Section 73 NI Act: Presentment of cheque to charge any other person

Negotiable Instruments Act, 1881

Section 73 NI Act at a Glance

Section 73 NI Act states that in order to charge any person other than the drawer on a cheque, the cheque must be presented within a reasonable time after delivery of the cheque by that person.

Section 73 NI Act Bare Act Text

73. Presentment of cheque to charge any other person.

A cheque must, in order to charge any person except the drawer, be presented within a reasonable time after delivery thereof by such person.

Section 73 NI Act in Simple Words

Section 73 NI Act sets the time rule for presenting a cheque when the holder seeks to charge any person other than the drawer.

Under Section 73 NI Act, in order to charge any person except the drawer, a cheque must be presented within a reasonable time after the delivery of the cheque by that person. The period of reasonable time under Section 73 NI Act is measured from the delivery of the cheque by the specific person sought to be charged.

When Section 73 NI Act Applies

  • The instrument is a cheque.
  • Presentment is made in order to charge a person other than the drawer of the cheque.
  • That person has delivered the cheque.
  • The cheque must be presented within a reasonable time after delivery of the cheque by that person.

Example of Section 73 NI Act

Dinesh draws a cheque for ₹40,000 payable to Sunita in Meerut. Sunita indorses and delivers the cheque to Sanjay. Under Section 73 NI Act, in order to charge Sunita (a person other than the drawer Dinesh), Sanjay must present the cheque within a reasonable time after the delivery of the cheque by Sunita.

FAQs on Section 73 NI Act

What is Section 73 NI Act?▼

Section 73 NI Act specifies when a cheque must be presented in order to charge any person except the drawer. It requires the cheque to be presented within a reasonable time after delivery of the cheque by that person.

Does Section 73 NI Act apply to the drawer of a cheque?▼

No. Section 73 NI Act applies only to charge any person except the drawer, while presentment of a cheque to charge the drawer is governed by Section 72 NI Act.

From what point is the reasonable time measured under Section 73 NI Act?▼

From the delivery of the cheque by the person sought to be charged. Section 73 NI Act states that the cheque must be presented within a reasonable time after delivery thereof by such person.

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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) ·