Section 71 NI Act: Presentment when maker, etc., has no known place of business or residence

Negotiable Instruments Act, 1881

Section 71 NI Act at a Glance

Section 71 NI Act allows a negotiable instrument to be presented for acceptance or payment to the maker, drawee, or acceptor in person wherever found, if that party has no known place of business or fixed residence and the instrument specifies no place.

Section 71 NI Act Bare Act Text

71. Presentment when maker, etc., has no known place of business or residence.

If the maker, drawee or acceptor of a negotiable instrument has no known place of business or fixed residence, and no place is specified in the instrument for presentment for acceptance or payment such presentment may be made to him in person wherever he can be found.

Section 71 NI Act in Simple Words

Section 71 NI Act provides a rule for presenting a negotiable instrument when the person to whom presentment is to be made cannot be reached at a business address, a fixed residence, or a place named in the instrument. It covers both presentment for acceptance and presentment for payment.

Two conditions must exist for Section 71 NI Act to apply: first, the maker, drawee, or acceptor of the negotiable instrument has no known place of business or fixed residence; second, no place is specified in the instrument for presentment for acceptance or payment. When both conditions are met, presentment for acceptance or payment may be made to the maker, drawee, or acceptor in person wherever that person can be found.

When Section 71 NI Act Applies

  • The instrument is a negotiable instrument.
  • The maker, drawee, or acceptor has no known place of business or fixed residence.
  • No place is specified in the instrument for presentment for acceptance or payment.
  • Presentment for acceptance or payment may be made to the maker, drawee, or acceptor in person wherever that person can be found.

Example of Section 71 NI Act

Manoj makes a promissory note for ₹25,000 payable to Ritu without specifying any place in the note for presentment for payment. Manoj has no known place of business and no fixed residence. Ritu locates Manoj at a market in Nagpur. Under Section 71 NI Act, Ritu may present the promissory note for payment to Manoj in person in Nagpur wherever Manoj can be found.

FAQs on Section 71 NI Act

What is Section 71 NI Act?▼

Section 71 NI Act explains how to present a negotiable instrument for acceptance or payment when the maker, drawee, or acceptor has no known place of business or fixed residence and no place is specified in the instrument. In that situation, presentment may be made to the maker, drawee, or acceptor in person wherever that person can be found.

Does Section 71 NI Act cover both presentment for acceptance and presentment for payment?▼

Yes. Section 71 NI Act expressly applies to presentment for acceptance or payment when no place is specified in the instrument and the maker, drawee, or acceptor has no known place of business or fixed residence.

Is personal presentment mandatory under Section 71 NI Act?▼

No, Section 71 NI Act uses the word 'may'. It states that presentment for acceptance or payment may be made to the maker, drawee, or acceptor in person wherever that person can be found.

Can Section 71 NI Act be used if the negotiable instrument names a specific place for payment?▼

No. Section 71 NI Act applies only when no place is specified in the instrument for presentment for acceptance or payment and the maker, drawee, or acceptor has no known place of business or fixed residence.

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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) ·