Section 21 NI Act: "At sight", "On presentment"

Negotiable Instruments Act, 1881

Section 21 NI Act at a Glance

Section 21 NI Act says that in a promissory note or bill of exchange, "at sight" and "on presentment" mean on demand. "After sight" means after presentment for sight in a note, and after acceptance, noting or protest for non-acceptance in a bill.

Section 21 NI Act Bare Act Text

21. "At sight", "On presentment".

In a promissory note or bill of exchange the expressions “at sight” and “on presentment” mean on demand. The expression “After sight”—“after sight” means, in a promissory note, after presentment for sight, and, in a bill of exchange, after acceptance, or nothing for non-acceptance, or protest for non-acceptance.

Section 21 NI Act in Simple Words

Section 21 NI Act defines three time expressions used in promissory notes and bills of exchange: 'at sight', 'on presentment', and 'after sight'. First, in either a promissory note or a bill of exchange, the expressions 'at sight' and 'on presentment' mean 'on demand'.

Second, Section 21 NI Act defines the expression 'after sight' differently for a promissory note and for a bill of exchange. In a promissory note, 'after sight' means after presentment of the promissory note for sight.

In a bill of exchange, 'after sight' means after acceptance of the bill of exchange, or after noting for non-acceptance, or after protest for non-acceptance. The official text prints "or nothing for non-acceptance"; the sense is "or noting for non-acceptance".

When Section 21 NI Act Applies

  • In a promissory note or a bill of exchange, the expressions 'at sight' and 'on presentment' mean 'on demand'.
  • In a promissory note, the expression 'after sight' means after presentment for sight.
  • In a bill of exchange, the expression 'after sight' means after acceptance, or after noting for non-acceptance, or after protest for non-acceptance.

Example of Section 21 NI Act

Pradeep in Vadodara signs a promissory note promising to pay ₹60,000 to Shreya 'at sight'. Under Section 21 NI Act, the expression 'at sight' in the promissory note means 'on demand', so the note is payable on demand. In a separate transaction, Pradeep draws a bill of exchange on Anand payable '30 days after sight' to Shreya. Under Section 21 NI Act, because this second instrument is a bill of exchange, 'after sight' means after Anand's acceptance of the bill, or after noting for non-acceptance, or after protest for non-acceptance.

FAQs on Section 21 NI Act

What is Section 21 NI Act?▼

Section 21 NI Act defines the expressions 'at sight', 'on presentment', and 'after sight' when used in a promissory note or a bill of exchange. Under Section 21 NI Act, 'at sight' and 'on presentment' mean on demand, while 'after sight' means after presentment for sight in a promissory note and after acceptance, noting for non-acceptance, or protest for non-acceptance in a bill of exchange.

What do 'at sight' and 'on presentment' mean under Section 21 NI Act?▼

On demand. Section 21 NI Act states that in a promissory note or a bill of exchange, both 'at sight' and 'on presentment' mean on demand.

What does 'after sight' mean in a promissory note under Section 21 NI Act?▼

After presentment for sight. Under Section 21 NI Act, when a promissory note uses the expression 'after sight', it means after the promissory note is presented for sight.

What does 'after sight' mean in a bill of exchange under Section 21 NI Act?▼

After acceptance, or noting for non-acceptance, or protest for non-acceptance. Section 21 NI Act gives 'after sight' this meaning specifically for a bill of exchange.

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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) ·