Section 75A NI Act: Excuse for delay in presentment for acceptance or payment

Negotiable Instruments Act, 1881

Section 75A NI Act at a Glance

Section 75A NI Act excuses delay in presentment for acceptance or payment when caused by circumstances beyond the holder's control and not imputable to the holder's default, misconduct, or negligence. Presentment must occur within a reasonable time once the cause of delay ceases.

Section 75A NI Act Bare Act Text

75A. Excuse for delay in presentment for acceptance or payment.

Delay in presentment for acceptance or payment is excused if the delay is caused by circumstances beyond the control of the holder, and not imputable to his default, misconduct or negligence. When the cause of delay ceases to operate, presentment must be made within a reasonable time.

Amendments to this section
  • Ins. by Act 25 of 1920, s. 2.
  • Subs. by Act 12 of 1921, s. 3, for "for payment".

Section 75A NI Act in Simple Words

Section 75A NI Act states when a delay in presenting an instrument for acceptance or for payment is legally excused. Under the first sentence of Section 75A NI Act, delay in presentment for acceptance or payment is excused if the delay is caused by circumstances beyond the control of the holder, and is not imputable to the holder's default, misconduct, or negligence.

Under the second sentence of Section 75A NI Act, the excuse lasts only while the obstacle continues: when the cause of delay ceases to operate, presentment must be made within a reasonable time. Act 25 of 1920 inserted Section 75A NI Act. Act 12 of 1921 put "for acceptance or payment" in place of "for payment".

When Section 75A NI Act Applies

  • There is a delay in presentment for acceptance or payment.
  • The delay is caused by circumstances beyond the control of the holder.
  • The delay is not imputable to the default, misconduct, or negligence of the holder.
  • When the cause of delay ceases to operate, presentment must be made within a reasonable time.

Example of Section 75A NI Act

Varun is the holder of a bill of exchange payable in Guwahati. Before Varun can present the bill for payment, severe floods suspend transport in the area, which is a circumstance beyond Varun's control and not imputable to Varun's default, misconduct, or negligence. Under Section 75A NI Act, the delay in presentment during the floods is excused, and once the floods subside and the cause of delay ceases to operate, Varun must make presentment within a reasonable time.

FAQs on Section 75A NI Act

What is Section 75A NI Act?▼

Section 75A NI Act excuses delay in presentment for acceptance or payment when the delay is caused by circumstances beyond the control of the holder and is not imputable to the holder's default, misconduct, or negligence. Once the cause of delay ceases to operate, presentment must be made within a reasonable time.

Does Section 75A NI Act excuse delay caused by the holder's own negligence?▼

No. Section 75A NI Act excuses delay only if the delay is caused by circumstances beyond the control of the holder and is not imputable to the holder's default, misconduct, or negligence.

What must the holder do after the cause of delay ends under Section 75A NI Act?▼

Present the instrument within a reasonable time. Section 75A NI Act states that when the cause of delay ceases to operate, presentment must be made within a reasonable time.

Does Section 75A NI Act apply to presentment for acceptance as well as presentment for payment?▼

Yes. Section 75A NI Act expressly covers delay in presentment for acceptance or payment.

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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) ·