Section 101 NI Act: Contents of protest
Negotiable Instruments Act, 1881
Section 101 NI Act at a Glance
Section 101 NI Act lists the six particulars that a protest under Section 100 NI Act must contain and explains how a notary public may demand payment, acceptance, or better security.
Section 101 NI Act Bare Act Text
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.
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.
Amendments to this section
- Ins. by Act 2 of 1885, s. 5.
Section 101 NI Act in Simple Words
Section 101 NI Act sets out the mandatory contents of a protest certificate made under Section 100 NI Act and specifies how the notary public may make the required demand.
Under Section 101(a) and (b) NI Act, the protest must contain either the instrument itself or a literal transcript of the instrument and everything written or printed on it, along with the name of the person for whom and the name of the person against whom the instrument has been protested.
Under Section 101(c) and (d) NI Act, the protest must state that payment, acceptance, or better security (as the case may be) was demanded of that person by the notary public, together with the terms of the person's answer, if any, or a statement that the person gave no answer, or that the person could not be found. It must also record the place and time of dishonour when the note or bill has been dishonoured, and the place and time of refusal when better security has been refused.
Under Section 101(e) and (f) NI Act, the protest must contain the subscription of the notary public making the protest, and, in the event of an acceptance for honour or a payment for honour, the name of the person by whom, the name of the person for whom, and the manner in which that acceptance or payment was offered and effected.
Under the concluding paragraph of Section 101 NI Act, a notary public may make the demand mentioned in Section 101(c) NI Act in person, through the notary public's clerk, or, where authorized by agreement or usage, by registered letter. Act 2 of 1885 inserted this concluding paragraph.
When Section 101 NI Act Applies
- The instrument itself, or a literal transcript of the instrument and everything written or printed on it (Section 101(a) NI Act).
- The name of the person for whom and against whom the instrument has been protested (Section 101(b) NI Act).
- A statement that the notary public demanded payment, acceptance, or better security (in person, by clerk, or where authorized by agreement or usage, by registered letter), and the person's answer, or that the person gave no answer or could not be found (Section 101(c) NI Act).
- The place and time of dishonour, or the place and time of refusal of better security (Section 101(d) NI Act).
- The subscription of the notary public making the protest (Section 101(e) NI Act).
- Where there is an acceptance for honour or payment for honour, the names of the person by whom and for whom, and the manner in which, it was offered and effected (Section 101(f) NI Act).
Example of Section 101 NI Act
FAQs on Section 101 NI Act
What is Section 101 NI Act?▼
Section 101 NI Act specifies the mandatory contents of a protest certificate made under Section 100 NI Act. It also states how a notary public may make the demand for payment, acceptance, or better security.
Must the original instrument be attached to a protest under Section 101(a) NI Act?▼
No. Under Section 101(a) NI Act, the protest must contain either the instrument itself or a literal transcript of the instrument and of everything written or printed on it.
Who can make the demand for payment, acceptance, or better security under Section 101 NI Act?▼
The notary public, the notary public's clerk, or a registered letter where authorized. Under the concluding paragraph of Section 101 NI Act, the notary public may make the demand mentioned in Section 101(c) NI Act in person, through the notary public's clerk, or, where authorized by agreement or usage, by registered letter.
What if the person against whom the instrument is protested cannot be found under Section 101(c) NI Act?▼
The protest must record that fact. Under Section 101(c) NI Act, the protest must state the terms of the person's answer, if any, or state that the person gave no answer, or that the person could not be found.
When must a protest include details of acceptance or payment for honour under Section 101(f) NI Act?▼
Only when an acceptance for honour or a payment for honour takes place. In that event, Section 101(f) NI Act requires the protest to state the name of the person by whom, the name of the person for whom, and the manner in which the acceptance or payment for honour was offered and effected.
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Sources: Bare Act Text, Negotiable Instruments Act, 1881 (India Code) ·