Section 61 NI Act: Presentment for acceptance
Negotiable Instruments Act, 1881
Section 61 NI Act at a Glance
Section 61 NI Act governs presenting a bill of exchange payable after sight to the drawee for acceptance. Default relieves other parties of liability to the defaulter, and if the drawee cannot be found after reasonable search, the bill is dishonoured.
Section 61 NI Act Bare Act Text
61. Presentment for acceptance.
A bill of exchange payable after sight must, if no time or place is specified therein for presentment, be presented to the drawee thereof for acceptance, if he can, after reasonable search, be found, by a person entitled to demand acceptance, within a reasonable time after it is drawn, and in business hours on a business day. In default of such presentment, no party thereto is liable thereon to the person making such default.
If the drawee cannot, after reasonable search, be found, the bill is dishonoured.
If the bill is directed to the drawee at a particular place, it must be presented at that place; and if at the due date for presentment he cannot, after reasonable search, be found there, the till is dishonoured.
Where authorized by agreement or usage, a presentment through the post office by means of a registered letter is sufficient.
Amendments to this section
- Added by Act 2 of 1885, s. 4.
Section 61 NI Act in Simple Words
Section 61 NI Act sets out the requirements for presenting a bill of exchange payable after sight for acceptance. Under the first paragraph of Section 61 NI Act, if the bill specifies no time or place for presentment, a person entitled to demand acceptance must present the bill to the drawee for acceptance, if the drawee can be found after a reasonable search. This presentment must take place within a reasonable time after the bill is drawn, and in business hours on a business day. In default of such presentment, no party to the bill is liable on the bill to the person making that default.
The second paragraph of Section 61 NI Act deals with the situation where the drawee cannot be located. If the drawee cannot be found after a reasonable search, the bill of exchange is dishonoured.
The third paragraph of Section 61 NI Act applies when the bill of exchange is directed to the drawee at a particular place. In that case, the bill must be presented at that specified place, and if at the due date for presentment the drawee cannot be found at that place after a reasonable search, the bill is dishonoured. The official text prints "the till is dishonoured" here; the sense is "the bill is dishonoured".
Under the fourth paragraph of Section 61 NI Act, where agreement or usage authorizes it, presentment through the post office by means of a registered letter is sufficient. Act 2 of 1885 added this fourth paragraph.
When Section 61 NI Act Applies
- The instrument is a bill of exchange payable after sight.
- If no time or place is specified for presentment, a person entitled to demand acceptance must present the bill to the drawee for acceptance (if found after reasonable search) within a reasonable time after the bill is drawn, and in business hours on a business day.
- In default of such presentment, no party to the bill is liable on the bill to the person making that default.
- If the drawee cannot be found after reasonable search (or if the bill is directed to the drawee at a particular place and at the due date for presentment the drawee cannot be found there after reasonable search), the bill is dishonoured.
- Where authorized by agreement or usage, presentment through the post office by means of a registered letter is sufficient.
Example of Section 61 NI Act
FAQs on Section 61 NI Act
What is Section 61 NI Act?▼
Section 61 NI Act sets the rules for presenting a bill of exchange payable after sight to the drawee for acceptance, including when and where presentment must be made. Section 61 NI Act also states the consequences of default in presentment, when the bill is dishonoured if the drawee cannot be found after reasonable search, and when presentment by registered letter through the post office is sufficient.
What happens if a person fails to make presentment for acceptance as required by Section 61 NI Act?▼
No party to the bill of exchange is liable on the bill to the person making that default in presentment.
What is the result under Section 61 NI Act if the drawee cannot be found after a reasonable search?▼
The bill of exchange is dishonoured. The same result applies if the bill is directed to the drawee at a particular place and the drawee cannot be found at that place after a reasonable search at the due date for presentment.
Can a bill of exchange be presented for acceptance by registered post under Section 61 NI Act?▼
Yes. Where authorized by agreement or usage, presentment through the post office by means of a registered letter is sufficient under Section 61 NI Act.
Have questions about Section 61 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) ·