Section 67 NI Act: Presentment for payment of promissory note payable by instalments

Negotiable Instruments Act, 1881

Section 67 NI Act at a Glance

Section 67 NI Act requires a promissory note payable by instalments to be presented for payment on the third day after the date fixed for each instalment. Non-payment on such presentment has the same effect as non-payment of a note at maturity.

Section 67 NI Act Bare Act Text

67. Presentment for payment of promissory note payable by instalments.

A promissory note payable by instalments must be presented for payment on the third day after the date fixed for payment of each instalment; and non-payment on such presentment has the same effect as non-payment of a note at maturity.

Section 67 NI Act in Simple Words

Section 67 NI Act governs the presentment for payment of a promissory note that is payable in instalments.

Under Section 67 NI Act, a promissory note payable by instalments must be presented for payment on the third day after the date fixed for the payment of each instalment. If payment is not made when the note is presented on that third day, the non-payment has the same legal effect as the non-payment of a promissory note at maturity.

When Section 67 NI Act Applies

  • The instrument is a promissory note payable by instalments.
  • The note must be presented for payment on the third day after the date fixed for payment of each instalment.
  • Non-payment on such presentment has the same effect as non-payment of a promissory note at maturity.

Example of Section 67 NI Act

Arvind in Rajkot makes a promissory note for ₹1,20,000 payable to Lalitha in 3 equal instalments of ₹40,000 each. The first instalment is fixed for payment on 10 March. Under Section 67 NI Act, Lalitha must present the promissory note to Arvind for payment of that instalment on 13 March, which is the third day after the date fixed for payment. When Arvind fails to pay on 13 March upon presentment, that non-payment has the same effect as non-payment of a promissory note at maturity.

FAQs on Section 67 NI Act

What is Section 67 NI Act?▼

Section 67 NI Act sets the rule for presenting a promissory note that is payable by instalments. It requires the note to be presented for payment on the third day after the date fixed for each instalment, and states that non-payment on such presentment has the same effect as non-payment of a note at maturity.

On which day must an instalment of a promissory note be presented for payment under Section 67 NI Act?▼

On the third day after the date fixed for payment of that instalment.

What is the effect of non-payment when a promissory note payable by instalments is presented under Section 67 NI Act?▼

Non-payment on such presentment has the same effect as non-payment of a promissory note at maturity.

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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) ·