Section 105 NI Act: Reasonable time

Negotiable Instruments Act, 1881

Section 105 NI Act at a Glance

Section 105 NI Act explains how to determine a reasonable time for presentment for acceptance or payment, giving notice of dishonour, and noting, and excludes public holidays when calculating that time.

Section 105 NI Act Bare Act Text

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.

Section 105 NI Act in Simple Words

Section 105 NI Act sets out the rule for determining what counts as a reasonable time for four steps under the Negotiable Instruments Act, 1881: presentment for acceptance, presentment for payment, giving notice of dishonour, and noting.

In determining what is a reasonable time for any of these four actions, Section 105 NI Act requires that regard be had to the nature of the instrument and the usual course of dealing with respect to similar instruments.

Section 105 NI Act also directs that in calculating such reasonable time, public holidays are excluded.

When Section 105 NI Act Applies

  • Applies to determining a reasonable time for presentment for acceptance, presentment for payment, giving notice of dishonour, and noting.
  • Regard must be had to the nature of the instrument.
  • Regard must be had to the usual course of dealing with respect to similar instruments.
  • Public holidays are excluded when calculating such time.

Example of Section 105 NI Act

Nisha holds a bill of exchange in Siliguri that is dishonoured by non-payment on a Saturday, and the following Sunday is a public holiday. Nisha causes a notary public to note the dishonour on Monday and dispatches notice of dishonour. Under Section 105 NI Act, in determining whether Nisha acted within a reasonable time for noting and giving notice of dishonour, regard must be had to the nature of the bill and the usual course of dealing with similar instruments, and the Sunday public holiday is excluded from the calculation.

FAQs on Section 105 NI Act

What is Section 105 NI Act?▼

Section 105 NI Act sets out the rule for determining what is a reasonable time for presentment for acceptance or payment, for giving notice of dishonour, and for noting. It requires consideration of the nature of the instrument and the usual course of dealing with similar instruments, and excludes public holidays when calculating that time.

Are public holidays counted when calculating a reasonable time under Section 105 NI Act?▼

No. Section 105 NI Act states that public holidays are excluded in calculating a reasonable time for presentment, notice of dishonour, and noting.

What factors are considered to decide a reasonable time under Section 105 NI Act?▼

Two factors. Under Section 105 NI Act, regard must be had to the nature of the instrument and the usual course of dealing with respect to similar instruments.

To which actions does Section 105 NI Act apply?▼

Presentment for acceptance, presentment for payment, giving notice of dishonour, and noting. Section 105 NI Act governs how a reasonable time is determined for each of those four steps.

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