Section 104A NI Act: When noting equivalent to protest

Negotiable Instruments Act, 1881

Section 104A NI Act at a Glance

Section 104A NI Act states that when a bill or note must be protested within a specified time or before taking a further proceeding, noting the bill within that time is sufficient, and the formal protest may be drawn up later.

Section 104A NI Act Bare Act Text

104A. When noting equivalent to protest.
For the purposes of this Act, where a bill of 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.

Amendments to this section

Ins. by Act 2 of 1885, s. 6.

Section 104A NI Act in Simple Words

Section 104A NI Act explains when noting a dishonoured instrument satisfies the requirement of a protest for the purposes of the Negotiable Instruments Act, 1881.

Under Section 104A NI 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 specified time expires or before that further proceeding is taken.

Once the noting has been done in time, Section 104A NI Act allows the formal protest certificate to be extended at any time afterward, taking effect as of the date of the noting. The official text prints "a bill of note"; the sense is "a bill or note". Act 2 of 1885 inserted Section 104A NI Act.

When Section 104A NI Act Applies

A bill or note is required to be protested within a specified time or before some further proceeding is taken.
The bill has been noted for protest before the expiration of the specified time or before the taking of the proceeding.
The formal protest may be extended at any time after the noting as of the date of the noting.

Example of Section 104A NI Act

Raghav in Shimla holds a dishonoured bill of exchange for ₹4,00,000 that must be protested before Raghav files a legal proceeding. Before starting the proceeding, Raghav causes a notary public in Shimla to note the bill for protest. Two weeks later, the notary public draws up the formal protest certificate. Under Section 104A NI Act, noting the bill before taking the proceeding is sufficient, and the formal protest extended afterward takes effect as of the date of the noting.

FAQs on Section 104A NI Act

What is Section 104A NI Act?▼

Section 104A NI Act explains when noting a dishonoured instrument is treated as equivalent to a protest for the purposes of the Negotiable Instruments Act, 1881. Where a bill or note must be protested within a specified time or before a further proceeding is taken, noting the bill before that deadline or proceeding is sufficient, and the formal protest may be extended at any time afterward as of the date of the noting.

Must the formal protest certificate be completed before starting a legal proceeding under Section 104A NI Act?▼

No. Under Section 104A NI Act, it is sufficient that the bill has been noted for protest before the specified time expires or before the proceeding is taken, and the formal protest may be extended at any time after that.

What date does a formal protest take when it is extended later under Section 104A NI Act?▼

The date of the noting. Section 104A NI Act provides that the formal protest may be extended at any time after the noting as of the date of the noting.

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