Section 45A NI Act: Holder's right to duplicate of lost bill

Negotiable Instruments Act, 1881

Section 45A NI Act at a Glance

Section 45A NI Act lets the former holder of a bill of exchange lost before it is overdue apply to the drawer for another bill of the same tenor, giving security if required, and allows the drawer to be compelled upon refusal.

Section 45A NI Act Bare Act Text

45A. Holder's right to duplicate of lost bill.

Where a bill of exchange has been lost before it is over-due, the person who was the holder of it may apply to the drawer to give him another bill of the same tenor, giving security to the drawer, if required, to indemnify him against all persons whatever in case the bill alleged to have been lost shall be found again.

If the drawer on request as aforesaid refuses to give such duplicate bill, he may be compelled to do so.

Amendments to this section
  • Ins. by Act 2 of 1885, s. 3.

Section 45A NI Act in Simple Words

Section 45A NI Act gives a remedy when a bill of exchange is lost before it is over-due. The person who was the holder of the lost bill may apply to the drawer to give that person another bill of the same tenor.

When applying for the duplicate bill, the person who was the holder must give security to the drawer, if required, to indemnify the drawer against all persons whatever in case the bill alleged to have been lost is found again. Under the second paragraph of Section 45A NI Act, if the drawer refuses to give the duplicate bill after a request made in this manner, the drawer may be compelled to do so.

Act 2 of 1885 inserted Section 45A NI Act.

When Section 45A NI Act Applies

  • A bill of exchange has been lost before it is over-due.
  • The person who was the holder of the lost bill applies to the drawer for another bill of the same tenor.
  • The applicant gives security to the drawer, if required, to indemnify the drawer against all persons whatever if the bill alleged to have been lost is found again.
  • If the drawer refuses to give the duplicate bill on such request, the drawer may be compelled to do so.

Example of Section 45A NI Act

Asha in Chandigarh is the holder of a bill of exchange drawn by Sandeep that is due three months after date, and Asha loses the bill one month before the bill becomes over-due. Asha applies to Sandeep for a duplicate bill of the same tenor and offers security as required by Sandeep to indemnify Sandeep against all persons whatever if the lost bill is found again. Sandeep refuses to issue the duplicate bill. Under Section 45A NI Act, Asha is entitled to apply for the duplicate bill and Sandeep may be compelled to give it.

FAQs on Section 45A NI Act

What is Section 45A NI Act?▼

Section 45A NI Act gives the person who was the holder of a bill of exchange lost before it is over-due the right to apply to the drawer for another bill of the same tenor, on giving security if required. If the drawer refuses on such a request, the drawer may be compelled to give the duplicate bill.

Can the drawer demand security before issuing a duplicate of a lost bill of exchange?▼

Yes. Under Section 45A NI Act, the person applying for the duplicate bill must give security to the drawer, if required, to indemnify the drawer against all persons whatever in case the bill alleged to have been lost is found again.

What happens if the drawer refuses to give a duplicate bill after a proper request under Section 45A NI Act?▼

The drawer may be compelled to give the duplicate bill. Section 45A NI Act provides that if the drawer refuses on a request made in accordance with Section 45A NI Act, the drawer may be compelled to do so.

Does Section 45A NI Act apply if a bill of exchange is lost after it is over-due?▼

No. Section 45A NI Act applies where a bill of exchange has been lost before it is over-due.

Have questions about Section 45A NI Act?

Ask NyayGuru about your situation and get an answer based on the Negotiable Instruments Act, 1881.

Ask NyayGuru →

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) ·