Section 74 NI Act: Presentment of instrument payable on demand

Negotiable Instruments Act, 1881

Section 74 NI Act at a Glance

Section 74 NI Act requires a negotiable instrument payable on demand, subject to Section 31 NI Act, to be presented for payment within a reasonable time after the holder receives the instrument.

Section 74 NI Act Bare Act Text

74. Presentment of instrument payable on demand.

Subject to the provisions of section 31, a negotiable instrument payable on demand must be presented for payment within a reasonable time after it is received by the holder.

Section 74 NI Act in Simple Words

Section 74 NI Act sets the time limit for presenting a negotiable instrument that is payable on demand. Subject to the provisions of Section 31 NI Act, a negotiable instrument payable on demand must be presented for payment within a reasonable time after the instrument is received by the holder.

When Section 74 NI Act Applies

  • The instrument is a negotiable instrument payable on demand.
  • The instrument has been received by the holder.
  • The instrument must be presented for payment within a reasonable time after it is received by the holder.
  • The rule operates subject to the provisions of Section 31 NI Act regarding the liability of the drawee of a cheque.

Example of Section 74 NI Act

Yusuf makes a promissory note payable on demand for ₹60,000 and delivers it to Geeta in Aurangabad. Under Section 74 NI Act, subject to Section 31 NI Act, because the negotiable instrument is payable on demand, Geeta must present the promissory note for payment within a reasonable time after Geeta receives the note as the holder.

FAQs on Section 74 NI Act

What is Section 74 NI Act?▼

Section 74 NI Act sets the time requirement for presenting a negotiable instrument payable on demand for payment. Subject to Section 31 NI Act, the instrument must be presented for payment within a reasonable time after it is received by the holder.

When does the reasonable time for presentment start under Section 74 NI Act?▼

When the instrument is received by the holder. Section 74 NI Act requires presentment for payment within a reasonable time after the instrument is received by the holder.

What is the effect of Section 31 NI Act on Section 74 NI Act?▼

Section 74 NI Act is subject to Section 31 NI Act. Under Section 31 NI Act, the drawee of a cheque who has sufficient funds of the drawer properly applicable to the payment of the cheque must pay the cheque when duly required to do so, and in default must compensate the drawer for any loss or damage caused by that default.

Have questions about Section 74 NI Act?

Ask NyayGuru about your situation and get an answer based on the Negotiable Instruments Act, 1881.

Ask NyayGuru →

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) ·