Section 24 NI Act: Calculating maturity of bill or note payable so many days after date or sight

Negotiable Instruments Act, 1881

Section 24 NI Act at a Glance

Section 24 NI Act states that when calculating the maturity of a promissory note or bill of exchange payable a certain number of days after date, after sight, or after a certain event, the starting day is excluded.

Section 24 NI Act Bare Act Text

24. Calculating maturity of bill or note payable so many days after date or sight.
In calculating the date at which a promissory note or bill of exchange made payable a certain number of days after date or after sight or after a certain event is at maturity, the day of the date, or of presentment for acceptance or sight, or of protest for non-acceptance, or on which the event happens, shall be excluded.

Section 24 NI Act in Simple Words

Section 24 NI Act gives the rule for counting days when calculating the maturity date of a promissory note or bill of exchange made payable a certain number of days after date, after sight, or after a certain event.

Under Section 24 NI Act, the starting day is excluded from the count. Specifically, the day of the date of the instrument, the day of presentment for acceptance or sight, the day of protest for non-acceptance, or the day on which the specified event happens is excluded when calculating the date of maturity.

When Section 24 NI Act Applies

The instrument is a promissory note or a bill of exchange.
The instrument is made payable a certain number of days after date, after sight, or after a certain event.
In calculating maturity, the day of the date, the day of presentment for acceptance or sight, the day of protest for non-acceptance, or the day on which the event happens is excluded.

Example of Section 24 NI Act

Karan in Siliguri makes a promissory note for ₹40,000 in favour of Ritu dated 10th June, made payable 15 days after date. When calculating the date on which the promissory note is at maturity, Section 24 NI Act requires excluding 10th June, which is the day of the date of the promissory note. The count of the 15 days therefore begins on 11th June rather than 10th June.

FAQs on Section 24 NI Act

What is Section 24 NI Act?▼

Section 24 NI Act sets the rule for counting days when calculating the maturity of a promissory note or bill of exchange payable a certain number of days after date, after sight, or after a certain event. Section 24 NI Act requires excluding the starting day from the calculation.

Is the date on which a promissory note or bill of exchange is dated counted under Section 24 NI Act?▼

No. Under Section 24 NI Act, the day of the date of the promissory note or bill of exchange is excluded when calculating maturity.

Which starting days are excluded under Section 24 NI Act?▼

Four starting days are listed for exclusion depending on how the instrument is payable. Section 24 NI Act excludes the day of the date, the day of presentment for acceptance or sight, the day of protest for non-acceptance, or the day on which the specified event happens.

Does Section 24 NI Act apply to instruments payable a stated number of months after date?▼

No. Section 24 NI Act applies to a promissory note or bill of exchange made payable a certain number of days after date, after sight, or after a certain event, while Section 23 NI Act covers instruments payable a stated number of months after date or sight.

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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) ·