Section 103 NI Act: Protest for non-payment after dishonour by non-acceptance

Negotiable Instruments Act, 1881

Section 103 NI Act at a Glance

Section 103 NI Act allows a bill of exchange payable at a place other than the drawee's residence, once dishonoured by non-acceptance, to be protested for non-payment at the place of payment without further presentment to the drawee.

Section 103 NI Act Bare Act Text

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 non-payment, in the place specified for payment, unless paid before or at maturity.

Section 103 NI Act in Simple Words

Section 103 NI Act explains how a bill of exchange that has already been dishonoured by non-acceptance may be protested for non-payment when it is payable at a place different from the drawee's residence.

Under Section 103 NI Act, if a bill of exchange is drawn payable at some place other than the place mentioned as the residence of the drawee, and the bill is dishonoured by non-acceptance, the holder does not need to present the bill again to the drawee for payment.

Instead, unless the bill is paid before or at maturity, the bill may be protested for non-payment in the place specified for payment without further presentment to the drawee.

When Section 103 NI Act Applies

  • A bill of exchange is drawn payable at a place other than the place mentioned as the residence of the drawee.
  • The bill of exchange is dishonoured by non-acceptance.
  • The bill of exchange is not paid before or at maturity.
  • The bill may be protested for non-payment in the place specified for payment, without further presentment to the drawee.

Example of Section 103 NI Act

Nasreen draws a bill of exchange for ₹3,00,000 on Kunal, whose residence is mentioned in the bill as Thiruvananthapuram, but the bill is drawn payable in Vadodara. When the bill is presented to Kunal for acceptance, it is dishonoured by non-acceptance. The bill is not paid before or at maturity. Under Section 103 NI Act, the holder may have the bill protested for non-payment in Vadodara, the place specified for payment, without presenting the bill again to Kunal.

FAQs on Section 103 NI Act

What is Section 103 NI Act?▼

Section 103 NI Act provides a rule for protesting certain bills of exchange for non-payment after they have been dishonoured by non-acceptance. If a bill is drawn payable at a place other than the drawee's residence and is dishonoured by non-acceptance, it may be protested for non-payment at the place specified for payment without further presentment to the drawee, unless paid before or at maturity.

Is a second presentment to the drawee required before protesting for non-payment under Section 103 NI Act?▼

No. Under Section 103 NI Act, when a bill of exchange payable at a place other than the drawee's residence has already been dishonoured by non-acceptance, it may be protested for non-payment without further presentment to the drawee.

Where is the protest for non-payment made under Section 103 NI Act?▼

In the place specified for payment in the bill of exchange. Section 103 NI Act states that the bill may be protested for non-payment in the place specified for payment.

When can a bill not be protested for non-payment under Section 103 NI Act?▼

When the bill is paid before or at maturity. Section 103 NI Act allows protest for non-payment only unless the bill is paid before or at maturity.

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Disclaimer: This is for informational purposes only. Always consult a qualified advocate for legal advice.

Sources: Bare Act Text, Negotiable Instruments Act, 1881 (India Code) ·