Section 63 NI Act: Drawee's time for deliberation

Negotiable Instruments Act, 1881

Section 63 NI Act at a Glance

Section 63 NI Act requires the holder of a bill of exchange presented for acceptance to allow the drawee 48 hours, excluding public holidays, to consider whether to accept the bill, if the drawee asks for that time.

Section 63 NI Act Bare Act Text

63. Drawee's time for deliberation.

The holder must, if so required by the drawee of a bill of exchange presented to him for acceptance, allow the drawee forty-eight hours (exclusive of public holidays) to consider whether he will accept it.

Amendments to this section
  • Subs. by Act 12 of 1921, s. 2, for "twenty-four".

Section 63 NI Act in Simple Words

Section 63 NI Act gives the drawee of a bill of exchange time to consider whether to accept the bill when it is presented for acceptance.

When the holder of a bill of exchange presents the bill to the drawee for acceptance, and the drawee asks for time to deliberate, the holder must allow the drawee 48 hours to decide whether to accept the bill. Public holidays are excluded when counting those 48 hours.

Act 12 of 1921 put "forty-eight" in place of "twenty-four".

When Section 63 NI Act Applies

  • A bill of exchange is presented by the holder to the drawee for acceptance.
  • The drawee requires time from the holder to consider whether to accept the bill.
  • The holder must allow the drawee 48 hours to deliberate.
  • Public holidays are excluded when calculating the 48 hours.

Example of Section 63 NI Act

Salim in Siliguri holds a bill of exchange for ₹1,00,000 drawn on Venkat in Hubballi and presents the bill to Venkat for acceptance on a Saturday morning. Venkat asks Salim for time to consider whether to accept the bill of exchange. Under Section 63 NI Act, Salim must allow Venkat 48 hours to decide. Because Sunday is a public holiday, Sunday is excluded when counting the 48 hours allowed to Venkat.

FAQs on Section 63 NI Act

What is Section 63 NI Act?▼

Section 63 NI Act states that when a bill of exchange is presented for acceptance, the holder must give the drawee 48 hours to decide whether to accept it, if the drawee asks for time. Public holidays are excluded from this 48-hour period.

How much time must the holder allow the drawee to consider accepting a bill of exchange under Section 63 NI Act?▼

48 hours, excluding public holidays, if the drawee asks for time to consider whether to accept the bill.

Are public holidays counted in the 48 hours under Section 63 NI Act?▼

No. Section 63 NI Act explicitly excludes public holidays from the 48 hours given to the drawee.

Does the holder have to wait 48 hours in every case under Section 63 NI Act?▼

No. The holder is required to allow the 48 hours only if the drawee of the bill of exchange requires it.

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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) ·