Section 104 NI Act: Protest of foreign bills

Negotiable Instruments Act, 1881

Section 104 NI Act at a Glance

Section 104 NI Act requires foreign bills of exchange to be protested for dishonour whenever such protest is required by the law of the place where the bills are drawn.

Section 104 NI Act Bare Act Text

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.

Section 104 NI Act in Simple Words

Section 104 NI Act sets the rule on when protesting a foreign bill of exchange is compulsory.

Under Section 104 NI Act, foreign bills of exchange must be protested for dishonour when such protest is required by the law of the place where they are drawn. While Section 100 NI Act permits a holder to protest a dishonoured promissory note or bill of exchange, Section 104 NI Act makes protest mandatory for foreign bills of exchange if the law of the place of drawing requires it.

When Section 104 NI Act Applies

  • The instrument is a foreign bill of exchange.
  • The foreign bill of exchange has been dishonoured.
  • The law of the place where the foreign bill of exchange was drawn requires it to be protested for dishonour.

Example of Section 104 NI Act

Anand in Visakhapatnam is the holder of a foreign bill of exchange for ₹5,00,000. Under the law of the place where the foreign bill of exchange was drawn, a bill must be protested if it is dishonoured. When the bill is dishonoured, Section 104 NI Act requires Anand to have the foreign bill of exchange protested for dishonour.

FAQs on Section 104 NI Act

What is Section 104 NI Act?▼

Section 104 NI Act states the rule on protesting foreign bills of exchange after dishonour. It requires foreign bills of exchange to be protested for dishonour when protest is required by the law of the place where they are drawn.

Which law determines whether a foreign bill of exchange must be protested under Section 104 NI Act?▼

The law of the place where the foreign bill of exchange is drawn. Under Section 104 NI Act, if the law of that place requires protest for dishonour, the foreign bill of exchange must be protested.

Is protest compulsory for all foreign bills of exchange under Section 104 NI Act?▼

No. Section 104 NI Act requires a foreign bill of exchange to be protested for dishonour only when such protest is required by the law of the place where the bill is drawn.

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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) ·