Section 93 NI Act: By and to whom notice should be given

Negotiable Instruments Act, 1881

Section 93 NI Act at a Glance

Section 93 NI Act specifies who must give notice of dishonour and who must receive it when a promissory note, bill of exchange, or cheque is dishonoured. It also states that notice is not required to be given to the maker, drawee, or acceptor.

Section 93 NI Act Bare Act Text

93. By and to whom notice should be given.
When a promissory note, bill of exchange or cheque is dishonoured by non-acceptance or non-payment, the holder thereof, or some party thereto who remains liable thereon, must give notice that the instrument has been so dishonoured to all other parties whom the holder seeks to make severally liable thereon, and to some one of several parties whom he seeks to make jointly liable thereon.
Nothing in this section renders it necessary to give notice to the maker of the dishonoured promissory note or the drawee or acceptor of the dishonoured bill of exchange or cheque.

Section 93 NI Act in Simple Words

Section 93 NI Act sets out who must give notice of dishonour and to whom that notice must be given. The rule applies when a promissory note, bill of exchange, or cheque is dishonoured either by non-acceptance or by non-payment.

Under the first paragraph of Section 93 NI Act, notice that the instrument has been dishonoured must be given either by the holder of the instrument or by some party to the instrument who remains liable on it. The notice must be given to all other parties whom the holder seeks to make severally liable on the instrument. Where the holder seeks to make several parties jointly liable on the instrument, notice must be given to some one of those jointly liable parties.

The second paragraph of Section 93 NI Act sets a limit on this requirement. Nothing in Section 93 NI Act makes it necessary to give notice of dishonour to the maker of the dishonoured promissory note, or to the drawee or acceptor of the dishonoured bill of exchange or cheque.

When Section 93 NI Act Applies

A promissory note, bill of exchange, or cheque is dishonoured by non-acceptance or by non-payment.
Notice of dishonour must be given by the holder of the instrument or by a party to the instrument who remains liable on it.
Notice must be given to all other parties whom the holder seeks to make severally liable on the instrument.
Notice must be given to some one of several parties whom the holder seeks to make jointly liable on the instrument.
Notice does not need to be given to the maker of the dishonoured promissory note, or to the drawee or acceptor of the dishonoured bill of exchange or cheque.

Example of Section 93 NI Act

Radhika holds a bill of exchange that Tenzin accepted, and which Arvind and Rekha endorsed separately. When Radhika presents the bill for payment in Dehradun, Tenzin defaults in payment, dishonouring the bill. To make Arvind and Rekha severally liable on the dishonoured bill, Radhika must give notice of dishonour to both Arvind and Rekha under Section 93 NI Act. Under the second paragraph of Section 93 NI Act, Radhika does not need to give notice of dishonour to Tenzin, the acceptor of the bill.

FAQs on Section 93 NI Act

What is Section 93 NI Act?▼

Section 93 NI Act states who must give notice of dishonour and to whom notice must be given when a promissory note, bill of exchange, or cheque is dishonoured by non-acceptance or non-payment. It also clarifies that no notice is required for the maker of the note or the drawee or acceptor of the bill or cheque.

Who can give a notice of dishonour under Section 93 NI Act?▼

The holder of the dishonoured instrument, or some party to the instrument who remains liable on it. Either of these parties must give notice that the instrument has been dishonoured.

To whom must notice of dishonour be given under Section 93 NI Act?▼

To all other parties whom the holder seeks to make severally liable on the instrument, and to some one of several parties whom the holder seeks to make jointly liable on it.

Must notice of dishonour be given to every person who is jointly liable under Section 93 NI Act?▼

No. Where the holder seeks to make several parties jointly liable on the instrument, Section 93 NI Act requires notice to be given to some one of those jointly liable parties.

Is notice of dishonour required for the maker of a promissory note or the acceptor of a bill under Section 93 NI Act?▼

No. The second paragraph of Section 93 NI Act states that nothing in Section 93 NI Act renders it necessary to give notice to the maker of a dishonoured promissory note, or to the drawee or acceptor of a dishonoured bill of exchange or cheque.

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