I thereof by Act 55 of 2002, s. 6 (w.e.f. 6-2-2003).
3. Ins. by s. 6, ibid., (w.e.f. 6-2-2003).
4. Ins. by Act 33 of 1947, s. 2.
5. Subs. by Act 3 of 1951, s. 3 and the Sch. for “the States”.
27
135. Law of place of payment governs dishonour.—Where a promissory note, bill of exchange or
cheque is made payable in a different place from that in which it is made or indorsed, the law of the place
where it is made payable determines what constitutes dishonour and what notice of dishonour is sufficient.
Illustration
A bill of exchange drawn and indorsed in 1
[India], but accepted payable in France, is dishonoured. The indorsee causes it to be
protested for such dishonour, and gives notice thereof in accordance with the law of France, though not in accordance with the rules
herein contained in respect of bills which are not foreign. The notice is sufficient.
136. Instrument made, etc., out of India, but in accordance with the law of India.—If a negotiable
instrument is made, drawn, accepted or indorsed 2
[outside India], but in accordance with the 3
[law of India],
the circumstances that any agreement evidenced by such instrument is invalid according to the law of the
country wherein it was entered into does not invalidate any subsequent acceptance or indorsement made
thereon 4
[within India].
137. Presumption as to foreign law.—The law of any foreign country 5
*** regarding promissory notes,
bills of exchange and cheques shall be presumed to be the same as that of 6
[India], unless and until the
contrary is proved.
7
[CHAPTER XVII
OF PENALTIES IN CASE OF DISHONOUR OF CERTAIN CHEQUES FOR INSUFFICIENCY OF FUNDS IN THE
ACCOUNTS
138. Dishonour of cheque for insufficiency, etc., of funds in the account.—Where any cheque drawn
by a person on an account maintained by him with a banker for payment of any amount of money to another
person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned
by the bank unpaid, either because of the amount of money standing to the credit of that account is insufficient
to honour the cheque or that it exceeds the amount arranged to be paid from that account by an agreement
made with that bank, such person shall be deemed to have committed an offence and shall, without prejudice
to any other provision of this Act, be punished with imprisonment for 8
[a term which may be extended to two
years’], or with fine which may extend to twice the amount of the cheque, or with both:
Provided that nothing contained in this section shall apply unless—
(a) the cheque has been presented to the tank within a period of six months from the date on which it
is drawn or within the period of its validity, whichever is earlier;
(b) the payee or the holder in due course of the cheque, as the case may be, makes a demand for the
payment of the said amount of money by giving a notice; in writing, to the drawer of the cheque, 9
[within
thirty days] of the receipt of information by him from the bank regarding the return of the cheque as
unpaid; and
(c) the drawer of such cheque fails to make the payment of the said amount of money to the payee or,
as the case may be, to the holder in due course of the cheque, within fifteen days of the receipt of the said
notice.
Explanation.—For the purposes of this section, “debt of other liability” means a legally enforceable debt or
other liability.
1. Subs. by Act 3 of 1951, s. 3 and the sch. for “the states”.
2. Subs. by the A.O. 1948, A.O. 1950 and the Act 3 of 1951, s. 3 and the Sch. for “out of British India”.
3. Subs. by s. 3, ibid., for “law of British India” .
4. Subs. by s. 3, ibid., for “in British India”.
5. The words “or the State of Jammu and Kashmir” omitted by Act 62 of 1956, s. 2 and the Sch.
6. Subs. by the A.O. 1948, A.O. 1950 and the Act 3 of 1951, s. 3 and the Sch. for “British India”.
7. Ins. by Act 66 of 1988, s, 4 (w.e.f. 1-4-1989).
8. Subs. by Act 55 of 2002, s.7, for certain words (w.e.f. 6-2-2003).
9. Subs. by s. 7, ibid., for “within fifteen days” (w.e.f. 6-2-2003).
28
139. Presumption in favour of holder.—It shall be presumed, unless the contrary is proved, that the
holder of a cheque received the cheque of the nature referred to in section 138 for the discharge, in whole or in
part, of any debt or other liability.
140. Defence which may not be allowed in any prosecution under section 138.—It shall not be a
defence in a prosecution for an offence under section 138 that the drawer had no reason to believe when he
issued the cheque that the cheque may be dishonoured on presentment for the reasons stated in that section.
141. Offences by companies.—(1) If the person committing an offence under section 138 is a company,
every person who, at the time the offence was committed, was in charge of, and was responsible to, the
company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty
of the offence and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any person liable to punishment if he
proves that the offence was committed without his knowledge, or that he had exercised all due diligence to
prevent the commission of such offence:
1
[Provided further that where a person is nominated as a Director of a company by virtue of his holding
any office or employment in the Central Government or State Government or a financial corporation owned or
controlled by the Central Government or the State Government, as the case may be, he shall not be liable for
prosecution under this Chapter.]
(2) Notwithstanding anything contained in sub-section (1), where any offence under this Act has been
committed by a company and it is proved that the offence has been committed with the consent or connivance
of, or is attributable to, any neglect on the part of, any director, manager, secretary or other officer of the
company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence
and shall be liable to be proceeded against and punished accordingly.
Explanation.—For the purposes of this section, —
(a) “company” means anybody corporate and includes a firm or other association of individuals;
and
(b) “director”, in relation to a firm, means a partner in the firm.
142. Cognizance of offences.—2
[(1)] Notwithstanding anything contained in the Code of Criminal
Procedure, 1973 (2 of 1974),—
(a) no court shall take cognizance of any offence punishable under section 138 except upon a
complaint, in writing, made by the payee or, as the case may be, the holder in due course of the cheque;
(b) such complaint is made within one month of the date on which the cause of action arises under
clause (c) of the proviso to section 138:
3
[Provided that the cognizance of a complaint may be taken by the Court after the prescribed period, if the
the complainant satisfies the Court that he had sufficient cause for not making a complaint within such
period;]
(c) no court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall
try any offence punishable under section 138.].
4
[(2) The offence under section 138 shall be inquired into and tried only by a court within whose local
jurisdiction,—
(a) if the cheque is delivered for collection through an account, the branch of the bank where the
payee or holder in due course, as the case may be, maintains the account, is situated; or
(b) if the cheque is presented for payment by the payee or holder in due course, otherwise through an
account, the branch of the drawee bank where the drawer maintains the account, is situated.
1. Ins. by Act 55 of 2002, s. 8, (w.e.f. 6-2-2003).
2. Section 142 numbered as sub-section (1) thereof by Act 26 of 2015, s. 3 (w.e.f. 15-6-2015).
3. Ins. by Act 55 of 2002, s. 9, (w.e.f. 6-2-2003).
4. Ins. Act 26 of 2015, s. 3, (w.e.f. 15-6-2015).
29
Explanation.—For the purposes of clause (a), where a cheque is delivered for collection at any branch of
the bank of the payee or holder in due course, then, the cheque shall be deemed to have been delivered to the
branch of the bank in which the payee or holder in due course, as the case may be, maintains the account.]
1
[142A. Validation for transfer of pending cases.—(1) Notwithstanding anything contained in the Code
of Criminal Procedure, 1973 (2 of 1974) or any judgment, decree, order or direction of any court, all cases
transferred to the court having jurisdiction under sub-section (2) of section 142, as amended by the Negotiable
Instruments (Amendment) Ordinance, 2015 (Ord. 6 of 2015), shall be deemed to have been transferred under
this Act, as if that sub-section had been in force at all material times.
(2) Notwithstanding anything contained in sub-section (2) of section 142 or sub-section (1), where the
payee or the holder in due course, as the case may be, has filed a complaint against the drawer of a cheque in
the court having jurisdiction under sub-section (2) of section 142 or the case has been transferred to that court
under sub-section (1) and such complaint is pending in that court, all subsequent complaints arising out of
section 138 against the same drawer shall be filed before the same court irrespective of whether those cheques
were delivered for collection or presented for payment within the territorial jurisdiction of that court.
(3) If, on the date of the commencement of the Negotiable Instruments (Amendment)
Act, 2015 (26 of 2015), more than one prosecution filed by the same payee or holder in due course, as the case
may be, against the same drawer of cheques is pending before different courts, upon the said fact having been
brought to the notice of the court, such court shall transfer the case to the court having jurisdiction under subsection
(2) of section 142, as amended by the Negotiable Instruments (Amendment)
Ordinance, 2015 (Ord. 6 of 2015), before which the first case was filed and is pending, as if that sub-section
had been in force at all material times.]
2
[143. Power of Court to try cases summarily.—(1) Notwithstanding anything contained in the Code of
Criminal Procedure, 1973 (2 of 1974) all offences under this Chapter shall be tried by a Judicial Magistrate of
the first class or by a Metropolitan Magistrate and the provisions of sections 262 to 265 (both inclusive) of the
said Code shall, as far as may be, apply to such trials:
Provided that in the case of any conviction in a summary trial under this section, it shall be lawful for the
Magistrate to pass a sentence of imprisonment for a term not exceeding one year and an amount of fine
exceeding five thousand rupees:
Provided further that when at the commencement of, or in the course of, a summary trial under this
section, it appears to the Magistrate that the nature of the case is such that a sentence of imprisonment for a
term exceeding one year may have to be passed or that it is, for any other reason, undesirable to try the case
summarily, the Magistrate shall after hearing the parties, record an order to that effect and thereafter recall
any witness who may have been examined and proceed to hear or rehear the case in the manner provided by
the said Code.
(2) The trial of a case under this section shall, so far as practicable, consistently with the interests of
justice, be continued from day to day until its conclusion, unless the Court finds the adjournment of the trial
beyond the following day to be necessary for reasons to be recorded in writing.
(3) Every trial under this section shall be conducted as expeditiously as possible and an endeavour shall
be made to conclude the trial within six months from the date of filing of the complaint.
144. Mode of service of summons.—(1) Notwithstanding anything contained in the Code of Criminal
Procedure, 1973 (2 of 1974) and for the purposes of this Chapter, a Magistrate issuing a summons to an
accused or a witness may direct a copy of summons to be served at the place where such accused or witness
ordinarily resides or carries on business or personally works for gain, by speed post or by such courier
services as are approved by a Court of Session.
(2) Where an acknowledgment purporting to be signed by the accused or the witness or an endorsement
purported to be made by any person authorised by the postal department or the courier services that the accused
1. Ins. by Act 26 of 2015, s. 4, (w.e.f. 15-6-2015).
2. Ins. by Act 55 of 2002, s. 10, (w.e.f. 6-2-2003).
30
or the witness refused to take delivery of summons has been received, the Court issuing the summons may
declare that the summons has been duly served.
145. Evidence on affidavit.—(1) Notwithstanding anything contained in the Code of Criminal
Procedure, 1973 (2 of 1974), the evidence of the complainant may be given by him on affidavit and may,
subject to all just exceptions be read in evidence in any enquiry, trial or other proceeding under the said Code.
(2) The Court may, if it thinks fit, and shall, on the application of the prosecution or the accused, summon
and examine any person giving evidence on affidavit as to the facts contained therein.
146. Bank’s slip prima facie evidence of certain facts.—The Court shall, in respect of every proceeding
under this Chapter, on production of Bank's slip or memo having thereon the official mark denoting that the
cheque has been dishonoured, presume the fact of dishonour of such cheque, unless and until such fact is
disproved.
147. Offences to be compoundable.—Notwithstanding anything contained in the Code of Criminal
Procedure, 1973 (2 of 1974), every offence punishable under this Act shall be compoundable].
SCHEDULE.—[Enactments repealed].—Rep. by the Repealing and Amending Act, 1891 (12 of 1891),
s. 2 and Schedule I.

THE LIMITATION ACT, 1963

1
THE LIMITATION ACT, 1963
_________
ARRANGEMENT OF SECTIONS
__________
PART I
PRELIMINARY
SECTIONS
1. Short title, extent and commencement.
2. Definitions.
PART II
LIMITATION OF SUITS, APPEALS AND APPLICATIONS
3. Bar of limitation.
4. Expiry of prescribed period when court is closed.
5. Extension of prescribed period in certain cases.
6. Legal disability.
7. Disability of one of several persons.
8. Special exceptions.
9. Continuous running of time.
10. Suits against trustees and their representatives.
11. Suits on contracts entered into outside the territories to which the Act extends.
PART III
COMPUTATION OF PERIOD OF LIMITATION
12. Exclusion of time in legal proceedings.
13. Exclusion of time in cases where leave to sue or appeal as a pauper is applied for.
14. Exclusion of time of proceeding bona fide in court without jurisdiction.
15. Exclusion of time in certain other cases.
16. Effect of death on or before the accrual of the right to sue.
17. Effect of fraud or mistake.
18. Effect of acknowledgment in writing.
19. Effect of payment on account of debt or of interest on legacy.
20. Effect of acknowledgment or payment by another person.
21. Effect of substituting or adding new plaintiff or defendant.
22. Continuing breaches and torts.
23. Suits for compensation for acts not actionable without special damage.
24. Computation of time mentioned in instruments.
PART IV
ACQUISITION OF OWNERSHIP BY POSSESSION
25. Acquisition of easements by prescription.
26. Exclusion in favour of reversioner of servient tenement.
27. Extinguishment of right to property.
2
PART V
MISCELLANEOUS
SECTIONS
28. [Repealed.]
29. Savings.
30. Provision for suits, etc., for which the prescribed period is shorter than the period prescribed by
the Indian Limitation Act, 1908.
31. Provisions as to barred or pending suits, etc.
32. [Repealed.]
THE SCHEDULE.
3
THE LIMITATION ACT, 1963
ACT NO. 36 OF 1963
[5th October, 1963.]
An Act to consolidate and amend the law for the limitation of suits and other proceedings and for
purposes connected therewith.
BE it enacted by Parliament in the Fourteenth Year of the Republic of India as follows:—
PART I
PRELIMINARY
1. Short title, extent and commencement.—(1) This Act may be called the Limitation Act, 1963.
(2) It extends to the whole of India except the State of Jammu and Kashmir.
(3) It shall come into force on such date1
as the Central Government may, by notification in the
Official Gazette, appoint.
2. Definitions.—In this Act, unless the context otherwise requires,—
(a) “applicant” includes—
(i) a petitioner;
(ii) any person from or through whom an applicant derives his right to apply;
(iii) any person whose estate is represented by the applicant as executor, administrator or
other representative;
(b) “application” includes a petition;
(c) “bill of exchange” includes a hundi and a cheque;
(d) “bond” includes any instrument whereby a person obliges himself to pay money to another,
on condition that the obligation shall be void if a specified act is performed, or is not performed, as
the case may be;
(e) “defendant” includes—
(i) any person from or through whom a defendant derives his liability to be sued;
(ii) any person whose estate is represented by the defendant as executor, administrator or
other representative;
(f) “easement” includes a right not arising from contract, by which one person is entitled to
remove and appropriate for his own profit any part of the soil belonging to another or anything
growing in, or attached to, or subsisting upon, the land of another;
(g) “foreign country” means any country other than India;
(h) “good faith”—nothing shall be deemed to be done in good faith which is not done with due
care and attention;
(i) “plaintiff” includes—
(i) any person from or through whom a plaintiff derives his right to sue;
(ii) any person whose estate is represented by the plaintiff as executor, administrator or other
representative;
(j) “period of limitation” means the period of limitation prescribed for any suit, appeal or
application by the Schedule, and “prescribed period” means the period of limitation computed in
accordance with the provisions of this Act;
1. 1st January, 1964, vide notification No. S.O. 3118, dated 29th October, 1963, see Gazette of India, Part II, sec. 3 (ii).
Amended in West Bengal by W.B. Act 18 of 1977.
1st September, 1984, vide notification No. S.O. 647(C), in respect of the State of Sikkim dated 24th August, 1984, see
Gazette of India, Part II, sec. 3(ii).
4
(k) “promissory note” means any instrument whereby the maker engages absolutely to pay a
specified sum of money to another at a time therein limited, or on demand, or at sight;
(l) “suit” does not include an appeal or an application;
(m) “tort" means a civil wrong which is not exclusively the breach of a contract or the breach of a
trust;
(n) “trustee” does not include a benamidar, a mortgagee remaining in possession after the
mortgage has been satisfied or a person in wrongful possession without title.
PART II
LIMITATION OF SUITS, APPEALS AND APPLICATIONS
3. Bar of limitation.—(1) Subject to the provisions contained in sections 4 to 24 (inclusive), every
suit instituted, appeal preferred, and application made after the prescribed period shall be dismissed,
although limitation has not been set up as a defence.
(2) For the purposes of this Act,—
(a) a suit is instituted,—
(i) in an ordinary case, when the plaint is presented to the proper officer;
(ii) in the case of a pauper, when his application for leave to sue as a pauper is made; and
(iii) in the case of a claim against a company which is being wound up by the court, when the
claimant first sends in his claim to the official liquidator;
(b) any claim by way of a set off or a counter claim, shall be treated as a separate suit and shall be
deemed to have been instituted—
(i) in the case of a set off, on the same date as the suit in which the set off is pleaded;
(ii) in the case of a counter claim, on the date on which the counter claim is made in court;
(c) an application by notice of motion in a High Court is made when the application is presented
to the proper officer of that court.
4. Expiry of prescribed period when court is closed.—Where the prescribed period for any suit,
appeal or application expires on a day when the court is closed, the suit, appeal or application may be
instituted, preferred or made on the day when the court re-opens.
Explanation.—A court shall be deemed to be closed on any day within the meaning of this section if
during any part of its normal working hours it remains closed on that day.
5. Extension of prescribed period in certain cases.—Any appeal or any application, other than an
application under any of the provisions of Order XXI of the Code of Civil Procedure, 1908 (5 of 1908),
may be admitted after the prescribed period if the appellant or the applicant satisfies the court that he had
sufficient cause for not preferring the appeal or making the application within such period.
Explanation.—The fact that the appellant or the applicant was missed by any order, practice or
judgment of the High Court in ascertaining or computing the prescribed period may be sufficient cause
within the meaning of this section.
6. Legal disability.—(1) Where a person entitled to institute a suit or make an application for the
execution of a decree is, at the time from which the prescribed period is to be reckoned, a minor or insane,
or an idiot, he may institute the suit or make the application within the same period after the disability has
ceased, as would otherwise have been allowed from the time specified therefor in the third column of the
Schedule.
(2) Where such person is, at the time from which the prescribed period is to be reckoned, affected by
two such disabilities, or where, before his disability has ceased, he is affected by another disability, he
may institute the suit or make the application within the same period after both disabilities have ceased, as
would otherwise have been allowed from the time so specified.
5
(3) Where the disability continues up to the death of that person, his legal representative may institute
the suit or make the application within the same period after the death, as would otherwise have been
allowed from the time so specified.
(4) Where the legal representative referred to in sub-section (3) is, at the date of the death of the
person whom he represents, affected by any such disability, the rules contained sub-sections (1) and (2)
shall apply.
(5) Where a person under disability dies after the disability ceases but within the period allowed to
him under this section, his legal representative may institute the suit or make the application within the
same period after the death, as would otherwise have been available to that person had he not died.
Explanation.—For the purposes of this section, „minor‟ includes a child in the womb.
7. Disability of one of several persons.—Where one of several persons jointly entitled to institute a
suit or make an application for the execution of a decree is under any such disability, and a discharge can
be given without the concurrence of such person, time will run against them all; but, where no such
discharge can be given, time will not run as against any of them until one of them becomes capable of
giving such discharge without the concurrence of the others or until the disability has ceased.
Explanation I.—This section applies to a discharge from every kind of liability, including a liability
in respect of any immovable property.
Explanation II.—For the purposes of this section, the Manager of a Hindu undivided family governed
by the Mitakshara law shall be deemed to be capable of giving a discharge without the concurrence of the
other members of the family only if he is in management of the joint family property.
8. Special exceptions.—Nothing in section 6 or in section 7 applies to suits to enforce rights of
pre-emption, or shall be deemed to extend, for more than three years from the cessation of the disability
or the death of the person affected thereby, the period of limitation for any suit or application.
9. Continuous running of time.—Where once time has begun to run, no subsequent disability or
inability to institute a suit or make an application stops it:
Provided that, where letters of administration to the estate of a creditor have been granted to his
debtor, the running of the period of limitation for a suit to recover the debt shall be suspended while the
administration continues.
10. Suits against trustees and their representatives.—Notwithstanding anything contained in the
foregoing provisions of this Act, no suit against a person in whom property has become vested in trust for
any specific purpose, or against his legal representatives or assigns (not being assigns for valuable
consideration), for the purpose of following in his or their hands such property, or the proceeds thereof, or
for an account of such property or proceeds, shall be barred by any length of time.
Explanation.—For the purposes of this section any property comprised in a Hindu, Muslim or
Buddhist religious or charitable endowment shall be deemed to be property vested in trust for a specific
purpose and the manager of the property shall be deemed to be the trustee thereof.
11. Suits on contracts entered into outside the territories to which the Act extends.—(1) Suits
instituted in the territories to which this Act extends on contracts entered into in the State of Jammu and
Kashmir or in a foreign country shall be subject to the rules of limitation contained in this Act.
(2) No rule of limitation in force in the State of Jammu and Kashmir or in a foreign country shall be a
defence to a suit instituted in the said territories on a contract entered into in that State on in a foreign
country unless—
(a) the rule has extinguished the contract; and
(b) the parties were domiciled in that State or in the foreign country during the period prescribed
by such rule.
6
PART III
COMPUTATION OF PERIOD OF LIMITATION
12. Exclusion of time in legal proceedings.—(1) In computing the period of limitation for any suit,
appeal or application, the day from which such period is to be reckoned, shall be excluded.
(2) In computing the period of limitation for an appeal or an application for leave to appeal or for
revision or for review of a judgment, the day on which the judgment complained of was pronounced and
the time requisite for obtaining a copy of the decree, sentence or order appealed from or sought to be
revised or reviewed shall be excluded.
(3) Where a decree or order is appealed from or sought to be revised or reviewed, or where an
application is made for leave to appeal from a decree or order, the time requisite for obtaining a copy of
the judgment 1
*** shall also be excluded.
(4) In computing the period of limitation for an application to set aside an award, the time requisite
for obtaining a copy of the award shall be excluded.
Explanation.—In computing under this section the time requisite for obtaining a copy of a decree or
an order, any time taken by the court to prepare the decree or order before an application for a copy
thereof is made shall not be excluded.
13. Exclusion of time in cases where leave to sue or appeal as a pauper is applied for.—In
computing the period of limitation prescribed for any suit or appeal in any case where an application for
leave to sue or appeal as a pauper has been made and rejected, the time during which the applicant has
been prosecuting in good faith his application for such leave shall be excluded, and the court may, on
payment of the court fees prescribed for such suit or appeal, treat the suit or appeal as having the same
force and effect as if the court fees had been paid in the first instance.
14. Exclusion of time of proceeding bona fide in court without jurisdiction.—(1) In computing the
period of limitation for any suit the time during which the plaintiff has been prosecuting with due
diligence another civil proceeding, whether in a court of first instance or of appeal or revision, against the
defendant shall be excluded, where the proceeding relates to the same matter in issue and is prosecuted in
good faith in a court which, from defect of jurisdiction or other cause of a like nature, is unable to
entertain it.
(2) In computing the period of limitation for any application, the time during which the applicant has
been prosecuting with due diligence another civil proceeding, whether in a court of first instance or of
appeal or revision, against the same party for the same relief shall be excluded, where such proceeding is
prosecuted in good faith in a court which, from defect of jurisdiction or other cause of a like nature, is
unable to entertain it.
(3) Notwithstanding anything contained in rule 2 of Order XXIII of the Code of Civil
Procedure, 1908 (5 of 1908), the provisions of sub-section (1) shall apply in relation to a fresh suit
instituted on permission granted by the court under rule 1 of that Order, where such permission is granted
on the ground that the first suit must fail by reason of a defect in the jurisdiction of the court or other
cause of a like nature.
Explanation.—For the purposes of this section,—
(a) in excluding the time during which a former civil proceeding was pending, the day on which
that proceeding was instituted and the day on which it ended shall both be counted;
(b) a plaintiff or an applicant resisting an appeal shall be deemed to be prosecuting a proceeding;
(c) misjoinder of parties or of causes of action shall be deemed to be a cause of a like nature with
defect of jurisdiction.
1. The words “on which the decree or order is founded” omitted by Act 46 of 1999, s. 33 (w.e.f. 1-7-2002).
7
15. Exclusion of time in certain other cases.—(1) In computing the period of limitation of any suit
or application for the execution of a decree, the institution or execution of which has been stayed by
injunction or order, the time of the continuance of the injunction or order, the day on which it was issued
or made, and the day on which it was withdrawn, shall be excluded.
(2) In computing the period of limitation for any suit of which notice has been given, or for which the
previous consent or sanction of the Government or any other authority is required, in accordance with the
requirements of any law for the time being in force, the period of such notice or, as the case may be, the
time required for obtaining such consent or sanction shall be excluded.
Explanation.—In excluding the time required for obtaining the consent or sanction of the
Government or any other authority, the date on which the application was made for obtaining the consent
or sanction and the date of receipt of the order of the Government or other authority shall both be
counted.
(3) In computing the period of limitation for any suit or application for execution of a decree by any
receiver or interim receiver appointed in proceedings for the adjudication of a person as an insolvent or by
any liquidator or provisional liquidator appointed in proceedings for the winding up of a company, the
period beginning with the date of institution of such proceeding and ending with the expiry of three
months from the date of appointment of such receiver or liquidator, as the case may be, shall be excluded.
(4) In computing the period of limitation for a suit for possession by a purchaser at a sale in execution
of a decree, the time during which a proceeding to set aside the sale has been prosecuted shall be
excluded.
(5) In computing the period of limitation for any suit the time during which the defendant has been
absent from India and from the territories outside India under the administration of the Central
Government, shall be excluded.
16. Effect of death on or before the accrual of the right to sue.—(1) Where a person who would, if
he were living, have a right to institute a suit or make an application dies before the right accrues, or
where a right to institute a suit or make an application accrues only on the death of a person, the period of
limitation shall be computed from the time when there is a legal representative of the deceased capable of
instituting such suit or making such application.
(2) Where a person against whom, if he were living, a right to institute a suit or make an application
would have accrued dies before the right accrues, or where a right to institute a suit or make an
application against any person accrues on the death of such person, the period of limitation shall be
computed from the time when there is a legal representative of the deceased against whom the plaintiff
may institute such suit or make such application.
(3) Nothing in sub-section (1) or sub-section (2) applies to suits to enforce rights of pre-emption or to
suits for the possession of immovable property or of a hereditary office.
17. Effect of fraud or mistake.—(1) Where, in the case of any suit or application for which a period
of limitation is prescribed by this Act,—
(a) the suit or application is based upon the fraud of the defendant or respondent or his agent; or
(b) the knowledge of the right or title on which a suit or application is founded is concealed by
the fraud of any such person as aforesaid; or
(c) the suit or application is for relief from the consequences of a mistake; or
(d) where any document necessary to establish the right of the plaintiff or applicant has been
fraudulently concealed from him,
the period of limitation shall not begin to run until the plaintiff or applicant has discovered the fraud or
the mistake or could, with reasonable diligence, have discovered it; or in the case of a concealed
document, until the plaintiff or the applicant first had the means of producing the concealed document or
compelling its production:
8
Provided that nothing in this section shall enable any suit to be instituted or application to be made to
recover or enforce any charge against, or set aside any transaction affecting, any property which—
(i) in the case of fraud, has been purchased for valuable consideration by a person who was not a
party to the fraud and did not at the time of the purchase know, or have reason to believe, that any
fraud had been committed, or
(ii) in the case of mistake, has been purchased for valuable consideration subsequently to the
transaction in which the mistake was made, by a person who did not know, or have reason to believe,
that the mistake had been made, or
(iii) in the case of a concealed document, has been purchased for valuable consideration by a
person who was not a party to the concealment and, did not at the time of purchase know, or have
reason to believe, that the document had been concealed.
(2) Where a judgment-debtor has, by fraud or force, prevented the execution of a decree or order
within the period of limitation, the court may, on the application of the judgment-creditor made after the
expiry of the said period extend the period for execution of the decree or order:
Provided that such application is made within one year from the date of the discovery of the fraud or
the cessation of force, as the case may be.
18. Effect of acknowledgment in writing.—(1) Where, before the expiration of the prescribed
period for a suit or application in respect of any property or right, an acknowledgment of liability in
respect of such property or right has been made in writing signed by the party against whom such
property or right is claimed, or by any person through whom he derives his title or liability, a fresh period
of limitation shall be computed from the time when the acknowledgment was so signed.
(2) Where the writing containing the acknowledgment is undated, oral evidence may be given of the
time when it was signed; but subject to the provisions of the Indian Evidence Act, 1872 (1 of 1872), oral
evidence of its contents shall not be received.
Explanation.—For the purposes of this section,—
(a) an acknowledgment may be sufficient though it omits to specify the exact nature of the
property or right, or avers that the time for payment, delivery, performance or enjoyment has not yet
come or is accompanied by a refusal to pay, deliver, perform or permit to enjoy, or is coupled with a
claim to set off, or is addressed to a person other than a person entitled to the property or right,
(b) the word “signed” means signed either personally or by an agent duly authorised in this
behalf, and
(c) an application for the execution of a decree or order shall not be deemed to be an application
in respect of any property or right.
19. Effect of payment on account of debt or of interest on legacy.—Where payment on account of
a debt or of interest on a legacy is made before the expiration of the prescribed period by the person liable
to pay the debt or legacy or by his agent duly authorised in this behalf, a fresh period of limitation shall be
computed from the time when the payment was made:
Provided that, save in the case of payment of interest made before the 1st day of January, 1928, an
acknowledgment of the payment appears in the handwriting of, or in a writing signed by, the person
making the payment.
Explanation.—For the purposes of this section,—
(a) where mortgaged land is in the possession of the mortgagee, the receipt of the rent or produce
of such land shall be deemed to be a payment;
(b) “debt” does not include money payable under a decree or order of a court.
9
20. Effect of acknowledgment or payment by another person.—(1) The expression “agent duly
authorised in this behalf” in sections 18 and 19 shall, in the case of a person under disability, include his
lawful guardian, committee or manager or an agent duly authorised by such guardian, committee or
manager to sign the acknowledgment or make the payment.
(2) Nothing in the said sections renders one of several joint contractors, partners, executors or
mortgagees chargeable by reason only of a written acknowledgment signed by, or of a payment made by,
or by the agent of, any other or others of them.
(3) For the purposes of the said sections,—
(a) an acknowledgment signed or a payment made in respect of any liability by, or by the duly
authorised agent of, any limited owner of property who is governed by Hindu law, shall be a
valid acknowledgment or payment, as the case may be, against a reversioner succeeding to such
liability; and
(b) where a liability has been incurred by, or on behalf of a Hindu undivided family as such, an
acknowledgment or payment made by, or by the duly authorised agent of, the manager of the family
for the time being shall be deemed to have been made on behalf of the whole family.
21. Effect of substituting or adding new plaintiff or defendant.—(1) Where after the institution of
a suit, a new plaintiff or defendant is substituted or added, the suit shall, as regards him, be deemed to
have been instituted when he was so made a party:
Provided that where the court is satisfied that the omission to include a new plaintiff or defendant was
due to a mistake made in good faith it may direct that the suit as regards such plaintiff or defendant shall
be deemed to have been instituted on any earlier date.
(2) Nothing in sub-section (1) shall apply to a case where a party is added or substituted owing to
assignment or devolution of any interest during the pendency of a suit or where a plaintiff is made a
defendant or a defendant is made a plaintiff.
22. Continuing breaches and torts.—In the case of a continuing breach of contract or in the case of
a continuing tort, a fresh period of limitation begins to run at every moment of the time during which the
breach or the tort, as the case may be, continues.
23. Suits for compensation for acts not actionable without special damage.—In the case of a suit
for compensation for an act which does not give rise to a cause of action unless some specific injury
actually results therefrom, the period of limitation shall be computed from the time when the injury
results.
24. Computation of time mentioned in instruments.—All instruments shall for the purposes of this
Act be deemed to be made with reference to the Gregorian calendar.
PART IV
ACQUISITION OF OWNERSHIP BY POSSESSION
25. Acquisition of easements by prescription.—(1) Where the access and use of light or air to and
for any building have been peaceably enjoyed therewith as an easement, and as of right, without
interruption, and for twenty years, and where any way or watercourse or the use of any water or any other
easement (whether affirmative or negative) has been peaceably and openly enjoyed by any person
claiming title thereto as an easement and as of right without interruption and for twenty years, the right to
such access and use of light or air, way, watercourse, use of water, or other easement shall be absolute
and indefeasible.
(2) Each of the said periods of twenty years shall be taken to be a period ending within two years next
before the institution of the suit wherein the claim to which such period relates is contested.
(3) Where the property over which a right is claimed under sub-section (1) belongs to the
Government that sub-section shall be read as if for the words “twenty years” the words “thirty years”
were substituted.
10
Explanation.—Nothing is an interruption within the meaning of this section, unless where there is an
actual discontinuance of the possession or enjoyment by reason of an obstruction by the act of some
person other than the claimant, and unless such obstruction is submitted to or acquiesced in for one year
after the claimant has notice thereof and of the person making or authorising the same to be made.
26. Exclusion in favour of reversioner of serivent tenement.—Where any land or water upon, over
or from, which any easement has been enjoyed or derived has been held under or by virtue of any interest
for life or in terms of years exceeding three years from the granting thereof, the time of the enjoyment of
such easement during the continuance of such interest or term shall be excluded in the computation of the
period twenty years in case the claim is, within three years next after the determination of such interest or
term resisted by the person entitled on such determination to the said land or water.
27. Extinguishment of right to property.—At the determination of the period hereby limited to any
person for instituting a suit for possession of any property, his right to such property shall be
extinguished.
PART V
MISCELLANEOUS
28. [Amendment of certain Acts.]—Rep. by Repealing and Amending Act, 1974 (56 of 1974), s. 2 and
the First Schedule (w.e.f. 20-12-1974).
29. Savings.—(1) Nothing in this Act shall affect section 25 of the Indian Contract
Act, 1872 (9 of 1872).
(2) Where any special or local law prescribes for any suit, appeal or application a period of limitation
different from the period prescribed by the Schedule, the provisions of section 3 shall apply as if such
period were the period prescribed by the Schedule and for the purpose of determining any period of
limitation prescribed for any suit, appeal or application by any special or local law, the provisions
contained in sections 4 to 24 (inclusive) shall apply only in so far as, and to the extent to which, they are
not expressly excluded by such special or local law.
(3) Save as otherwise provided in any law for the time being in force with respect to marriage and
divorce, nothing in this Act shall apply to any suit or other proceeding under any such law.
(4) Sections 25 and 26 and the definition of “easement” in section 2 shall not apply to cases arising in
the territories to which the Indian Easements Act, 1882 (5 of 1882), may for the time being extend.
30. Provision for suits, etc., for which the prescribed period is shorter than the period
prescribed by the Indian Limitation Act, 1908.—Notwithstanding anything contained in this Act,—
(a) any suit for which the period of limitation is shorter than the period of limitation prescribed by
the Indian Limitation Act, 1908 (9 of 1908), may be instituted within a period of 1
[seven years] next
after the commencement of this Act or within the period prescribed for such suit by the Indian
Limitation Act, 1908 (9 of 1908), whichever period expires earlier:
2
[Provided that if in respect of any such suit, the said period of seven years expires earlier than
the period of limitation prescribed therefor under the Indian Limitation Act, 1908 (9 of 1908) and the
said period of seven years together with so much of the period of limitation in respect of such suit
under the Indian Limitation Act, 1908 (9 of 1908), as has already expired before the commencement
of this Act is shorter than the period prescribed for such suit under this Act, then, the suit may be
instituted within the period of limitation prescribed therefor under this Act;]
(b) any appeal or application for which the period of limitation is shorter than the period of
limitation prescribed by the Indian Limitation Act, 1908 (9 of 1908), may be preferred or made within
a period of ninety days next after the commencement of this Act or within the period prescribed for
such appeal or application by the Indian Limitation Act, 1908, whichever period expires earlier.
1. Subs. by Act 10 of 1969, s. 2, for “five years” (w.e.f. 26-3-1969).
2. Ins. by s. 2, ibid. (w.e.f. 26-3-1969).
11
31. Provisions as to barred or pending suits, etc.—Nothing in this Act shall,—
(a) enable any suit, appeal or application to be instituted, preferred or made, for which the period
of limitation prescribed by the Indian Limitation Act, 1908 (9 of 1908), expired before the
commencement of this Act; or
(b) affect any suit, appeal or application instituted, preferred or made before, and pending at, such
commencement.
32. [Repeal.]—Rep. by Repealing and Amending Act, 1974 (56 of 1974), s. 2 and the First Schedule
(w.e.f. 20-12-1974).
12
THE SCHEDULE
(PERIODS OF LIMITATION)
[See sections 2(j) and 3]
FIRST DIVISION—SUITS
Description of suit Period of limitation Time from which period begins to run
PART I.—SUITS RELATING TO ACCOUNTS
1. For the balance due on a mutual,
open and current account, where
there have been reciprocal
demands between the parties.
Three years. The close of the year in which the last
item admitted or proved is entered in
the account; such year to be computed
as in the account.
2. Against a factor for an account. Three years. When the account is, during the
continuance of the agency, demanded
and refused or, where no such demand
is made, when the agency terminates.
3. By a principal against his agent for
movable property received by the
latter and not accounted for.
Three years. When the account is, during the
continuance of the agency, demanded
and refused or, where no such demand
is made, when the agency terminates.
4. Other suits by principals against
agents for neglect or misconduct.
Three years. When the neglect or misconduct becomes
known to the plaintiff.
5. For an account and a share of the
profits of a dissolved partnership.
Three years. The date of the dissolution.
PART II.—SUITS RELATING TO CONTRACTS
6. For a seaman‟s wages Three years. The end of the voyage during which the
wages are earned.
7. For wages in the case of any other
person.
Three years. When the wages accrue due.
8. For the price of food or drink sold
by the keeper of a hotel, tavern
or lodging-house.
Three years. When the food or drink is delivered.
9. For the price of lodging. Three years. When the price becomes payable.
10. Against a carrier for compensation
for losing or injuring goods.
Three years. When the loss or injury occurs.
11. Against a carrier for compensation
for non-delivery of, or delay in
delivering, goods.
Three years. When the goods ought to be delivered.
12. For the hire of animals, vehicles,
boats or household furniture.
Three years. When the hire becomes payable.
13. For the balance of money advanced
in payment of goods to be
delivered.
Three years. When the goods ought to be delivered.
14. For the price of goods sold and
delivered where no fixed period
of credit is agreed upon.
Three years. The date of the delivery of the goods.
15. For the price of goods sold and
delivered to be paid for after the
expiry of a fixed period of
credit.
Three years. When the period of credit expires.
13
Description of suit Period of limitation Time from which period begins to run
16. For the price of goods sold and
delivered to be paid for by a bill
of exchange, no such bill being
given.
Three years. When the period of the proposed bill
elapses.
17. For the price of trees or growing
crops sold by the plaintiff to the
defendant where no fixed period
of credit is agreed upon.
Three years. The date of the sale.
18. For the price of work done by the
plaintiff for the defendant at his
request, where no time has been
fixed for payment.
Three years. When the work is done.
19. For money payable for money lent. Three years. When the loan is made.
20. Like suit when the lender has given
a cheque for the money.
Three years. When the cheque is paid.
21. For money lent under an agreement
that it shall be payable on
demand.
Three years. When the loan is made.
22. For money deposited under an
agreement that it shall be
payable on demand, including
money of a customer in the
hands of his banker so payable.
Three years. When the demand is made.
23. For money payable to the plaintiff
for money paid for the
defendant.
Three years. When the money is paid.
24. For money payable by the
defendant to the plaintiff for
money received by the
defendant, for the plaintiff's use.
Three years. When the money is received.
25. For money payable for interest
upon money due from the
defendant to the plaintiff.
Three years. When the interest becomes due.
26. For money payable to the plaintiff
for money found to be due from
the defendant to the plaintiff on
accounts stated between them.
Three years. When the accounts are stated in writing
signed by the defendant or his agent
duly authorised in this behalf, unless
where the debt is, by a simultaneous
agreement in writing signed as
aforesaid, made payable at a future
time, and then when that time arrives.
27. For compensation for breach of a
promise to do anything at a
specified time, or upon the
happening of a specified
contingency.
Three years. When the time specified arrives or the
contingency happens.
28. On a single bond, where a day is
specified for payment.
Three years. The day so specified.
29. On a single bond, where no such
day is specified.
Three years. The date of executing the bond.
30. On a bond subject to a condition. Three years. When the condition is broken.
14
Description of suit Period of limitation Time from which period begins to run
31. On a bill of exchange or promissory
note payable at a fixed time after
date.
Three years. When the bill or note falls due.
32. On a bill of exchange payable at
sight, or after sight, but not at a
fixed time.
Three years. When the bill is presented.
33. On a bill of exchange accepted
payable at a particular place.
Three years. When the bill is presented at that place.
34. On a bill of exchange or promissory
note payable at a fixed time after
sight or after demand.
Three years. When the fixed time expires.
35. On a bill of exchange or promissory
note payable on demand and not
accompanied by any writing
restraining or postponing the
right to sue.
Three years. The date of the bill or note.
36. On a promissory note or bond
payable by instalments.
Three years. The expiration of the first term of
payment as to the part then payable;
and for the other parts, the expiration
of the respective terms of payment.
37. On a promissory note or bond
payable by instalments, which
provides that, if default be made
in payment of one or more
instalments, the whole shall be
due.
Three years. When the default is made, unless where
the payee or obligee waives the
benefit of the provision and then
when fresh default is made in respect
of which there is no such waiver.
38. On a promissory note given by the
maker to a third person to be
delivered to the payee after a
certain event should happen.
Three years. The date of the delivery to the payee.
39. On a dishonoured foreign bill
where protest has been made
and notice given.
Three years. When the notice is given.
40. By the payee against the drawer
of a bill of exchange, which
has been dishonoured by
non-acceptance.
Three years. The date of the refusal to accept.
41. By the acceptor of an
accommodation-bill against the
drawer.
Three years. When the acceptor pays the amount of the
bill.
42. By a surety against the principal
debtor.
Three years. When the surety pays the creditor.
43. By a surety against a co-surety. Three years. When the surety pays anything in excess
of his own share.
44. (a) On a policy of insurance when
the sum insured is payable after
proof of the death has been
given to or received by the
insurers.
Three years. The date of the death of the deceased, or
where the claim on the policy is
denied, either partly or wholly, the
date of such denial.
(b) On a policy of insurance when
the sum insured is payable after
proof of the loss has been given
to or received by the insurers.
Three years. The date of the occurrence causing the
loss, or where the claim on the policy
is denied, either partly or wholly, the
date of such denial.
15
Description of suit Period of limitation Time from which period begins to run
45. By the assured to recover premia
paid under a policy voidable at
the election of the insurers.
Three years. When the insurers elect to avoid the
policy.
46. Under the Indian Succession
Act, 1925 (39 of 1925), section
360 or section 361, to compel a
refund by a person to whom an
executor or administrator has
paid a legacy or distributed
assets.
Three years. The date of the payment or distribution.
47. For money paid upon an existing
consideration which afterwards
fails.
Three years. The date of the failure.
48. For contribution by a party who has
paid the whole or more than his
share of the amount due under a
joint decree, or by a sharer in a
joint estate who has paid the
whole or more than his share of
the amount of revenue due from
himself and his co-sharers.
Three years. The date of the payment in excess of the
plaintiff‟s own share.
49. By a co-trustee to enforce against
the estate of a deceased trustee a
claim for contribution.
Three years. When the right to contribution accrues.
50. By the manager of a joint estate of
an undivided family for
contribution, in respect of a
payment made by him on
account of the estate.
Three years. The date of the payment.
51. For the profits of immovable
property belonging to the
plaintiff which have been
wrongfully received by the
defendant.
Three years. When the profits are received.
52. For arrears of rent. Three years. When the arrears become due.
53. By a vendor of immovable property
for personal payment of unpaid
purchase-money.
Three years. The time fixed for completing the sale,
or (where the title is accepted after
the time fixed for completion) the
date of the acceptance.
54. For specific performance of a
contract.
Three years. The date fixed for the performance, or, if
no such date is fixed, when the
plaintiff has notice that performance
is refused.
55. For compensation for the breach of
any contract, express or implied
not herein specially provided
for.
Three years. When the contract is broken or (where
there are successive breaches) when
the breach in respect of which the
suit is instituted occurs or (where the
breach is continuing) when it ceases.
16
Description of suit Period of limitation Time from which period begins to run
PART III.—SUITS RELATING TO DECLARATIONS
56. To declare the forgery of an
instrument issued or registered.
Three years. When the issue or registration becomes
known to the plaintiff.
57. To obtain a declaration that an
alleged adoption is invalid, or
never, in fact, took place.
Three years. When the alleged adoption becomes
known to the plaintiff.
58. To obtain any other declaration. Three years. When the right to sue first accrues.
PART IV.—SUITS RELATING TO DECREES AND INSTRUMENTS
59. To cancel or set aside an instrument
or decree or for the rescission of
a contract.
Three years. When the facts entitling the plaintiff to
have the instrument or decree
cancelled or set aside or the contract
rescinded first become known to him.
60. To set aside a transfer of property
made by the guardian of a
ward—
(a) by the ward who has attained
majority;
Three years. When the ward attains majority.
(b) by the ward‟s legal
representative—
(i) when the ward dies within
three years from the date of
attaining majority.
Three years. When the ward attains majority.
(ii) when the ward dies before
attaining majority.
Three years. When the ward dies.
PART V.—SUITS RELATING TO IMMOVABLE PROPERTY
61. By a mortgagor—
(a) to redeem or recover
possession of immovable
property mortgaged;
Thirty years. When the right to redeem or to recover
possession accrues.
(b) to recover possession of
immovable property mortgaged
and afterwards transferred by
the mortgagee for a valuable
consideration;
Twelve years. When the transfer becomes known to the
plaintiff.
(c) to recover surplus collections
received by the mortgagee after
the mortgage has been
satisfied.
Three years. When the mortgagor re-enters on the
mortgaged property.
62. To enforce payment of money
secured by a mortgage or
otherwise charged upon
immovable property.
Twelve years. When the money sued for becomes due.
63. By a mortgagee—
(a) for foreclosure; Thirty years. When the money secured by the mortgage
becomes due.
(b) for possession of immovable
property mortgaged.
Twelve years. When the mortgagee becomes entitled to
possession.
17
Description of suit Period of limitation Time from which period begins to run
64. For possession of immovable
property based on previous
possession and not on title, when
the plaintiff while in possession
of the property has been
dispossessed.
Twelve years. The date of dispossession.
65. For possession of immovable
property or any interest therein
based on title.
Explanation.—For the purposes of
this article—
(a) where the suit is by a
remainderman, a reversioner
(other than a landlord) or a
devisee, the possession of the
defendant shall be deemed to
become adverse only when the
estate of the remainderman,
reversioner or devisee, as the
case may be, falls into
possession;
(b) where the suit is by a Hindu
or Muslim entitled to the
possession of immovable
property on the death of a
Hindu or Muslim female, the
possession of the defendant
shall be deemed to become
adverse only when the female
dies;
(c) where the suit is by
a purchaser at a sale in
execution of a decree when the
judgment-debtor was out of
possession at the date of the
sale, the purchaser shall be
deemed to be a representative
of the judgment-debtor who
was out of possession.
Twelve years. When the possession of the defendant
becomes adverse to the plaintiff.
66. For possession of immovable
property when the plaintiff has
become entitled to possession by
reason of any forfeiture or breach
of condition.
Twelve years. When the forfeiture is incurred or the
condition is broken.
67. By a landlord to recover possession
from a tenant.
Twelve years. When the tenancy is determined.
PART VI.—SUITS RELATING TO MOVABLE PROPERTY
68. For specific movable property lost,
or acquired by theft, or dishonest
misappropriation or conversion.
Three years. When the person having the right to the
possession of the property first learns
in whose possession it is.
69. For other specific movable property. Three years. When the property is wrongfully taken.
70. To recover movable property
deposited or pawned from a
depositary or pawnee.
Three years. The date of refusal after demand.
18
Description of suit Period of
limitation
Time from which period begins to run
71. To recover movable property
deposited or pawned, and
afterwards bought from the
depository or pawnee for a
valuable consideration.
Three years. When the sale becomes known to the
plaintiff.
PART VII.—SUITS RELATING TO TORT
72. For compensation for doing or for
omitting to do an act alleged to
be in pursuance of any enactment
in force for the time being in the
territories to which this Act
extends.
One year. When the act or omission takes place.
73. For compensation for false
imprisonment.
One year. When the imprisonment ends.
74. For compensation for a malicious
prosecution.
One year. When the plaintiff is acquitted or the
prosecution is otherwise terminated.
75. For compensation for libel. One year. When the libel is published.
76. For compensation for slander. One year. When the words are spoken, or, if the
words are not actionable in
themselves, when the special damage
complained of results.
77. For compensation for loss of service
occasioned by the seduction of
the plaintiff‟s servant or
daughter.
One year. When the loss occurs.
78. For compensation for inducing a
person to break a contract with
the plaintiff.
One year. The date of the breach.
79. For compensation for an illegal,
irregular or excessive distress.
One year. The date of the distress.
80. For compensation for wrongful
seizure of movable property
under legal process.
One year. The date of the seizure.
81. By executors, administrators or
representatives under the Legal
Representatives‟ Suits Act, 1855
(12 of 1855).
One year. The date of the death of the person
wronged.
82. By executors, administrators or
representatives under the Indian
Fatal Accidents Act, 1855 (13 of
1855).
Two years. The date of the death of the person killed.
83. Under the Legal Representatives‟
Suits Act, 1855 (12 of 1855),
against an executor, an
administrator or any other
representative.
Two years. When the wrong complained of is done.
84. Against one who, having a right to
use property for specific
purposes, perverts it to other
purposes.
Two years. When the perversion first becomes known
to the person injured thereby.
19
Description of suit Period of limitation Time from which period begins to run
85. For compensation for obstructing a
way or a water-course.
Three years. The date of the obstruction.
86. For compensation for diverting a
water-course.
Three years. The date of the diversion.
87. For compensation for trespass upon
immovable property.
Three years. The date of the trespass.
88. For compensation for infringing
copyright or any other exclusive
privilege.
Three years. The date of the infringement.
89. To restrain waste. Three years. When the waste begins.
90. For compensation for injury caused
by an injunction wrongfully
obtained.
Three years. When the injunction ceases.
91. For compensation,—
(a) for wrongfully taking
or detaining any specific
movable property lost, or
acquired by theft, or dishonest
misappropriation, or conversion;
Three years. When the person having the right to the
possession of the property first learns
in whose possession it is.
(b) for wrongfully taking or injuring
or wrongfully detaining any other
specific movable property.
Three years. When the property is wrongfully taken or
injured, or when the detainer‟s
possession becomes unlawful.
PART VIII.—SUITS RELATING TO TRUSTS AND TRUST PROPERTY
92. To recover possession of immovable
property conveyed or bequeathed
in trust and afterwards transferred
by the trustee for a valuable
consideration.
Twelve years. When the transfer becomes known to the
plaintiff.
93. To recover possession of movable
property conveyed or bequeathed
in trust and afterwards transferred
by the trustee for a valuable
consideration.
Three years. When the transfer becomes known to the
plaintiff.
94. To set aside a transfer of immovable
property comprised in a Hindu,
Muslim or Buddhist religious or
charitable endowment, made by a
manager thereof for a valuable
consideration.
Twelve years. When the transfer becomes known to the
plaintiff.
95. To set aside a transfer of movable
property comprised in a Hindu,
Muslim or Buddhist religious or
charitable endowment, made by a
manager thereof for a valuable
consideration.
Three years. When the transfer becomes known to the
plaintiff.
96. By the manager of Hindu, Muslim or
Buddhist religious or charitable
endowment to recover possession
of movable or immovable
properly comprised in the
endowment which has been
transferred by a previous
manager for a valuable
consideration.
Twelve years. The date of death, resignation or removal
of the transferor or the date of
appointment of the plaintiff as
manager of the endowment,
whichever is later.
20
1. Subs. by Act 52 of 1964, s. 3 and the Second Schedule, for “an order under rule 63 or rule 103,” (w.e.f. 29-12-1964).
Description of suit Period of limitation Time from which period begins to run
PART IX.—SUITS RELATING TO MISCELLANEOUS MATTERS
97. To enforce a right of pre-emption
whether the right is founded on
law or general usage or on
special contract.
One year. When the purchaser take under the
sale sought to be impeached,
physical possession of the whole or part
of the property sold, or, where the
subject matter of the sale does not admit
of physical possession of the whole or
part of the property, when the
instrument of sale is registered.
98. By a person against whom
1
[an order referred to in rule 63
or in rule 103] of Order XXI of
the Code of Civil Procedure,
1908 (5 of 1908), or an order
under section 28 of the
Presidency Small Cause Courts
Act, 1882 (15 of 1882), has
been made, to establish the
right which he claims to the
property comprised in the
order.
One year. The date of the final order.
99. To set aside a sale by a civil or
revenue court or a sale for
arrears of Government revenue
or for any demand recoverable
as such arrears.
One year. When the sale is confirmed or would
otherwise have become final and
conclusive had no such suit been
brought.
100. To alter or set aside any decision
or order of a civil court in any
proceeding other than a suit or
any act or order of an officer of
Government in his official
capacity.
One year. The date of the final decision or order by the
court or the date of the act or order of
the officer, as the case may be.
101. Upon a judgment, including a
foreign judgment, or a
recognisance.
Three years. The date of the judgment or recognisance.
102. For property which the plaintiff has
conveyed while insane.
Three years. When the plaintiff is restored to sanity
and has knowledge of the conveyance.
103. To make good out of the general
estate of a deceased trustee the
loss occasioned by a breach of
trust.
Three years. The date of the trustee's death or if the
loss has not then resulted, the date of
the loss.
104. To establish a periodically
recurring right.
Three years. When the plaintiff is first refused the
enjoyment of the right.
105. By a Hindu for arrears of
maintenance.
Three years. When the arrears are payable.
106. For a legacy or for a share of a
residur bequeathed by a testator
or for a distributive share of the
property of an intestate against
an executor or an administrator
or some other person legally
charged with the duty of
distributing the estate.
Twelve years. When the legacy or share becomes
payable or deliverable.
21
Description of suit Period of limitation Time from which period begins to run
107. For possession of a hereditary
office.
Explanation.—A hereditary office
is possessed when the properties
thereof are usually received, or
(if there are no properties) when
the duties thereof are usually
performed.
Twelve years. When the defendant takes possession of
the office adversely to the plaintiff.
108. Suit during the life of a Hindu or
Muslim female by a Hindu or
Muslim who, if the female died
at the date of instituting the suit,
would be entitled to the
possession of land, to have an
alienation of such land made by
the female declared to be void
except for her life or until her
re-marriage.
Twelve years. The date of the alienation.
109. By a Hindu governed by
Mitakshara law to set aside his
father‟s alienation of ancestral
property.
Twelve years. When the alienee takes possession of the
property.
110. By a person excluded from a joint
family property to enforce a
right to share therein.
Twelve years. When the exclusion becomes known to
the plaintiff.
111. By or on behalf of any local
authority for possession of any
public street or road or any part
thereof from which it has been
dispossessed or of which it has
discontinued the possession.
Thirty years. The date of the dispossession or
discontinuance.
112. Any suit (except a suit before the
Supreme Court in the exercise of
its original jurisdiction) by or on
behalf of the Central
Government or any State
Government, including the
Government of the State of
Jammu and Kashmir.
Thirty years. When the period of limitation would
begin to run under this Act against a
like suit by a private person.
PART X.—SUITS FOR WHICH THERE IS NO PRESCRIBED PERIOD
113. Any suit for which no period of
limitation is provided elsewhere
in this Schedule.
Three years. When the right to sue accrues.
SECOND DIVISION—APPEALS
114. Appeal from an order of
acquittal,—
(a) under sub-section (1) or subsection
(2) of section 417 of
the Code of Criminal
Procedure, 1898 (5 of 1898);
Ninety days. The date of the order appealed from.
(b) under sub-section (3) of
section 417 of that Code.
Thirty days. The date of the grant of special leave.
22
Description of suit Period of limitation Time from which period begins to run
115. Under the Code of Criminal
Procedure, 1898 (5 of 1898)—
(a) from a sentence of death
passed by a court of session or
by a High Court in the
exercise of its original
criminal jurisdiction;
Thirty days. The date of the sentence.
(b) from any other sentence or
any order not being an order
of acquittal—
(i) to the High Court Sixty days. The date of the sentence or order.
(ii) to any other court Thirty days. The date of the sentence or order.
116. Under the Code of Civil Procedure,
1908 (5 of 1908)—
(a) to a High Court from any
decree or order.
Ninety days. The date of the decree or order.
(b) to any other court from any
decree or order.
Thirty days. The date of the decree or order.
117. From a decree or order of any High
Court to the same Court.
Thirty days. The date of the decree or order.
THIRD DIVISION—APPLICATIONS
PART I.—APPLICATIONS IN SPECIFIED CASES
118. For leave to appear and defend a
suit under summary
procedure.
Ten days. When the summons is served.
119. Under the Arbitration Act, 1940
(10 of 1940),—
(a) for the filing in court of an
award;
Thirty days. The date of service of the notice of the
making of the award;
(b) for setting aside an award
or getting an award remitted
for reconsideration.
Thirty days. The date of service of the notice of the
filing of the award.
120. Under the Code of Civil
Procedure, 1908 (5 of 1908),
to have the legal
representative of a deceased
plaintiff or appellant or of a
deceased defendant or
respondent, made a party.
Ninety days. The date of death of the plaintiff,
appellant, defendant or respondent, as
the case may be.
121. Under the same Code for an order
to set aside an abatement.
Sixty days. The date of abatement.
122. To restore a suit or appeal or
application for review or
revision dismissed for default
of appearance or for want of
prosecution or for failure to
pay costs of service of process
or to furnish security for costs.
Thirty days. The date of dismissal.
23
1. Subs. by Act 104 of 1976, s. 98, for “Thirty days” (w.e.f. 9-9-1976).
Description of suit Period of limitation Time from which period begins to run
123. To set aside a decree passed ex
parte or to rehear an appeal
decreed or heard ex parte.
Explanation.—For the purpose of
this article, substituted service
under rule 20 of Order V of
the Code of Civil Procedure,
1908 (5 of 1908) shall not be
deemed to be due service.
Thirty days. The date of the decree or where the
summons or notice was not duly
served, when the applicant had
knowledge of the decree.
124. For a review of judgment by a
court other than the Supreme
Court.
Thirty days. The date of the decree or order.
125. To record an adjustment or
satisfaction of a decree.
Thirty days. When the payment or adjustment is made.
126. For the payment of the amount of
a decree by instalments.
Thirty days. The date of the decree.
127. To set aside a sale in execution
of a decree, including any
such application by a
judgment-debtor.
1
[Sixty days]. The date of the sale.
128. For possession by one
dispossessed of immovable
property and disputing the
right of the decree-holder or
purchaser at a sale in
execution of a decree.
Thirty days. The date of the dispossession.
129. For possession after removing
resistance or obstruction to
delivery of possession of
immovable property decreed
or sold in execution of a
decree.
Thirty days. The date of resistance or obstruction.
130. For leave to appeal as a pauper—
(a) to the High Court; Sixty days. The date of decree appealed from.
(b) to any other court. Thirty days. The date of decree appealed from.
131. To any court for the exercise of
its powers of revision under
the Code of Civil Procedure,
1908 (5 of 1908), or the Code
of Criminal Procedure, 1898
(5 of 1898).
Ninety days. The date of the decree or order or
sentence sought to be revised.
132. To the High Court for a
certificate of fitness to appeal
to the Supreme Court under
clause (1) of article 132,
article 133 or sub-clause (c) of
clause (1) of article 134 of the
Constitution or under any
other law for the time being in
force.
Sixty days. The date of the decree, order or sentence.
24
1. Subs. by Act 53 of 1964, s. 3 and the Second Schedule, for “Where” (w.e.f. 12-12-1964.)
Description of suit Period of limitation Time from which period begins to run
133. To the Supreme Court for special
leave to appeal,—
(a) in a case involving death
sentence;
Sixty days. The date of the judgment final order or
sentence.
(b) in a case where leave to
appeal was refused by the
High Court;
Sixty days. The date of the order of refusal.
(c) in any other case. Ninety days. The date of the judgment or order.
134. For delivery of possession by a
purchaser of immovable
property at a sale in execution
of a decree.
One year. When the sale becomes absolute.
135. For the enforcement of a decree
granting a mandatory
injunction.
Three years. The date of the decree or where a date is
fixed for performance, such date.
136. For the execution of any decree
(other than a decree granting a
mandatory injunction) or
order of any civil court.
Twelve years.
1
[When] the decree or order becomes
enforceable or where the decree or any
subsequent order directs any payment
of money or the delivery of any
property to be made at a certain date or
at recurring periods, when default in
making the payment or delivery in
respect of which execution is sought,
takes place:
Provided that an application for the
enforcement or execution of a decree
granting a perpetual injunction shall
not be subject to any period of
limitation.
PART II—OTHER APPLICATION
137. Any other application for which
no period of limitation is
provided elsewhere in this
Division.
Three years. When the right to apply accrues.