Section 96 NI Act: Agent for presentment

Negotiable Instruments Act, 1881

Section 96 NI Act at a Glance

Section 96 NI Act sets the time allowed for giving notice of dishonour when an instrument is deposited with an agent for presentment. The agent gets the same time as a holder to notify the principal, and the principal gets a further equal period.

Section 96 NI Act Bare Act Text

96. Agent for presentment.

When the instrument is deposited with an agent for presentment, the agent is entitled to the same time to give notice to his principal as if he were the holder giving notice of dishonour, and the principal is entitled to a further like period to give notice of dishonour.

Section 96 NI Act in Simple Words

Section 96 NI Act governs the time allowed for giving notice of dishonour when an instrument is deposited with an agent for presentment. It divides the time for giving notice into two separate periods: one for the agent and one for the principal.

First, the agent with whom the instrument is deposited for presentment is entitled to the same time to give notice of dishonour to the agent's principal as if the agent were the holder giving notice of dishonour. Second, the principal is entitled to a further like period to give notice of dishonour.

When Section 96 NI Act Applies

  • The instrument is deposited with an agent for presentment.
  • The agent is entitled to the same time to give notice to the principal as if the agent were the holder giving notice of dishonour.
  • The principal is entitled to a further like period to give notice of dishonour.

Example of Section 96 NI Act

Jyoti in Nashik deposits a bill of exchange with an agent, Manoj, for presentment. When the bill is dishonoured by non-payment, Section 96 NI Act entitles Manoj to the same time to give notice of dishonour to Jyoti (the principal) as if Manoj were the holder giving notice of dishonour. Once Jyoti receives notice from Manoj, Section 96 NI Act entitles Jyoti to a further like period to give notice of dishonour to prior parties.

FAQs on Section 96 NI Act

What is Section 96 NI Act?▼

Section 96 NI Act specifies the time allowed for giving notice of dishonour when an instrument is deposited with an agent for presentment. It entitles the agent to the same time to notify the principal as if the agent were the holder, and entitles the principal to a further like period to give notice of dishonour.

How much time does an agent for presentment have to notify the principal under Section 96 NI Act?▼

The same time as if the agent were the holder giving notice of dishonour.

How much time does the principal get to give notice of dishonour under Section 96 NI Act?▼

A further like period. Section 96 NI Act entitles the principal to an additional period of the same duration as the period allowed to the agent.

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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) ·