Section 72 NI Act: Presentment of cheque to charge drawer

Negotiable Instruments Act, 1881

Section 72 NI Act at a Glance

Section 72 NI Act requires a cheque, subject to Section 84 NI Act, to be presented at the drawee bank before the relation between the drawer and the drawer's banker is altered to the drawer's prejudice, in order to charge the drawer.

Section 72 NI Act Bare Act Text

72. Presentment of cheque to charge drawer.

Subject to the provisions of section 84, a cheque must, in order to charge the drawer, be presented at the bank upon which it is drawn before the relation between the drawer and his banker has been altered to the prejudice of the drawer.

Amendments to this section
  • Ins. by Act 6 of 1897, s. 2.

Section 72 NI Act in Simple Words

Section 72 NI Act sets the condition for presenting a cheque when the holder seeks to charge the drawer. To charge the drawer, the cheque must be presented at the bank upon which the cheque is drawn before the relation between the drawer and the drawer's banker has been altered to the prejudice of the drawer.

Section 72 NI Act operates subject to Section 84 NI Act. Section 84 NI Act deals with a cheque not presented for payment within a reasonable time of its issue. Act 6 of 1897 inserted the opening words "Subject to the provisions of section 84,".

When Section 72 NI Act Applies

  • The instrument is a cheque.
  • Presentment is made in order to charge the drawer of the cheque.
  • The cheque must be presented at the bank upon which the cheque is drawn.
  • Presentment must take place before the relation between the drawer and the drawer's banker has been altered to the prejudice of the drawer.
  • The rule is subject to Section 84 NI Act regarding discharge of the drawer to the extent of actual damage caused by failure to present within a reasonable time of issue.

Example of Section 72 NI Act

Gopal draws a cheque for ₹1,00,000 on a bank in Cuttack payable to Nandini. Under Section 72 NI Act, subject to Section 84 NI Act, in order to charge Gopal as the drawer, Nandini must present the cheque at the Cuttack bank upon which it is drawn before the relation between Gopal and Gopal's banker is altered to Gopal's prejudice. Nandini presents the cheque at that bank in Cuttack within a reasonable time of issue while the relation between Gopal and the banker remains unaltered. Nandini's presentment meets the requirement of Section 72 NI Act to charge Gopal.

FAQs on Section 72 NI Act

What is Section 72 NI Act?▼

Section 72 NI Act states the requirement for presenting a cheque in order to charge the drawer of the cheque. Subject to Section 84 NI Act, the cheque must be presented at the bank upon which it is drawn before the relation between the drawer and the drawer's banker has been altered to the prejudice of the drawer.

Where must a cheque be presented under Section 72 NI Act to charge the drawer?▼

At the bank upon which the cheque is drawn. Presentment must occur before the relation between the drawer and the drawer's banker has been altered to the drawer's prejudice.

How does Section 84 NI Act affect the drawer's liability under Section 72 NI Act?▼

Under Section 84(1) NI Act, if a cheque is not presented within a reasonable time of its issue and the drawer (having the right as between the drawer and the banker to have the cheque paid when presentment ought to have been made) suffers actual damage from the delay, the drawer is discharged to the extent of that damage. Under Section 84(3) NI Act, the holder then becomes a creditor of the banker in place of the drawer to the extent of that discharge.

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Sources: Bare Act Text, Negotiable Instruments Act, 1881 (India Code) ·