Section 68 NI Act: Presentment for payment of instrument payable at specified place and not elsewhere

Negotiable Instruments Act, 1881

Section 68 NI Act at a Glance

Section 68 NI Act requires a promissory note, bill of exchange, or cheque made, drawn, or accepted payable at a specified place and not elsewhere to be presented for payment at that place in order to hold any party to the instrument liable.

Section 68 NI Act Bare Act Text

68. Presentment for payment of instrument payable at specified place and not elsewhere.

A promissory note, bill of exchange or cheque made, drawn or accepted payable at a specified place and not elsewhere must, in order to charge any party thereto, be presented for payment at that place.

Section 68 NI Act in Simple Words

Section 68 NI Act sets the place of presentment for an instrument that is made payable exclusively at a single specified location.

When a promissory note, a bill of exchange, or a cheque is made, drawn, or accepted payable at a specified place and not elsewhere, Section 68 NI Act requires that the instrument must be presented for payment at that specified place in order to charge any party to the instrument.

When Section 68 NI Act Applies

  • The instrument is a promissory note, a bill of exchange, or a cheque.
  • The instrument is made, drawn, or accepted payable at a specified place and not elsewhere.
  • The instrument must be presented for payment at that specified place in order to charge any party to the instrument.

Example of Section 68 NI Act

Deepa draws a bill of exchange for ₹80,000 on Tenzin, who accepts the bill payable at Tenzin's office in Kozhikode and not elsewhere. Shreya, who holds the bill, wants to hold the parties to the bill liable for payment. Under Section 68 NI Act, Shreya must present the bill of exchange for payment at Tenzin's office in Kozhikode in order to charge any party to the bill.

FAQs on Section 68 NI Act

What is Section 68 NI Act?▼

Section 68 NI Act states the rule for presenting an instrument that is payable at an exclusive specified place. When a promissory note, bill of exchange, or cheque is made, drawn, or accepted payable at a specified place and not elsewhere, it must be presented for payment at that place to hold any party to the instrument liable.

Where must an instrument payable at a specified place and not elsewhere be presented under Section 68 NI Act?▼

At that specified place. Presenting it there is required in order to charge any party to the instrument.

Which instruments are covered by Section 68 NI Act?▼

Promissory notes, bills of exchange, and cheques that are made, drawn, or accepted payable at a specified place and not elsewhere.

What if an instrument covered by Section 68 NI Act is not presented at the specified place?▼

Section 68 NI Act makes presentment at that place a condition for charging any party to the instrument, so without it no party can be charged.

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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) ·